Record of Employment (ROE): When and How to File in Canada

If you run payroll in Canada, you already know that one late or incorrect Record of Employment (ROE) can trigger a CRA follow-up, delay an employee's EI benefits, and waste hours of your team's time. The ROE is the form that tells Service Canada why someone stopped working and what insurable hours and earnings they accumulated. Every employer that pays insurable earnings must issue ROEs for employees who experience an interruption of earnings. Getting it right matters, but the rules around timing, codes, and submission methods are detailed enough to trip up even experienced payroll staff.

This article walks through the key filing requirements for a record of employment ROE in Canada: who needs one, when to issue it, how to fill out the blocks accurately, and what happens if you miss a deadline. We also look at how Canadian accounting firms, small businesses, and municipalities can streamline ROE management with payroll software that handles the paperwork automatically.

Table of Contents

• Who Needs an ROE and When Must You Issue It?
• How to Complete the ROE: Block-by-Block Guidance
• ROE Submission Methods: Paper vs Electronic
• Common ROE Errors and How to Avoid Them
• Frequently Asked Questions About ROE Filing
• What to Do Next

Who Needs an ROE and When Must You Issue It?

A Record of Employment is required for every worker in insurable employment who experiences an interruption of earnings. That includes full-time, part-time, casual, and seasonal employees. Even if you run a small town's municipal payroll or manage a handful of staff at a local shop, the obligation is the same.

You must issue an ROE within 5 calendar days after the later of:

• The end of the pay period in which the interruption of earnings occurs, or
• The date the employee's earnings are interrupted.

Interruption of earnings is defined broadly. It includes:

• Layoff or termination
• Resignation or retirement
• Illness, injury, or parental leave (once the employee stops working)
• A reduction in hours or wages of more than 20% for more than 2 consecutive pay periods

Separate rules apply when an employee is absent due to a strike, lockout, or other work stoppage. In those cases, the ROE is issued within 5 days of the start of the work stoppage.

One tricky distinction: if you pay wages in lieu of notice or severance, the interruption of earnings date is the last day worked, not the last day paid. That affects the ROE's "Last day worked" field.

Insurable hours rules

To complete the ROE correctly, you need to know how many insurable hours the employee worked in each pay period. For most employees, that is the actual hours worked. For salaried employees with no time tracking, you use the deemed hours method: 7 hours per day for weeks worked, with caps at 35 hours per week for periods with regular salary. The CRA has detailed tables, but the key is consistency across pay periods.

How to Complete the ROE: Block-by-Block Guidance

The ROE form has several blocks. Here is a summary of the most important ones:

Block 16 codes are the most common source of errors. For example:

• Code A: Shortage of work (layoff)
• Code B: Strike or lockout
• Code D: Illness or injury
• Code E: Quit
• Code F: Maternity or parental leave
• Code N: Leave without pay (other)
• Code M: Dismissal (other than cause)

If you select the wrong code, Service Canada may contact the employee and you for clarification, delaying benefits. Take time to match the situation to the definition.

Tip for payroll teams: Use a consistent process. Create a checklist that maps each termination reason to the correct code and required documents. Train your team to double-check before submitting.

ROE Submission Methods: Paper vs Electronic

How you submit the ROE depends on your payroll size and systems.

Electronic submission via ROE Web

If you have more than 5 employees, the CRA requires you to submit ROEs electronically using ROE Web. Even if you have fewer, electronic filing is faster and less error-prone. ROE Web is free and allows you to:

• Submit, change, cancel, and print ROEs
• View a list of ROEs you have filed
• Respond to Service Canada requests

To use ROE Web, you need a payroll program that can generate an XML or CSV file compatible with the system, or you can enter data manually online. Manual entry is fine for a few ROEs but becomes tedious for many.

Paper ROE (original green form)

Paper ROEs are still accepted in limited situations: if you have fewer than 5 employees, electronic filing is not mandatory, though it is still recommended. Paper forms must be ordered from Service Canada. They require carbon copies and can be lost or delayed. Once completed, you must give the original to the employee and send a copy to Service Canada within 5 days.

Real-world scenario: A municipal finance department with 15 part-time seasonal workers used paper ROEs for years because "that was how it was always done." Each spring, the manager spent a full day filling out forms by hand and mailing them. After switching to a Canadian payroll platform that integrates with ROE Web, the same task now takes 20 minutes. The system pre-populates insurable hours and earnings from payroll data and submits them electronically with a few clicks.

