ROE Guide: How to Complete a Record of Employment
The Record of Employment is the most consequential payroll form a Canadian employer files. It determines whether your former employee receives EI, how much and for how long, and it is the form Service Canada scrutinises most closely. This guide covers every block, the reason codes in Block 16, deadlines, separation payments, common errors and what happens when you get it wrong.
What an ROE Is, and Why the Employer Carries the Risk
A Record of Employment is the form an employer completes whenever an employee experiences an interruption of earnings. Service Canada uses it to decide whether that person qualifies for Employment Insurance, what their weekly benefit rate is and how long they can collect. The employee cannot apply for EI without it, and they cannot correct it. Only you can.
That asymmetry is the reason ROEs generate so much friction. The employee's household income depends on a form they have no control over, filed by an employer they may have just parted with on bad terms. Service Canada knows this, which is why the ROE is one of the most investigated payroll documents in the country and why the reason code in Block 16 receives more scrutiny than any other field on any payroll form.
The obligation is not discretionary. You must issue an ROE for every employee with an interruption of earnings, regardless of whether they quit, were dismissed for cause, are a family member, or have told you they do not intend to claim EI. Whether the person deserves EI is Service Canada's decision, not yours. Your only obligation is to report accurately and on time.
The Most Common Employer Mistake: Withholding an ROE because you believe the former employee should not receive EI. This is not permitted, it does not stop the claim, and it converts a routine filing into a Service Canada complaint against you. If you disagree with the separation circumstances, you record them accurately in Block 16 and let Service Canada adjudicate.
What Triggers an ROE: Interruption of Earnings
The ROE obligation is triggered by an interruption of earnings, not by termination. This distinction catches employers out, because several situations that are not terminations still require an ROE.
The Seven-Day Rule
An employee has seven consecutive calendar days with no work and no insurable earnings from you. This covers layoffs, quits, dismissals and unpaid leaves of absence.
The clock runs on calendar days, not working days, and it applies whether or not the separation is permanent.
The 60% Rule
Weekly earnings fall below 60% of normal because of illness, injury, pregnancy, parental leave, compassionate care or family caregiver leave.
The employee remains employed but the drop in earnings itself creates the interruption and the ROE obligation.
Separation Events
Termination, layoff (temporary or permanent), quit, retirement, end of a fixed-term contract, or the death of an employee.
These almost always produce a seven-day interruption, so the ROE follows automatically.
| Situation | ROE Required? | Notes |
|---|---|---|
| Employee laid off (temporary or permanent) | Yes | Code A. Recall date in Block 14 where known. |
| Employee quit | Yes | Code E. The reason does not remove the obligation. |
| Employee dismissed for cause | Yes | Code M. Service Canada adjudicates, not you. |
| Employee on maternity or parental leave | Yes | Earnings drop below 60% triggers the ROE. |
| Employee on unpaid leave of absence | Yes | Code N once the seven-day interruption occurs. |
| Employee off due to illness or injury | Yes | Code D. May qualify for EI sickness benefits. |
| Employee retires | Yes | Code G. Retiring allowance goes in Block 17C. |
| Employee dies | Yes | Report earnings and hours to the date of death. |
| Family member on payroll | Yes | Confirm the employment is EI-insurable in the first place. |
| End of a fixed-term contract | Yes | Code A. |
| Employee says they will not claim EI | Yes | Their intention is irrelevant to your obligation. |
| Employee changes job title or department, pay unchanged | No | No interruption of earnings. |
| Hours reduced but earnings stay above 60% of normal | No | Threshold not met. |
Not a Trigger: A change in job title, a pay cut, a transfer between departments, or a shift from full-time to part-time hours that does not drop earnings below the 60% threshold. Employers sometimes issue unnecessary ROEs for these, which creates confusion in the employee's EI file. When in doubt, ask before you file.
