We are currently paid for 204 days (9 ¼ months), at an hourly rate for

Transcription

We are currently paid for 204 days (9 ¼ months), at an hourly rate for
We are currently paid for 204 days (9 ¼ months), at an hourly rate for 7 hours daily. These paid days include: 188 instructional days, 6 PD days, and
10 statutory holidays. Vacation pay is included in the bi-weekly gross earnings. The hourly rate and vacation pay are dependent on years of service.
Typically, there are 3 lay-off periods (Christmas, March Break and summer) when you are eligible to apply for EI benefits.
Some Members dislike dealing with Service Canada and claiming EI benefits during lay-off periods. Some Members accept the EI application process
as a routine matter and never experience a problem.
Some alternate options for payment are easily explained and some are more complicated. The options would be slightly different for year round
schools but basically the same concept. We are asking you to review the following methods, keeping in mind that everyone’s financial situation is
different.
A. The Current Method of Payment:
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current gross pay is issued bi-weekly; based on 7 hours per day at your personal rate of pay
vacation pay is included in each bi-weekly pay
204 paid days, 9 ¼ months
EI benefits are optional for all 3 lay-off periods
B. (9 ¼ over 12) Method of Payment:
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current gross pay would be issued bi-weekly; based on 7 hours per day at your personal rate of pay
vacation pay would be included in each pay
the difference is: your total gross earnings for the year are spread out equally over 26 pay periods (12 months)
there would be no lay-off periods; no eligibility for EI benefits
C. Use Vacation Pay for Layoff Periods:
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gross pay would be issued bi-weekly; based on 7 hours per day at your personal rate of pay
vacation pay is not included in each pay but is the amount used for pay at Christmas, March Break and the first week of July (exclusive of
statutory holiday pay)
eligibility for EI benefits for the remaining summer period
D. Deferred Income:
 gross earnings, including vacation pay over the 9 ¼ months September to June
 each monthly gross pay from September 1 to June 30 would be one twelfth (1/12) of gross earnings
 deferred balance of earnings would be paid biweekly in July and August in equal amounts
 EI benefits are optional for all 3 lay off periods
Note: Calculations for the following examples are based on the rate of pay for a Member at Level 3 Step 5 with 8% vacation pay. The EI calculations
are based on the 2013/14 calendar year and are meant only to provide an example for comparative purposes. Individual amounts would depend on
the waiting period start of a claim. These figures are for illustrative purposes only.
Option
A: current
Daily rate
$206.69
Biweekly
Number of
paid days
Gross
earnings
204
$42,165
$2,066.90
EI
Total
paid days /
amount
Gross + EI
46 = $4,462
$46,627
method
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B: current
pay over 12
months
$162.17
C: use
vacation pay
for lay-off
periods
$191.38
D: deferred
Comments
$1,621.70
26 pay
periods
$42,165
220.35
$42,165
$1,913.80
0
$42,165
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30 = $2,910
$45,075
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see below
$1,756.88
204
$42,165
46 = $4,462
$46,627
income
model
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Gross Earnings = $42,165
Monthly Basic Pay = $42,165/12 = $3,513.75
Salary Earned per Day = $42,165/204 = $206.69
Based 18 working days:
$206.69 per day X 18

$3,720.42
Less Monthly Basic Pay -3,513.75
$206.67 → deferred balance to be paid in equal amounts in July and August
July and August → $206.67 X 10 months= $2,066.70
Hourly rate includes vacation
pay
3 EI claims annually
Hourly rate including vacation
pay
Not eligible to EI claim
Hourly rate, vacation pay for
Christmas, March Break &
4.35 July days (average total
16.35 days)
Only 1 EI claim annually
(remainder of July & August)
Hourly rate includes vacation
pay
3 EI claims annually
Forced savings plan for
summer income