Employers would need to determine the amount that they would need to enter in Block 15B for teachers. For this, they would need to calculate the average daily earnings the teacher received. They would need to use the daily averaging formula for accomplishing this. Once they have calculated the average daily earnings, they would need to multiply the amount obtained by the number of calendar days in a 27-week period, which typically equals to 189 days or fewer in case the period of employment is shorter. This amount becomes the teacher’s total insurable earnings. Thereafter, the employer would need to enter the total insurable earnings amount in Block 15B. In addition, the employer would need to add any insurable amounts that the teacher received on account of the separation. For more details on this, the employers would need to go through ‘Block 17: The Separation Payments’.

How to Calculate a Teacher’s Total Insurable Earnings (Block 15B) for the Paper Record of Employment (ROE) (27 Fields)

In some cases, a teacher’s contract might be shorter than 27 weeks. In this scenario, the employer would need to enter the full amount the teacher received in Block 15B. In case the teacher’s contract is longer than 27 weeks, the employer would need to use the daily averaging formula for calculating the teacher’s total insurable earnings.

Note:

• When employers complete the paper Record of Employment (ROE) for teachers, they do not need to complete Block 15C

• However, in case employers use the electronic Record of Employment (ROE) (53 fields), they would need to complete Block 15C

• The next sections provides additional details on this

The following examples illustrate the manner in which employers would need to use the daily averaging formula. It is worth mentioning that one week equals seven calendar days. Similarly, 27 weeks equal 189 days.

Example 1: For One Year Contracts

• Period of the contract: September 01, 2015 to August 31, 2016

• Salary for the duration of the contract: $35,000

• Total calendar days in the contract: 365 days

• For calculating the daily average earnings: $35,000 / 365 days = $95.89

• For calculating the total insurable earnings: $95.89 x 189 days = $18,123.21

In this case, the employer would need to enter the following details on the Record of Employment (ROE):

• Block 6: Weekly

• Block 10: 01 September, 2015 i.e. 01/09/2015

• Block 11: 31 August, 2016 i.e. 31/08/2016

• Block 12: 31 August, 2016 i.e. 31/08/2016

• Block 15B: $18,123.21

Example 2: Two Contracts, One Record of Employment (ROE)

In some cases, the employers might need to combine the average insurable earnings of two contracts on the same Record of Employment (ROE). This would enable them to obtain the total insurable earnings for the last 27 weeks. In this scenario, the employers would need to consider the number of days within the current contract. Then, they would need to add enough days from the preceding contract for reaching 189 days or 27 weeks.

Contract 1

• Period of the contract: September 01, 2015 to August 31, 2016

• Salary for the duration of the contract: $35,000

• Total calendar days in the contract: 365 days

• For calculating the daily average earnings: $35,000 / 365 days = $95.89

Contract 2 (current)

• Period of the contract: September 01, 2016 to August 31, 2017

• Salary for the duration of the contract: $40,000

• Total calendar days in the contract: 365 days

• For calculating the daily average earnings: $40,000 / 365 days = $109.59

In this example, this teacher is leaving on maternity leave. Thus, her last day paid becomes January 13, 2017. To calculate the total insurable earnings, the employers would need to use information from both the contracts to total 189 days or 27 weeks based on the manner depicted below.

• Contract 2: 135 days counting back from the last day paid i.e. January 13, 2017 to September 01, 2016:

  • For calculating the insurable earnings of Contract 2: 135 days x 109.59 = $14,794.65

• Contract 1: 54 days – 189 required total days – 135 days from Contract 2), counting back from the contract end date i.e. August 31, 2016 to July 09, 2016

  • For calculating the insurable earnings of Contract 1: 54 days x $95.89 = $5,178.06

Thus, the total insurable earnings that employers would need to report in Block 15B = $19,972.71 i.e. $14,794.65 from Contract 2 and $5,178.06 from Contract 1

In this case, the employer would need to enter the following details on the Record of Employment (ROE):

• Block 6: Weekly

• Block 10: 01 September, 2015 i.e. 01/09/2015

• Block 11: 13 January 2017 i.e. 13/01/2017

• Block 12: 13 January 2017 i.e. 13/01/2017

• Block 15B: $19,972.71

How to Calculate a Teacher’s Total Insurable Earnings (Block 15B) for the Electronic Record of Employment (ROE) (53 Fields)

When they complete an electronic Record of Employment (ROE), the employers would need to complete both Block 15B and Block 15C.

For this, they would need to use the daily averaging formula that follows this section. By using this formula, the employers would be able to calculate the total insurable earnings that they would need to enter in Block 15B. Similarly, they would need to calculate the insurable earnings by pay period that they would need to enter in Block 15C. It is worth mentioning that the authorities consider one week as being equivalent to seven calendar days.

In Block 15C, the employers would need to report the average weekly insurable earnings that the teacher received during the last 53 weeks or less, in case the teacher worked for a shorter span of time. With the daily averaging formula, the employers would be able to allocate the insurable earnings proportionately over the term of the contract. This is regardless of the basis on which the employers might have paid the insurable earnings.

