McLarty & Co

Happy Chinese New Year!

Special EI Benefits for the Self Employed

As of the beginning of this year the self-employed can elect to participate in the federal Employment Insurance program for special benefits. The special benefits that will become available to participating self-employed individuals are:
• Maternity
• Parental
• Sickness, and
• Compassionate care.

Maternity benefits are available to birth mothers for a maximum of 15 weeks.

Parental benefits are available to biological or adoptive parents for 35 weeks while they care for a newborn or a newly adopted child.

If someone is sick, injured or quarantined they can be covered by EI insurance for a maximum of 15 weeks.

6 weeks is available to someone who needs to be away from work to care or support a family member who is seriously ill with a significant risk of death.

In order for a self-employed person to make a claim he/she will have to have been participating in the program for at least one year. In addition they will need to have earned at least $6,000 in self-employed earnings in the preceding calendar year.

One advantage for the self-employed is that they will not be required to pay the employer portion of premiums, only the portion normally paid by employees.

Once a self-employed individual makes a claim they will be required to pay EI premiums as long as they are self-employed. Anyone who has not made a claim can opt out of the program at the end of any tax year.

Québec residents who are self-employed are already eligible for maternity and parental benefits through a provincial program. They are eligible for reduced rates if they are interested in participating in the federal program for sickness and compassionate care.