Many of our customers have asked us whether they are eligible to claim TERS and how it works. Although everyone has access to the Gazette and other official documents, people often want re-assurance that they are “on the right track”. There is also an information overload, with many websites and businesses offering advice. I have tried to sum up the most common questions we have been asked, and to explain it in laymen’s terms:
Yes. The employer is entitled to keep the TERS benefit if the employee had already been paid in full. However, the employer has to give the employee a leave credit which is equivalent to the TERS benefit. The rationale behind this is that although the employee did not lose income, she/he lost leave which has a monetary value. Also keep in mind that the TERS benefit is an after-tax value. For purposes of calculating the equivalent leave credit, the TERS benefit would have to be converted to a pre-tax value.