If You're Self-Employed In Canada, Here Are The Government Benefits You Can Avail

Under the Employment Insurance Act, self-employed Canadians and permanent residents¡ªthose who work for themselves¡ªcan apply for EI special benefits if they are registered for access to the EI program.

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What are EI special benefits?

There are six types of EI special benefits:

Maternity benefits are for mothers who give birth. These benefits cover the period surrounding the child's birth (up to 15 weeks).

Parental benefits are for any parent (mother or father) to care for their newborn or newly adopted child or children. The benefits are available to biological, adoptive, or legally recognized parents. There are two options available for receiving parental benefits: standard or extended.

• Standard parental benefits can be paid for a maximum of 35 weeks and must be claimed within 52 weeks (12 months) after the week the child was born or placed for adoption. Standard parental benefits are paid at a weekly benefit rate of 55% of the claimant's earnings from self-employment, up to a maximum amount.
• Extended parental benefits can be paid for a maximum of 61 weeks and must be claimed within 78 weeks (18 months) after the week the child was born or placed for adoption. Extended parental benefits are paid at a weekly benefit rate of 33% of the claimant's earnings from self-employment, up to a maximum amount. Either parent can receive parental benefits or share the benefits between them. If both parents share the benefits, they must accept them under the same option.

Sickness benefits are for people who cannot work due to injury or illness or need to be isolated in quarantine because they may carry a disease (up to 15 weeks).

Compassionate care benefits are for people who must be away from work temporarily to provide care or support to a family member who is seriously ill with a significant risk of death (up to 26 weeks). The 26 weeks of benefits can be shared between different family members who applied and are eligible to receive them.

Family caregiver benefits for children are for family members who must be away from work to care for or support a critically ill or injured child. Family members can receive benefits or share benefits between them (up to 35 weeks).

Family caregiver benefits for adults are for family members who must be away from work to care for or support a critically ill or injured adult. Family members can receive benefits or share benefits between them (up to 15 weeks).

Who can register?

You can register if you operate your own business or work for a corporation but cannot access EI benefits because you control more than 40% of the corporation's voting shares. You must also be either a Canadian citizen or a permanent resident of Canada.

However, some individuals who work independently and are not hired as employees cannot register for these EI special benefits for self-employed people because they are already eligible to receive benefits through the regular EI program.

These individuals include barbers, hairdressers, taxi drivers, and drivers of other passenger vehicles who are not hired as employees but whose employment is insurable under the EI Regulations and fishers who are included as insured persons under the EI Fishing Regulations.

Eligibility criteria:

You must meet the following conditions to qualify for EI special benefits:

• your registration for access to the EI Program must still be valid (that is, not terminated) and
• you must have reduced the amount of time devoted to your business by more than 40% because of the birth of a child, the need to care for your newborn or newly adopted child or children illness, injury, or quarantine, the need to provide care or support to a gravely ill family member, or the need to provide care or support to your critically ill or injured family member
• you must have earned a minimum specified amount of net self-employed earnings during the calendar year before the year you submit an EI claim. Thus, for claims filed in 2021, the minimum amount of 2020 net income is $7,555

After registration: You have to wait 12 months from the date of your confirmed registration before applying for EI special benefits. For example, if you entered into an agreement on November 12, 2020, you can apply for EI special benefits as early as November 12, 2021.

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How much money will you receive?

If you are eligible for maternity, standard parental, sickness, compassionate care, or family caregiver benefits, you can expect to receive up to a maximum of 55% of your earnings from self-employment. For extended parental benefits, you can expect to receive up to a maximum of 33% of your earnings from self-employment.

In 2021, you can receive up to $595 per week for maternity, standard parental, sickness, compassionate care or family caregiver benefits based on the maximum insurable earnings of $56,300 for that year. For extended parental benefits, you can receive up to $357 per week. (The amount of $357 can be increased if you are eligible to receive the Family Supplement). Your benefits may decrease if you continue to work or your business generates earnings while collecting EI special benefits.

Benefits while working: If you work while receiving special benefits for the self-employed and have served your waiting period, you will be able to keep 50 cents of your EI benefits for every dollar you earn, up to 90% of the weekly insurable earnings used to calculate your EI benefit amount. This 90% amount is called the earnings threshold. If you earn any money above this threshold, it will be deducted dollar for dollar from your benefits.

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