Common ROE Errors and How to Avoid Them

Even experienced payroll staff make mistakes. Here are the most frequent ROE errors we see:

Incorrect date of interruption

Using the date the employee was paid their last wages instead of the last day worked. For example, if an employee works their final shift on June 10 but receives a severance payment on June 30, the last day worked is June 10. Entering June 30 as Block 11 will cause discrepancies in insurable hours and earnings.

Miscalculating insurable hours

For salaried employees, using actual hours instead of deemed hours. Deemed hours are 7 per day (or 35 per week) for each week of the block of employment, even if the employee worked more or less. The only exception is if the employee was absent without pay for an entire week; that week counts as zero.

Wrong block 16 code

Using "Quit" (code E) when the employee was laid off due to lack of work (code A). The code affects eligibility and waiting periods for EI. When in doubt, review the CRA's ROE Block 16 examples or consult with your payroll provider.

Late filing

The 5-day rule is strict. Late filings can result in a penalty of up to $2,000 per ROE or $5,000 for repeated violations. For a small business with 10 employees, one batch of late ROEs could mean a significant fine.

Manual vs automated workflow comparison:

• Manual: You calculate hours from timesheets, look up deemed hours tables, type data into ROE Web or paper forms, and track deadlines on a spreadsheet. A single transposition error in a 6-digit SIN number can cause a rejection, requiring a phone call to Service Canada.
• Automated: Payroll software like Awditify pulls hours from time tracking or assumes deemed hours automatically, calculates insurable earnings, fills the ROE with the correct codes, and submits to ROE Web via secure API. Alerts remind you when an ROE is due. The whole process takes minutes, not hours.

For accounting firms managing multiple clients or municipalities with complex payrolls, automation eliminates the risk of manual errors and frees up time for higher-value work.

Frequently Asked Questions About ROE Filing

When must an employer issue a Record of Employment?

An employer must issue an ROE within 5 calendar days after the later of the end of the pay period in which the interruption of earnings occurs or the date the earnings are interrupted. Interruption includes layoff, resignation, termination, illness, maternity leave, or a reduction of more than 20% in earnings for over 2 consecutive pay periods.

What happens if I file an ROE late?

Late filing can result in penalties: $25 per day per ROE for the first 3 days, then $50 per day for days 4 through 6, and $100 per day for each day thereafter, up to a maximum of $2,000 per ROE. For repeated offenses, the maximum is $5,000. Additionally, the delay can hold up the employee's EI benefits, which strains your relationship.

Can I change an ROE after it has been filed?

Yes, you can submit a correction or cancellation if you make an error. For electronic ROEs, use the "Change" function in ROE Web. For paper ROEs, cross out the error and write the correct information, then initial and date it. Keep copies for your records.

What is the best way to automate ROE filing?

For Canadian employers, accounting firms, and municipalities, the best approach is to use payroll software that integrates with ROE Web and CRA systems. Awditify's payroll module automatically calculates insurable hours and earnings, maps termination reasons to the correct codes, and submits ROEs directly. It also maintains a complete audit trail, which is essential for compliance.

Do I need to issue an ROE for a leave of absence?

Yes, if the employee takes an unpaid leave of absence (sick leave, parental leave, etc.), you must issue an ROE once the interruption of earnings begins. The code should reflect the reason: F for maternity/parental, D for illness/injury, N for other leave without pay. If the employee returns from leave and resumes insurable hours, you may need to issue a separate ROE at the end.

What to Do Next

ROE filing is a routine payroll task, but the stakes are high. A single mistake can cost money and time, and damage trust with employees. Whether you issue ten or ten thousand ROEs a year, having a reliable, automated process is the best way to stay compliant.

If you are manually calculating insurable hours or still using paper forms, consider upgrading to a dedicated Canadian payroll platform. Awditify's payroll solution handles ROEs alongside T4s, CPP/EI remittances, and year-end filings. For a deeper look at ROE functionality, see the Help Center guide on how to use Payroll ROEs.

Once your ROE process is solid, the next logical step is evaluating your overall payroll software. Read our Best Payroll Software for Canadian Small Business (2026 Guide) to compare options. If you still need to set up HST registration, our step-by-step HST guide covers that too. And for an overview of all payroll features, explore Awditify's payroll capabilities.