EI Benefits for Self-Employed -- Reflections Accounting

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Employment Insurance Measures for Self-Employed People

Service Canada has posted a FAQ on the topic of the new EI program for self-employed people. I have read it over, and here are the highlights.

The program is voluntary. Each self-employed person, whether a proprietor or the owner of a corporation, chooses if he or she will participate in the program.

The program extends EI Special Benefits to the self-employed. Special Benefits are Maternity Benefits (15 weeks), Parental Benefits (35 weeks), Sickness Benefits (15 weeks), and Compassionate Care Benefits (6 weeks). EI regular benefits are benefits available to employees when they lose their jobs through no fault of their own and are available for and able to work, but cannot find a job. Self-employed people cannot access EI regular benefits based on their self-employment.

The self-employed person must participate in the program for 12 full months before being eligible to apply for benefits. Premiums are paid annually on the income tax return. The benefit amount is 55% of the average weekly earnings of the previous year, calculated by dividing the net self-employment income reported on the tax return by 52.

2016 EI premiums are $1.88 per $100 earned. The annual maximum for 2016 is $955.04. The self-employed person pays only the employee portion. The employer portion is not paid.
All money earned while receiving EI special benefits must be declared. Earnings will be deducted from the weekly benefits according to the usual rules. If your business generates income while you are receiving benefits, that income must be declared.

Once opting in to the program, the self-employed person may opt out anytime provided he or she has never made a claim. Once any benefits have been received, the self-employed person may not opt out. They must continue paying EI premiums for as long as they are self-employed. This includes self-employment in a different business.

Read my full report about EI Measures for Self-Employed People.
For more information and to read the complete FAQ, visit www.servicecanada.gc.ca.

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To provide superior accounting services tailored to each client’s unique situation.


Information About Us Tax Information Privacy Policy Contact Us Home	Employment Insurance Measures for Self-Employed People Service Canada has posted a FAQ on the topic of the new EI program for self-employed people. I have read it over, and here are the highlights. The program is voluntary. Each self-employed person, whether a proprietor or the owner of a corporation, chooses if he or she will participate in the program. The program extends EI Special Benefits to the self-employed. Special Benefits are Maternity Benefits (15 weeks), Parental Benefits (35 weeks), Sickness Benefits (15 weeks), and Compassionate Care Benefits (6 weeks). EI regular benefits are benefits available to employees when they lose their jobs through no fault of their own and are available for and able to work, but cannot find a job. Self-employed people cannot access EI regular benefits based on their self-employment. The self-employed person must participate in the program for 12 full months before being eligible to apply for benefits. Premiums are paid annually on the income tax return. The benefit amount is 55% of the average weekly earnings of the previous year, calculated by dividing the net self-employment income reported on the tax return by 52. 2016 EI premiums are $1.88 per $100 earned. The annual maximum for 2016 is $955.04. The self-employed person pays only the employee portion. The employer portion is not paid. All money earned while receiving EI special benefits must be declared. Earnings will be deducted from the weekly benefits according to the usual rules. If your business generates income while you are receiving benefits, that income must be declared. Once opting in to the program, the self-employed person may opt out anytime provided he or she has never made a claim. Once any benefits have been received, the self-employed person may not opt out. They must continue paying EI premiums for as long as they are self-employed. This includes self-employment in a different business. Read my full report about EI Measures for Self-Employed People. For more information and to read the complete FAQ, visit www.servicecanada.gc.ca.	Mission Statement To provide superior accounting services tailored to each client’s unique situation.