EI Clawback and RRSP deduction

Technical question*

Taxpayer received employment insurance, which has a repayment rate of 30%.

He was employed for part of the year and received a severance - income around $78,000.

Made an RRSP contribution in the year. When the RRSP deduction is used it decreases his net income, therefore, decreasing his EI clawback.

(EI clawback is 30% on any dollar above the base rate - $64,625)

I am curious if this is common and if there are any issues with that?

Thanks kindly

That seems reasonable to me, clawback is based on Net Income.

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There are no issues with using RRSP contributions to reduce income levels to reduce the EI clawback.
We have had many clients use this tax strategy in the past when getting large retirement or severance pay-outs. This is a perfectly acceptable.
Hope this helps.
Happy Easter.

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