Record of Employment - what you need to know
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As an employer one of your responsibilities is to provide a Record of Employment (ROE) to your employees when employment ends, whether temporarily or permanently. Service Canada uses the ROE to determine whether a worker is eligible for employment insurance benefits, and there are rules around how and when to issue the ROE.
What is included in an ROE?
The ROE contains information about the worker's employment, such as:
- Information on the employee
- Information on the employer
- The period of employment
- The reason for employment ending
- The gross salary of the employee
- The total number of insurable hours worked
- Deductions and withholdings
Why issue an ROE
An ROE must be issued whenever employment ends, regardless of whether it was ended by the employer or employee. An ROE should also be issued when an employee experiences an interruption of earnings of more than one week – i.e., when an employee is laid off.
You may be asked to provide an ROE by Service Canada. For example, if an employee has more than one job, and they experience an interruption of earnings in their other job, Service Canada will also need information from you on the employee’s hours and earnings.
More information on interruption of earnings can be found on the government site.
How to issue an ROE
There are two ways to issue an ROE: electronically or on paper.
You can issue an electronic ROE one of three ways:
- By entering the information into “My Account” on the Service Canada site and submitting them via the ROE Web portal.
- By using a payroll application that is compatible with ROE Web.
- By using the Secure Automatic Transfer Service via a payroll application. Typically, this is used by larger businesses.
If you need to order paper copies of the ROE form, you can call the Government of Canada Employer Contact Centre at 1-800-367-5693. When placing your order, you will need to provide the following information:
- Your CRA payroll account number
- Your CRA business number
- The postal code that is associated with the business number
Once you receive the paper ROEs, you will need to complete 3 copies:
- One is provided to the employee for them to use to make their EI claim
- Mail the second copy to Service Canada (Service Canada, PO Box 9000, Bathurst, NB, E2A 4T3)
- Keep the third copy for your records
Deadline for issuing an ROE
If you issue an ROE on paper, then it must be issued within 5 calendar days of:
- The first day of an interruption of earnings, or
- The day the employer becomes aware of an interruption of earnings.
If you issue an ROE electronically:
Your pay period is weekly, biweekly, or semi-monthly: within 5 calendar days after the end of the pay period in which the interruption of earnings occurs.
Your pay period is monthly, or there are 13 pay periods per year, you must issue the ROE by whichever date is the earlier:
- 5 calendar days after the end of the pay period in which the interruption of earnings occurs, or
- 15 calendar days after the first day of the interruption of earnings.
Important note: penalties if an ROE is not issued
Not issuing an ROE when required can have legal consequences. An employer could be subject to a fine up to $2,000, jail time of up to 6 months, or both. Employers may also be liable for damages to the employee for any inconvenience they caused.
Tips for completing the ROE
To correctly complete the ROE, you must understand the legal requirements and the specific details of the situation. When completing the ROE, use the following resources:
- The guide How to complete the Record of Employment
- Payroll applications that are compatible with electronic ROEs
- Accounting/payroll services to guarantee the accuracy of the information provided.
Where can I find more information?
- ROE Web User Guide
- Employer Contact Centre – for inquiries and guidance regarding ROEs
- Summary chart – Type of earnings, insurable/non-insurable earnings and hours, and pay-period allocation
CFIB members can contact our Business Advisors with any questions at 1-833-568-2342 or firstname.lastname@example.org
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