In Canada, Records of Employment (ROEs) are essential payroll documents that employers must manage. Whether you are an employer or an employee, understanding ROEs can be challenging. Misunderstandings can lead to delays in benefits, fraud, or severe financial penalties.
Record of Employment (ROE) Services in Canada
Let’s delve into the details of ROEs from both employee and employer perspectives to address all your questions about records of employment in Canada.
What does ROE Stand For?
ROE stands for Record of Employment. This document is issued by employers to the Canadian federal government to indicate an interruption in a worker’s earnings, documenting their wages, hours, and length of employment. Accessing an ROE is crucial when workers apply for Employment Insurance (EI) benefits.
What is a Record of Employment?
An ROE is a form issued by employers to workers who experience an interruption in insurable earnings. Reasons can include business closure, layoffs, dismissals, maternity leave, long-term leaves, injury, and other specific scenarios. Employers must issue an ROE within specified deadlines after a work interruption, as mandated by the Canada Revenue Agency (CRA). This is a federal document and does not vary between provinces.
Employers can choose between a paper or electronic ROE. Using the ROE web service to issue a digital record is recommended due to its benefits for both the business and the worker. Without accurate ROEs from the past 52 weeks, employees are not eligible for EI benefits. Employers who fail to file accurate or timely ROEs can face consequences and financial penalties.
What is an ROE Form?
An ROE form can be an electronic report filled out on the Service Canada ROE web services page or a paper document. The format and fields to complete are the same for both versions.
What Does an ROE Look Like?
An ROE is divided into “blocks,” with each block containing essential information about a worker’s time, hours, and wages at the company. There are 22 blocks in total, including:
- Employee’s personal and identifying information
- Period of employment information
- Insurable hours worked and insurable earnings
- Pay periods
- Reference Number and the company’s Business Number
- Reason for dismissal (ROE code)
Not all blocks need to be filled out, but employers should complete as many as possible to avoid follow-up questions from Service Canada. For a detailed guide on the ROE form blocks, visit the Service Canada website.
What Does Dismissal Mean on ROE?
When filling out an ROE, employers must select a code to explain the interruption of earnings. Common codes include:
- Code A: Shortage of work (layoff)
- Code D: Illness or injury
- Code E: Quitting
- Code F: Maternity
- Code M: Dismissal
Code M (Dismissal) should be used when an employee is terminated for reasons other than layoff or mandatory retirement, typically with cause. Employers must provide accurate reasons for dismissal to avoid disputes and potential legal issues.
Where to Get a Record of Employment
Employers are responsible for issuing an ROE when there is a qualified interruption of earnings. Employees do not need to request it. ROEs can be obtained in two ways:
- Paper copy: Provided by the employer and submitted to Service Canada.
- Electronic copy: Submitted directly to Service Canada and accessible online through My Account on Service Canada.
When to Issue an ROE
Employers must issue an ROE whenever there is an interruption of insurable earnings or when requested by Service Canada. Common instances include when an employee quits, is fired, or laid off, as well as when there is a seven-day interruption in work or a drop in salary below 60% due to illness, injury, pregnancy, or caring for a family member.
Where To Get Paper ROE Forms
Employers using paper ROE forms must order them from the government and keep them secure. It is advisable to switch to online ROE web services to reduce the risk and administrative burden.
Where to Send ROE
Electronic ROEs are sent directly to Service Canada. Employers may provide a courtesy copy to employees. Paper ROEs must be given to the employee and sent to Service Canada, either by mail or in person. The serial number indicates the type of ROE: electronic starts with W or S, paper with A, E, K, L, or Z.
Get Personalized ROE Help From the Experts
Navigating ROEs can be complex. Workers struggling with ROEs can seek help from accountants or contact Service Canada. Business owners uncertain about ROE requirements can consult with Ghumans & Associates for outsourced payroll services. Contact Ghumans & Associates to learn more about managing employment income, ROEs, and payroll obligations.