Starting January 2010, self-employed people can pay EI premiums,
and qualify to receive certain EI benefits. Bill C-56, the Fairness
for the Self-Employed Act, received Royal Assent on
December 15, 2009. This legislation allows self-employed persons to
pay EI premiums on a voluntary basis, in order to qualify for EI
special benefits, including
maternity benefits (maximum 15 weeks, a claim can
start up to 8 weeks before the expected birth date)
parental/adoptive benefits (maximum 35 weeks),
sickness benefits (maximum 15 weeks, and
compassionate care benefits (maximum 6 weeks)
Under the legislation, prior to claiming
benefits, self-employed Canadians:
are required to opt into the program at least
one year prior to claiming benefits
need to have earned a minimum of $6,000 in
self-employed earnings (net income from self-employment) over the
preceding calendar year
can opt out of the EI program at the end of any
tax year, as long as they have never claimed benefits.
must contribute on self-employed earnings
for as long as they are self-employed, if they have claimed benefits.
will pay the same EI premium rate as salaried
employees.
will not pay the employer portion of EI premiums,
in recognition of the fact that they cannot collect regular EI
benefits.
The program has a start date of January 2010,
so claims could be made as early as January 2011.
Self-employed Québec residents will still receive
maternity and parental benefits through the Québec Parental Insurance
Program (QPIP) provided through the Québec government. They will also be eligible to take advantage of the EI sickness and compassionate
care benefits being offered by the Government of Canada. If they opt
into this program, their premium rates will be the same as the rates for
employees in Québec.
The information on this site is not intended to be a
substitute for professional advice. Each person's situation differs, and
a professional advisor can assist you in using the information on this web
site to your best advantage.
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