To calculate the average weekly insurable earnings for teachers, the employers would need to:

• Determine the daily average earnings by dividing the total earnings for the contract period by the total number of calendar days within the contract period and,

• Multiply the daily average earnings by seven for determining the weekly insurable earnings

How to Use the Daily Averaging Formula

Employers will need to carry out certain calculations for entering the amounts in Blocks 15B and 15C. For this, they would need to use the daily averaging formula for calculating the average daily earnings that the teacher received. The daily averaging formula typically comprises the following three steps:

• Adding up all the insurable earnings that the teacher received during the contract period

• Subtracting any insurable amounts the teacher received because of the separation (for more details, employers would need to go through ‘Block 17: The Separation Payments’)

• Dividing the total insurable earning amount by the total number of calendar days in the contract period

  • It is worth mentioning that this amount constitutes the average daily earnings

Note:

• It is worth mentioning that employers cannot use the daily averaging formula for casual or substitute teachers

• This is because casual or substitute teachers do not have a fixed amount of earnings during a predetermined period

The example given below depicts the manner in which the employers would need to use the daily averaging formula when they complete the 53-field electronic Record of Employment (ROE).

Example 1: For One Year Contracts

• Period of the contract: September 01, 2015 to August 31, 2016

• Salary for the duration of the contract: $35,000

• Total calendar days in the contract: 365 days

• For calculating the daily average earnings: $35,000 / 365 days = $95.89

• For calculating the total insurable earnings: $95.89 x 189 days = $18,123.21

At this point, this teacher experiences an interruption of earnings on August 31, 2016. As such, this date becomes the last day for which paid.

In this case, the employer would need to enter the following details on the Record of Employment (ROE):

• Block 6: Weekly

• Block 10: 01 September, 2015 i.e. 01/09/2015

• Block 11: 31 August, 2016 i.e. 31/08/2016

• Block 12: 31 August, 2016 i.e. 31/08/2016

For determining the amount that the employer would need to enter in Block 15C, the employer would need to perform the following calculation:

• The number of calendar days counting back from August 31, 2016 to September 01, 2015 = 365 days

• The number of full calendar weeks -> 365 days / 7 days = 52.14 (52 full calendar weeks plus one day)

The employers would need to use the daily averaging formula for calculating the daily earnings amount. Then, they would need to multiply the daily earnings amount by seven for arriving at the weekly earnings amount. They would need to complete Block 15C with this weekly earnings amount, starting with the full calendar weeks and then the short one day week, as illustrated below:

• Block 15C, PP 1 through PP 52: $671.23 i.e. $95.89 x 7 days – full weeks

• Block 15C, PP 53: $95.89 i.e. $95.89 x 1 day – the first week of work, which has only one day

For determining the total insurable earnings for the last 27 weeks, the employers would need to add up the entries in PP 1 through PP 27 specified in Block 15C. This is the amount that they would need to fill in Block 15B. For calculating this amount, they would need to do as follows:

• Block 15B: $18,123.21 i.e. the amounts specified in PP 1 through PP 27 -> $671.23 x 27 weeks

Example 2: Two Contracts, One Record of Employment (ROE)

In some cases, the employers might need to combine the average insurable earnings of two contracts on the same Record of Employment (ROE). This would enable them to obtain the total insurable earnings for the last 53 weeks. In this scenario, the employers would need to consider the number of days within the current contract. Then, they would need to add enough days from the preceding contract for reaching 53 weeks.

Contract 1

• Period of the contract: September 01, 2015 to August 31, 2016

• Salary for the duration of the contract: $40,000

• Total calendar days in the contract: 365 days

• For calculating the daily average earnings: $40,000 / 365 days = $109.59

Contract 2 (current)

• Period of the contract: September 01, 2016 to August 31, 2017

• Salary for the duration of the contract: $45,000

• Total calendar days in the contract: 365 days

• For calculating the daily average earnings: $45,000 / 365 days = $123.29

In this example, this teacher is leaving on maternity leave. Thus, her last day paid becomes January 13, 2017. In this case, the employer would need to enter the following details on the Record of Employment (ROE):

• Block 6: Weekly

• Block 10: 01 September, 2015 i.e. 01/09/2015

• Block 11: 13 January 2017 i.e. 13/01/2017

• Block 12: 13 January 2017 i.e. 13/01/2017

For determining the amounts that they would need to enter in Block 15C, the employers would need to perform the following calculations:

• The number of calendar days in Contract 2, counting back from January 13, 2017, to September 01, 2016 i.e. 135 calendar days

• The number of calendar weeks in Contract 2 i.e. 135 calendar days / 7 days = 19.29 (19 full calendar weeks plus two days)

• The number of calendar days in Contract 1, counting back from August 31, 2016, to September 01, 2015 i.e. 365 calendar days

• The number of calendar weeks in Contract 1 i.e. 365 / 7 -> 52.14 (52 full calendar weeks plus one day)

Following this, the employers would need to use the daily averaging formula to calculate the daily earnings amount. They would need to multiply the daily earnings amount by seven to get the weekly earnings amount. Thereafter, they would need to complete Block 15C with this weekly earnings amount, starting with the full calendar weeks from Contract 2 and continuing with Contract 1, as shown below:

• Block 15C, PP 1 through PP 19: $863.03 i.e. $123.29 x 7 days

• Block 15C, PP 20: $794.53 i.e. $123.29 x 2 days (the extra two days from Contract 2) plus $109.59 x 5 days (five days from Contract 1)

• Block 15C, PP 21 through PP 53: $767.13 i.e. $109.59 x 7 days

For determining the total insurable earnings for the last 27 weeks to enter in Block 15B, the employers would need to add up the entries in PP 1 through PP 27 in Block 15C as shown below:

• Block 15B: $22,562.01 i.e. the amounts in PP 1 through PP 27