I am going to prepare T4 for one of my client. She was paying EI from last seven years. Last year due to car accident she applied for EI but it is turned down because she is related to the business owner. Now business owner applied for the refund of EI deducted for her and employer’s portion.
My concern is should I include EI on T4 and T4 summary for this employee as EI is deducted and paid to the CRA every time.
I am sure that this employer will get a refund of EI for this employee.
Please help me.
You have to report the T4 as prepared. CRA will likely automatically adjust your employee’s tax returns once the ruling has been finalized. The adjustment will be limited to the last three tax years from when the ruling was filed.
Thank you Kevin for your assistance.
Based on past experience, after the T4’s have been adjusted, the employer had better request a refund from Revenue Canada
The employer will not get her portion of the EI refunded as that is money that does not belong to the company - it was deducted off her paycheques. Only the Employer portion belongs to the company.
Thank you for the clarification, but how will the employee get her portion?
When she files her income tax return. Any overpayment to CPP or EI will be credited to her, the same as income tax paid.
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When CRA amends the T4’s it will say EI exempt so she will get it back when she files her tax return.