Friends

Any suggestions/pointers which is better option to choose if you are let go of work. lumpsum or salary continuance option .

IMHO its more of a personal choice . AFAIK you cannot claim EI till salary is continued or your total compensation is exhausted ( calculated on monthly salary ) . For e.g if your salary is 1000 $ / month and company gives you 5000 $ than you are not eligible for EI for five initial months .

Second prospective that you should keep in mind is Taxation . If you accept all your compensation now than it will be included in this tax year which may be high Vs salary continuation which will give you tax break on fiscal year .

I think you should consult with your accountant if any or else drop a PM to Pramod Chopra on this board .

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Growing Old Is Mandatory ..Growing UP is Optional

Thx Friend

For the second perspective regarding taxation. I was told the if lumpsum compensation if contributed to RRSP Plan then there would be no taxation.

Thats very true . For the same reason most employees receiving bonus do not withdraw it but put it in RRSP .
Again it depends upon your situation . Do you need money now or in coming months ?? That should dictate your plan .

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Originally posted by MAK1

Thx Friend

For the second perspective regarding taxation. I was told the if lumpsum compensation if contributed to RRSP Plan then there would be no taxation.

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Growing Old Is Mandatory ..Growing UP is Optional