Service Canada
People serving people
Common menu bar links
Examples of EI Special Benefits for Self-Employed People
The examples below are designed to help potential claimants decide whether to register for access to Employment Insurance special benefits for self-employed Canadians.
- Self-employed professional consultant - Maternity and parental benefits
- Self-employed fitness consultant in Quebec - Sickness benefits
- Self-employed tradesperson who has some regular paid employment income - Sickness benefits
- Salaried worker who has some income from self-employment - Sickness benefits
- Self-employed health care worker - Compassionate care benefits
- Self-employed agricultural workers - Various special benefits
For more information on the Employment Insurance Measure for Self-Employed People (Bill C-56), please consult our frequently asked questions. (www.servicecanada.gc.ca/eng/sc/ei/faq_self_employed_workers.shtml)
1. Self-employed professional consultant - Maternity and parental benefits
Mary is a self-employed consultant in Toronto, Ontario. She earns about $50,000 per year ($960 per week) in self-employed earnings. (Self-employed earnings are self-employment income minus all losses, calculated according to the Income Tax Act.) Mary meets a key eligibility requirement to receive Employment Insurance (EI) special benefits: self-employed people who make a claim in 2011 will need to have earned a minimum of $6,000 in self-employed earnings in the 2010 calendar year.
Mary is thinking about starting a family and is considering registering for access to EI special benefits for the self-employed on March 31, 2010, through My Service Canada Account.
Mary could apply for benefits as early as January 1, 2011, if she registers by April 1, 2010. If she registers after April 1, 2010, she will need to wait 12 months before applying for benefits.
Once Mary registers for access to EI special benefits, she will need to start paying premiums. For 2010, the EI premium rate is $1.73 per $100 of insurable earnings, and the maximum insurable earnings are $43,200. Although her actual earnings are higher, Mary will pay EI premiums only up to the $43,200 earnings threshold. This means that, for 2010, the maximum annual amount she will pay in premiums is $747.36.
Mary will be responsible for making premium payments through the Canada Revenue Agency, starting in the tax year in which she registers for access to EI special benefits.
If Mary becomes pregnant and qualifies for benefits, she could be eligible to receive maternity benefits for up to 15 weeks, or a total of about $6,855. She could also be eligible for parental benefits for up to 35 weeks, or a total of about $15,995. Benefits for self-employed people are based on total reported self employed earnings minus all losses for the previous tax year. This amount is divided by 52 to determine the average weekly earnings. The calculation of benefits also takes into account any eligible employment income earned in the previous tax year.
If Mary continues to earn more than the maximum insurable earnings in 2010, she could receive the maximum weekly benefit (assuming she has no self-employed or other earnings while receiving benefits). For 2010, the maximum weekly benefit is $457 per week. If Mary has self-employed or other earnings while receiving benefits, her benefits could be reduced.
Mary could also be eligible for up to 15 weeks of sickness benefits, as well as up to 6 weeks of compassionate care benefits.
If Mary registers for access to EI special benefits but then changes her mind, she can withdraw her agreement. If she cancels within 60 days of registering, she will not have to pay EI premiums. She can also terminate her agreement at the end of any tax year, as long as she has never received benefits. However, once she has received benefits, she will have to pay EI premiums on her self employed earnings for as long as she is self-employed.
2. Self-employed fitness consultant in Quebec - Sickness benefits
Paul is a personal fitness trainer in Montréal, Quebec. He makes $39,500 per year (about $760 per week) in self-employed earnings. (Self-employed earnings are self-employment income minus all losses, calculated according to the Income Tax Act.)
Because his job is physically demanding, Paul worries that an injury on the job might prevent him from working for a period of time and that his wife’s salary alone might not be enough for the couple to live on. Paul feels the EI premiums are worth the income security and is considering registering for access to EI special benefits for the self-employed, through My Service Canada Account.
Paul meets a key eligibility requirement to receive EI special benefits: self-employed people who make a claim in 2011 will need to have earned a minimum of $6,000 in self-employed earnings in the 2010 calendar year.
Paul could apply for benefits as early as January 1, 2011, if he registers for access to special benefits by April 1, 2010. If he registers after April 1, 2010, he will have to wait 12 months before applying for benefits.
Once Paul registers for access to EI special benefits, he will have to pay premiums. For 2010, the EI premium rate in Quebec is $1.36 per $100 of insurable earnings and the maximum insurable earnings are $43,200. Because Paul’s actual earnings are less than the maximum insurable earnings, he will pay about $537 annually. If he earned as much as or more than the maximum amount, he would have to pay $587.52.
Quebec’s EI premium rate is lower because maternity and parental benefits are provided by the Quebec Parental Insurance Plan, to which Paul contributes.
