Collecting EI in Alberta? Be prepared to pay taxes | CBC News (2024)

FAQs

Collecting EI in Alberta? Be prepared to pay taxes | CBC News? ›

EI is taxable income

If you voluntarily retire and do not intend to look for another job, you are not eligible for EI benefits. This is because you have chosen to leave the workforce, and the purpose of EI benefits is to support individuals actively seeking employment.

EI Premiums

Employees are required to participate in the EI program under most scenarios. 1.63% of the employee's gross income is withheld, and the maximum insurable earnings as of 2023 are $61,500 resulting in a maximum EI contribution of $1,002 by the employee.

Employment Insurance (EI) provides regular benefits to individuals who lose their jobs through no fault of their own (for example, due to shortage of work, or seasonal or mass lay-offs) and are available for and able to work, but can't find a job. Always apply for EI benefits as soon as you stop working.

After you retire, you may decide to return to work for a new employer, or even for yourself. If you become employed and your new employer does not participate in the CAAT Pension Plan, you can continue to collect your CAAT Plan pension, as well as your income from employment.

The Old Age Security Pension is available to any Canadian who has lived in the country for at least ten years and is over the age of 65, even if they did not work. Many payees can get as much as $625 a month depending on age and income status.

For most people, the basic rate for calculating Employment Insurance (EI) benefits is 55% of their average insurable weekly earnings, up to a maximum amount. As of January 1, 2024, the maximum yearly insurable earnings amount is $63,200. This means that you can receive a maximum amount of $668 per week.

All employees must contribute to the CPP and EI plans, however the following situations will exempt an employee from contributing to the CPP plan: Under the age of 18. CPP commences the month following the employee's 18th birthday. At age 70, CPP contributions will cease even though employment may continue.

Contributions to CPP are compulsory for all working Canadians aged 18-70. Employees and employers contribute equally on earnings that are between the Basic Exemption amount and the Year's Maximum Pensionable Earnings (YMPE). In 2023, contributions on those earnings are 5.95% by employees and 5.95% by employers.

The tax rates in Alberta range from 10% to 15% of income and the combined federal and provincial tax rate is between 25% and 48%.

How much can a senior citizen make without paying taxes in Canada? ›

If you're 65 years or older at the end of the tax year, you can claim a non-refundable tax credit towards your federal taxes. To qualify, your net income must be less than $39,826, and the amount you may claim varies depending on your income. For your 2022 tax return, the age amount is $7,898.

For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023; and for heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.

The Employment Insurance (EI) program provides temporary income support to unemployed workers while they look for employment or to upgrade their skills. The EI program also provides special benefits to workers who take time off work due to specific life events: illness. pregnancy.

Employment Insurance (EI) is a government program in Alberta that provides temporary financial assistance to individuals who have lost their jobs through no fault of their own. Provided by Canada's federal government, It is designed to help unemployed workers while they look for new employment or upgrade their skills.

CPP Retirement pension

The Canada Pension Plan (CPP) retirement pension is a monthly, taxable benefit that replaces part of your income when you retire. If you qualify, you'll receive the CPP retirement pension for the rest of your life.

To receive the maximum CPP amount you must contribute to the CPP for at least 39 of the 47 years from ages 18 to 65.

To qualify for a Canada Pension Plan (CPP) retirement pension, you must: be at least 60 years old. have made at least one valid contribution to the CPP.

You can receive EI from 14 weeks up to a maximum of 45 weeks, depending on the unemployment rate in your region at the time of filing your claim and the amount of insurable hours you've accumulated in the last 52 weeks or since your last claim, whichever is shorter.