We are wondering if an employee can be paid for a yearly bonus for 2021, paid out in February 2022 without it affecting their current EI benefits (maternity). The employee has commenced maternity leave in January 2022 and noted that as long as the company can confirm that the bonus relates to 2021 it shouldn’t be a problem and we would just need to reissue an ROE confirming the same.
Can you confirm if this is correct? My understanding was that since the payment of the bonus is in 2022, it would be considered 2022 income and as such, would be deducted from her EI benefits.
If the person is on EI benefits and a bonus in is paid during the time she is on a maternity leave:
- The ROE issued at the start of the maternity leave has to be amended
- The bonus amount payable in February 2022 has to be reported in Block 17C as other monies and added to pay period one in Block 15C.
- The bonus will be allocated by Service Canada to the start of the maternity leave, using her weekly average earnings.
- This will create an overpayment of EI benefits that the person will have to pay back to Service Canada
This is a common situation, which unfortunately means the person will lose some or all of the EI maternity benefits to which would have otherwise been available.