Paul will be responsible for making premium payments through the Canada Revenue Agency, starting with the tax year in which he registers for access to EI special benefits.
If Paul were to injure himself and qualify for benefits, he would receive about $418 per week in sickness benefits for up to 15 weeks, or a total of about $6,270. However, if Paul had self-employed or other earnings while receiving benefits, his benefits could be reduced.
If Paul registers for access to EI special benefits but then changes his mind, he can withdraw his agreement. If he cancels within 60 days of registering, he will not have to pay EI premiums. He can also terminate his agreement at the end of any tax year, as long as he has never received benefits. However, once he has received benefits, he will have to pay EI premiums on self employed earnings for as long as he is self-employed.
3. Self-employed tradesperson who has some regular paid employment income - Sickness benefits
Terry used to work as an electrician at a large pulp and paper mill in Corner Brook, Newfoundland and Labrador. After she was laid off, Terry started her own company and currently employs two other junior electricians and an apprentice. She earns about $32,000 a year in self-employed earnings from her company. (Self-employed earnings are her self-employed income minus all losses, calculated according to the Income Tax Act.) However, she also continues to work part time as a labourer at the mill, earning about $10,000 a year. Her combined income is therefore about $42,000 per year or $808 per week.
Terry worries that an injury might prevent her from working for a period of time, so she is considering registering for access to EI special benefits for the self-employed, through My Service Canada Account.
If Terry’s income continues at the same level in 2010, she will meet a key eligibility requirement to receive EI special benefits: self-employed people who make a claim in 2011 will need to have earned a minimum of $6,000 in self-employed earnings in the 2010 calendar year.
Terry could apply for benefits as early as January 1, 2011, if she registers for access to EI special benefits by April 1, 2010. If she registers after April 1, 2010, she will have to wait 12 months before applying for benefits.
If Terry is injured in 2011, she will be able to apply for sickness benefits as a self-employed person. She will be eligible to receive about $444 per week in sickness benefits for up to 15 weeks, or a total of about $6,660. However, if Terry has self-employed or other earnings while receiving benefits, her benefits could be reduced.
Terry will be responsible for making premium payments through the Canada Revenue Agency, starting with the tax year in which she registers for access to EI special benefits.
For 2010, the maximum insurable earnings amount on which EI premiums is paid is $43,200, and the EI premium rate is $1.73 per $100 of insurable earnings. This means that in 2010 a self-employed person earning $43,200 will contribute up to $747.36 in premiums.
If Terry registers for access to EI special benefits, her premiums on her self-employed earnings will be about $554 annually. She will also pay about $173 annually in EI premiums on her insurable earnings at the mill (based on her $10,000 annual wage). If her combined self-employed earnings and regular insured earnings exceed the maximum insured earnings amount in any given year, she will pay premiums only up to this maximum amount ($43,200 for 2010).
If Terry registers for access to EI special benefits but then changes her mind, she can cancel her agreement. If she cancels within 60 days of registering, she will not have to pay EI premiums. She can also terminate her agreement at the end of any tax year, as long as she has never received benefits. However, once she has received benefits, she will have to pay EI premiums on self employed earnings for as long as she is self-employed.
If Terry decides not to register for access to EI special benefits under the provision for self-employed people, she may still be eligible to receive benefits as a salaried worker. Based on her regular earnings of $10,000 from the mill (and assuming that she works the same number of hours every week), she could receive about $106 per week for 15 weeks, or a total of $1,590. To receive this benefit, she would have to meet all eligibility requirements, including having worked 600 hours in the qualifying period.
4. Salaried worker who has some income from self-employment - Sickness benefits
Brian works on the tech support team of a large software company in Waterloo, Ontario, making $30,000 a year. Three years ago, he started a small company that builds custom computer systems. He finds clients and builds the systems in the evenings and on some weekends. From his business, he earns about $8,000 a year in self-employed earnings. (Self-employed earnings are self-employment income minus all losses, calculated according to the Income Tax Act.)
Brian considers registering, through My Service Canada Account, for access to EI special benefits under the provisions for self-employed people. This would enable him to insure his earnings from both income streams for the purpose of receiving EI special benefits.
If Brian’s income continues at the same level in 2010, he will meet a key eligibility requirement to receive EI special benefits: self-employed people who make a claim in 2011 will need to have earned a minimum of $6,000 in self-employed earnings in the 2010 calendar year.
Brian could apply for benefits as early as January 1, 2011, if he registers for access to EI special benefits for the self-employed by April 1, 2010. If he registers after April 1, 2010, he will need to wait 12 months before making a claim.
If Brian makes a claim for special benefits as a self-employed person, his benefit level will be based on his total combined earnings of $38,000. If he makes a claim under the existing EI program for paid workers, his benefit level will be based only on his eligible paid earnings from the previous 26 weeks, and his eligibility will be based on insured hours worked in the last 52 weeks.