Block-by-Block: What Goes Where on the ROE
The ROE has 22 blocks. Most are administrative, a handful carry real risk. The table below covers each block with the fields that most commonly cause problems highlighted.
| Block | What It Contains | Notes and Common Errors |
|---|---|---|
| Block 1: Serial number | Assigned by Service Canada or the ROE Web system | Needed when amending. Keep a record of every serial number issued. |
| Block 2: Serial number of amended ROE | The original serial number when you are correcting a prior ROE | Leave blank on an original. Filing a second original instead of an amendment creates duplicate records. |
| Block 3: Employer payroll reference | Your internal employee number | Optional but useful for matching Service Canada correspondence to your records. |
| Block 4: Employer name and address | Legal name of the employing entity | Must match the CRA payroll account. Operating names cause matching failures. |
| Block 5: CRA payroll account number | Your 15-character RP account | If you have multiple RP accounts, use the one the employee was actually paid from. |
| Block 6: Pay period type | Weekly, biweekly, semi-monthly, monthly, 13 pay periods per year | Determines how many pay periods you report in Blocks 15B and 15C. Getting this wrong invalidates the earnings blocks. |
| Block 7: Postal code | Employer postal code | Straightforward. |
| Block 8: Employee SIN | Social Insurance Number | Must be accurate. A wrong SIN stops the claim entirely. |
| Block 9: Employee name and address | Last known address | Use the address on file even if the employee has moved. |
| Block 10: First day worked | First day of the current period of employment | Not the original hire date if there was a prior ROE. It is the first day since the last interruption. |
| Block 11: Last day for which paid | Last day the employee had insurable earnings | Not the termination date if the employee was paid beyond it. Not the date the final cheque was issued. |
| Block 12: Final pay period ending date | End of the pay period containing the last day paid | Must align with Block 11 and your pay period type. |
| Block 13: Occupation | Employee's job title | Optional. |
| Block 14: Expected date of recall | Recall date for a temporary layoff | Enter "unknown" or "not returning" where applicable. An optimistic recall date that does not materialise causes problems for the employee. |
| Block 15A: Total insurable hours | Insurable hours in the required consecutive pay periods | Determines whether the employee qualifies for EI at all. The most consequential number on the form. |
| Block 15B: Total insurable earnings | Insurable earnings in the required consecutive pay periods | Must include vacation pay and statutory holiday pay correctly. |
| Block 15C: Insurable earnings by pay period | Period-by-period breakdown, most recent first | Mandatory for electronic ROEs. Drives the best-weeks benefit calculation. |
| Block 16: Reason for issuing | Single-letter reason code | The most scrutinised field on the ROE. See the reason code table below. |
| Block 17A: Vacation pay | Vacation pay paid or payable on separation | Treatment depends on how and when it was paid. Affects when EI benefits start. |
| Block 17B: Statutory holiday pay | Statutory holiday pay after the last day paid | Reported with the specific dates. |
| Block 17C: Other monies | Severance, retiring allowance, pay in lieu of notice, bonuses | Service Canada allocates these, which delays the start of benefits. Reporting them as insurable earnings instead is a serious error. |
| Block 18: Comments | Free-text explanation | Use sparingly. Comments invite scrutiny. Required when using Code K. |
| Block 19: Paid sick / maternity / parental / group insurance | Certain payments after the last day paid | Applies to specific top-up and insurance arrangements. |
| Block 20: Communication preference | English or French | Straightforward. |
| Block 21: Telephone number | Contact number for the person who completed the ROE | Service Canada will call this number if the ROE is questioned. Use a number that is actually answered. |
| Block 22: Certification | Signature of the issuer | Certifies the information is true. This is what creates personal exposure for knowingly false information. |
Block 16 Reason Codes: The Field That Causes the Disputes
Block 16 tells Service Canada why the employment ended. It is the field employees contest, the field Service Canada investigates and the field employers most often get wrong, usually by reaching for a code that feels diplomatic rather than the code that is accurate.
