Do you have your statutory deductions and insurable hours straight when it comes to different forms of disability?
Short term and long term disability payments paid by an employer through payroll and paid directly to the employee are subject to which statutory deduction?
Do the payments need to have insurable hours attached to them?
All the statutory deductions: Both short term and long term disability payments paid by an employer through payroll and paid directly to the employee are subject to all the statutory deductions - Income Tax, Canada Pension Plan, and Employment Insurance. In the case of Québec: Income Tax, Québec Pension Plan, Employment Insurance and the Québec Parental Insurance Plan.
In addition, the income associated with the payments must have insurable hours attached to them equal to whatever the employee's deemed hours normally would have been had they been working. Insurable hours are hours for which the employee receives insurable earnings and "Wage-loss insurance" paid by the employer is insurable.
Natasha Smyth, B.SC.(Agr.), CPM
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