Vacation Pay in PP 50 Vacation Allocation & EI Reporting

Brothers & Sisters,

It is important to report all vacation pay issued in PP 50 properly to Service Canada. As failing to do so creates EI overpayments, which if not corrected can possibly lead to penalties and fraud charges.  

If your vacation pay is more than 40 hours in PP 50 : Calculate each week of vacation allocation thereafter, in blocks up to 40 hours until all hours have expired.

Calculation (Hourly Rate + .03 Cola x 40 (max)=Weekly Allocation $Amount

Example #1 : John has an hourly rate (HR) of $42.39 & remaining vacation entitlement of 88 hours is paid out in lump sum of $3,732.96 gross income in PP 50.

His Allocation and EI reporting would be as follows:

PP 50 – 40 hours vacation (HR $42.39 + COLA$ 0.03 = $ 1,697.60) No EI/SUB

EI Report –40 hours with earnings of $1,697.00 gross earnings for week of Sunday Dec 1^st through to Saturday Dec 7^th, 2024

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PP51– 40 hours vacation (HR $42.39 + COLA$ 0.03 = $1,697.60) No EI/SUB

EI Report –40  hours with earnings of $1,697.00 gross earnings for week of Sunday Dec 8^th through to Saturday Dec 14^th , 2024

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*PP 52 – 8 hours vacation (HR $42.39 + COLA$ 0.03 = $339.36) * EI/SUB

EI Report – 8 hours with earnings of $339.00 gross earnings for the week of Sunday Dec 15^th through to Saturday December 21^st , 2024

Note: *PP 52 -Between all sources of income (EI/SUB/Vacation pay) John will receive 70% of his 40-hour work week.

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Example #2 : Jane has an hourly rate (HR) of $43.66 & remaining vacation entitlement of 164 hours is paid out in lump sum of $7,165.16 gross income in PP 50

Her Allocation and EI Reporting would be as follows:

PP 50 – 40 hours vacation (HR $43.66 + COLA$ 0.03 = $ 1,747.60) No EI/SUB

EI Report –40 hours with earnings of $1,747.60 gross earnings for week of Sunday Dec 1^st through to Saturday Dec 7^th, 2024

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PP 51– 40 hours vacation (HR $43.66 + COLA$ 0.03 = $ 1,747.60) No EI/SUB

EI Report –40 hours with earnings of $1,747.60 gross earnings for week of Sunday Dec 8^th through to Saturday Dec 14^th , 2024

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PP 52– 40 hours vacation (HR $43.66 + COLA$ 0.03 = $ 1,747.60) No EI/SUB

EI Report –40 hours with earnings of $1,747.60 gross earnings for week of Sunday Dec 15^th through to Saturday December 21^st , 2024

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PP 1 – 40 hours vacation (HR $43.66 + COLA$ 0.03 = $ 1,747.60) No EI/SUB

EI Report –40 hours with earnings of $1,747.60 gross earnings for week of Sunday December 22nd through to Saturday December 28th , 2024

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PP 2– 4 hours vacation (HR $43.66 + COLA $ 0.03 = $174.76) * EI/SUB

EI Report – 4 hours with earnings of $174.76 gross earnings for week of Sunday December 29th through to Saturday January 4th, 2025

Note: *PP 2 -Between all sources of income (EI/SUB/Vacation pay) Jane will receive 70% of her 40-hour work week.

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If you are outside the country during period of vacation allocation, it is recommended that contact Service Canada directly to report lump sum of vacation for PP 50.

If you need Assistance, with reporting contact a Peer helper in the Unifor Halton Action Centre or Service Canada at 1-800-206-7218

For purposes of  SUB : The company will allocate lump sum payments in blocks of 40 hours until exhausted, to mirror the allocation as indicated in the EI Act and not continue SUB payments until individual would be eligible for an EI Benefit.

It should be noted that during the Christmas Holiday period the Company Human Resources department will have limited staff and any pay issues or SUB payments may be delayed during this period.

In Solidarity,