If Brian becomes sick and applies for special benefits as a self employed person, he may be eligible to receive about $402 per week in sickness benefits for up to 15 weeks, or a total of about $6,030. If he applies under the existing EI program for paid workers, he could receive about $317 per week, or a total of about $4,755, in sickness benefits. This amount would be based on his paid employment earnings of $30,000, assuming that his weekly earnings are eligible and constant over the year. If Brian has self-employment or other earnings while claiming benefits, his benefits could be reduced.
If Brian registers for the EI program under the provisions for self-employed people but then changes his mind, he can withdraw his agreement. If he cancels within 60 days of registering, he will not have to pay EI premiums. He can also terminate his agreement at the end of any tax year, as long as he has never received benefits. However, once he has received benefits, he will have to pay EI premiums on self employed earnings for as long as he is self-employed.
5. Self-employed health care worker - Compassionate care benefits
Joan is a recently graduated massage therapist in Victoria, British Columbia. She makes $35,000 per year, or about $673 per week, in self-employed earnings. (Self-employed earnings are income from self-employment income minus all losses, calculated according to the Income Tax Act.)
Joan has elderly parents and worries that she may have to miss out on work and income to care for them if they become gravely ill. She is considering registering for access to EI special benefits for the self-employed. These benefits include compassionate care benefits for self-employed people who are temporarily away from work to provide care or support to a family member who is gravely ill with a significant risk of death.
If Joan qualifies for benefits, she could receive about $370 per week in compassionate care benefits for up to six weeks, or a total of about $2,220. However, if Joan has self-employed or other earnings while receiving benefits, her benefits could be reduced.
Joan is happy with the peace of mind she gains from knowing she could also be eligible for up to 15 weeks of sickness benefits, up to 15 weeks of maternity benefits, and up to 35 weeks of parental benefits.
6. Self-employed agricultural workers - Various special benefits
Maternity and parental benefits
Lise and her husband Paul run a successful small farm in Saskatchewan. The farm provides them with about $40,000 per year in self-employed earnings. (Self-employed earnings are income from self-employment minus all losses, calculated according to the Income Tax Act.)
Lise and Paul are planning to start a family in the next couple of years. As a result, Lise is considering registering for access to Employment Insurance (EI) special benefits for the self-employed. Lise reports half of the farm’s earnings on her tax return, making her self-employed earnings about $20,000 or approximately $385 per week.
If she becomes pregnant and qualifies for benefits, she could receive about $212 per week in maternity benefits for up to 15 weeks and parental benefits for up to 35 weeks, or a total of about $10,600. However, if Lise has self-employed or other earnings while receiving benefits, her benefits could be reduced. Paul would not be eligible for EI special benefits because he has not registered for access to the program.
Compassionate care benefits
Robert works with his parents on his family’s farm in Nova Scotia. His mother also works off the farm as a teacher, and his father does seasonal work off the farm as a snowplough driver. Robert’s parents both contribute to the EI program through their off-farm employment.
The family plans for Robert to take full control of the farm when his parents retire in the next couple of years. However, Robert is concerned about the future health of his parents and the demands it may place on his time. As a result, he is considering registering for access to EI special benefits for the self-employed when he takes over the farm. EI special benefits include compassionate care benefits, which would provide Robert with up to six weeks of benefits to care for his parents should they become gravely ill with a significant risk of death.
When Robert takes over the farm, he expects to earn about $30,000 per year (or $577 per week) in self-employment income. (Self-employment income is self-employed earnings minus all losses, calculated according to the Income Tax Act.) With earnings of $30,000 a year and if he qualifies for benefits, Robert could receive benefits of about $317 per week for up to six weeks, or a total of about $1,902 . However, if Robert has self-employed or other earnings while claiming benefits, his benefits could be reduced.
If Robert registers for access to EI special benefits, he will also be eligible for up to 35 weeks of parental benefits and up to 15 weeks of sickness benefits, which could be helpful should he start a family or be unable to work for a period of time because he is ill or injured.
Sickness benefits—own-account farmers
Maternity and parental benefits—incorporated farmers
Suzie and Bill own a poultry farm that is incorporated in New Brunswick. Suzie owns 60 percent and Bill owns 40 percent. Suzie has reported earnings of $30,000 (or $577 per week) for the past several years.
If Suzie becomes pregnant, she could apply for maternity and parental benefits if she has registered for access to EI special benefits for the self-employed and has been paying EI premiums. If she qualifies for benefits in 2011, she could receive $317 per week in maternity benefits for up to 15 weeks and parental benefits for up to 35 weeks, or a total of about $15,850. However, if Suzie has self-employed or other earnings while receiving benefits, her benefits could be reduced.