| Code | Reason | When to Use It | EI Impact for the Employee |
|---|---|---|---|
| A | Shortage of work / End of contract or season | Layoffs (temporary or permanent), end of a fixed-term contract, seasonal end. The most common code by a wide margin. | Does not disqualify. Straightforward claim. |
| B | Strike or lockout | Work stoppage due to a labour dispute | Generally not eligible for the duration of the stoppage. |
| D | Illness or injury | Employee unable to work due to illness, injury or quarantine | May qualify for EI sickness benefits. |
| E | Quit | Employee voluntarily resigned | Generally disqualified unless the employee shows just cause. |
| F | Maternity | Interruption due to pregnancy | May qualify for maternity benefits. |
| G | Retirement | Employee retired | Depends on circumstances. Mandatory vs voluntary retirement is treated differently. |
| H | Work sharing | Participation in a Service Canada Work-Sharing agreement | Specific program rules apply. |
| J | Apprentice training | Employee attending approved apprenticeship training | Specific rules apply. |
| K | Other | Only when no other code fits. Requires a comment in Block 18. | Invites Service Canada follow-up. Avoid unless genuinely necessary. |
| M | Dismissal | Employer terminated the employment for cause | May be disqualified if Service Canada finds misconduct. |
| N | Leave of absence | Approved unpaid leave | Depends on the nature of the leave. |
| P | Parental | Interruption for parental leave | May qualify for parental benefits. |
| Z | Compassionate care / Family caregiver | Leave to care for a critically ill family member | May qualify for the corresponding special benefits. |
The Code K Trap: Employers frequently use Code K to avoid choosing between Code E (Quit) and Code M (Dismissal), typically when a separation was negotiated, or when the employer wants to avoid a confrontation. This is the worst available option. Code K requires a written comment, flags the file for review, and often produces exactly the Service Canada call the employer was trying to avoid. Please use the code that describes what actually happened.
Separation Payments: Where They Go and Why It Matters
Separation payments are reported in Block 17, not as insurable earnings in Block 15. This is not a formatting preference. Service Canada allocates Block 17 amounts to a period following the separation, which delays when the employee's benefits start. Reporting severance as insurable earnings instead inflates the benefit rate and understates the delay, and Service Canada will find it.
| Payment Type | Where It Is Reported | Effect on the Employee's Claim |
|---|---|---|
| Regular wages and overtime | Blocks 15A, 15B, 15C as insurable earnings | Determines qualification and benefit rate |
| Vacation pay paid on each cheque | Included in insurable earnings as paid | No separate allocation on separation |
| Vacation pay paid as a lump sum on separation | Block 17A | Allocated by Service Canada. Delays benefit start. |
| Statutory holiday pay after the last day paid | Block 17B with the specific dates | Allocated to those dates |
| Severance pay | Block 17C (other monies) | Allocated. Delays benefit start, sometimes by months. |
| Pay in lieu of notice | Block 17C | Allocated to the notice period |
| Retiring allowance | Block 17C | Generally not EI-insurable. Has separate tax treatment. |
| Bonus paid on separation | Block 17C | Allocated |
| Wrongful dismissal settlement | Block 17C | Allocated. May require an amended ROE if paid after the original filing. |
Why Employees Complain About This: An employee who receives a severance package often does not realise their EI will not start until the allocation period ends. They see the ROE, see the delay, and assume the employer filed it incorrectly. The allocation is Service Canada's, not yours, but accurate Block 17 reporting is what lets you demonstrate that.
ROE Deadlines and Filing Methods
ROE Web is Service Canada's electronic filing system and it is the practical default for most employers. It offers a longer deadline than paper, removes the requirement to give the employee a copy, and creates a retrievable record. Payroll platforms such as Wagepoint can transmit ROEs directly from your existing payroll data.
| Filing Method | Deadline | Copy to Employee? | Notes |
|---|---|---|---|
| ROE Web (electronic) | Generally five calendar days after the end of the pay period in which the interruption occurred | Not required. Employee views it in My Service Canada Account | The standard method. Longer deadline than paper. |
| Payroll software (e.g. Wagepoint) | Same as ROE Web | Not required | Pulls hours and earnings from payroll data, reducing entry errors in Blocks 15A-15C |
| Paper ROE | Shorter window than electronic. Please confirm the current requirement before relying on paper | Yes. Employee copy must be provided | Increasingly uncommon. Requires ordering forms from Service Canada. |
The Deadline Is Not Negotiable: A late ROE delays your former employee's EI, which is when complaints get filed. Failure to issue an ROE, or issuing one that is knowingly false or misleading, can attract penalties under the Employment Insurance Act: up to $2,000 per offence, and in serious cases fines up to $5,000 plus up to six months' imprisonment. Please confirm current penalty amounts, but treat the deadline as hard regardless.
