Which of the following is true of Employment Insurance program?Question 6Answera.It applies to workers who are self-employed.b.It is not included in taxable income.c.It is funded entirely by contributions from the employer.d.It is payable even if an employee quits without good reason.e.It provides temporary income to employees during adoption leave period.
Question
Which of the following is true of Employment Insurance program?Question 6Answera.It applies to workers who are self-employed.b.It is not included in taxable income.c.It is funded entirely by contributions from the employer.d.It is payable even if an employee quits without good reason.e.It provides temporary income to employees during adoption leave period.
Solution
The Employment Insurance program has several features, but not all the options provided in your question are accurate. Here's a breakdown:
a. It applies to workers who are self-employed: This is partially true. Self-employed workers can opt into the Employment Insurance (EI) program for access to special benefits, but they are not automatically covered as regular employees are.
b. It is not included in taxable income: This is false. Employment Insurance benefits are considered taxable income, and recipients will receive a T4E tax slip for their income tax return.
c. It is funded entirely by contributions from the employer: This is false. The EI program is funded by premiums paid by both employers and employees. Employers actually contribute 1.4 times the amount of the employee's premium.
d. It is payable even if an employee quits without good reason: This is false. To be eligible for EI benefits, an individual must have lost their job through no fault of their own, such as due to layoffs or shortage of work. If an employee voluntarily leaves their job without just cause, they may not be eligible for EI.
e. It provides temporary income to employees during adoption leave period: This is true. The EI program provides benefits to individuals who are away from work because they're pregnant, have recently given birth, are adopting a child, or are caring for a newborn.
So, the correct answer is e. It provides temporary income to employees during adoption leave period.
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