What ROE Errors Actually Cost: Worked Examples
ROE errors rarely produce a tax assessment. They produce something employers find worse: a Service Canada investigation, a former employee with a grievance and a documentation request that lands on your desk months later.
Scenario 1: Severance Reported as Insurable Earnings
A Toronto construction company terminates a supervisor and pays $24,000 in severance. The bookkeeper reports the severance in Block 15B as insurable earnings rather than Block 17C, which inflates the reported earnings and produces an incorrect benefit rate.
Correct treatment: $24,000 reported in Block 17C. Service Canada allocates it to a period following the separation, and EI begins after that allocation period ends.
What happens: Service Canada identifies the mismatch against the T4 and payroll records, requests documentation, and the employer files an amended ROE. The employee's benefits are recalculated and any overpayment is recovered from them, producing a second complaint, this time against the employer who reported it wrong.
Result: Amended ROE, Service Canada file review, employee overpayment recovery and a damaged relationshipScenario 2: Code K Used Instead of Code A
A Mississauga logistics company lays off four drivers due to a lost contract. Wanting to avoid the word "shortage," the office manager uses Code K (Other) with the comment "restructuring."
Correct treatment: Code A (Shortage of work / End of contract). This is a textbook Code A layoff and does not disqualify the employees.
What happens: Code K flags all four files for review. Service Canada calls the number in Block 21 for each one. Four straightforward claims become four investigations, the employees' benefits are delayed, and the employer spends a week on calls that Code A would have avoided entirely.
Result: Four delayed claims, four Service Canada calls, zero benefit to the employerScenario 3: ROE Filed Correctly and On Time
An Oakville professional firm ends a fixed-term contract. Payroll issues the ROE through Wagepoint within the deadline: Code A, insurable hours pulled from the payroll system, vacation pay lump sum reported in Block 17A, no Block 18 comment.
What happens: The employee applies for EI, Service Canada has the ROE on file already, and the claim processes without a call to the employer.
Result: No investigation, no amendment, no employer time spent. That is the outcome correct filing buys youThe Ten Most Common ROE Errors
| # | Error | Consequence |
|---|---|---|
| 1 | Not issuing an ROE because the employee quit or was fired | Service Canada complaint. The obligation is independent of the reason. |
| 2 | Using Code K to avoid choosing between quit and dismissal | Mandatory comment, file flagged, Service Canada call. |
| 3 | Reporting severance as insurable earnings instead of Block 17C | Wrong benefit rate, amended ROE, employee overpayment recovery. |
| 4 | Wrong Block 11 (last day paid), using the termination date instead | Misaligned pay periods, incorrect Block 15C. |
| 5 | Wrong pay period type in Block 6 | Invalidates the number of periods reported in 15B and 15C. |
| 6 | Insurable hours understated or omitted in Block 15A | Employee may be found not to qualify at all. |
| 7 | Vacation pay treatment inconsistent with how it was actually paid | Incorrect allocation, delayed or accelerated benefits. |
| 8 | Filing a second original instead of an amendment | Duplicate records in the employee's file. |
| 9 | Missing the filing deadline | Delayed claim, employee complaint, potential penalty. |
| 10 | Unnecessary Block 18 comments | Comments invite scrutiny that the file would not otherwise attract. |
How We Prevent These: For every payroll client, we track interruption-of-earnings events as they occur rather than reconstructing them later, pull hours and earnings directly from the payroll system rather than re-keying them, select the Block 16 code based on the documented facts of the separation, and file electronically within the deadline. If Service Canada calls, we respond. Payroll Services →
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