Calculation of premiums
In 2012, for every $100 you earn, you will need to contribute $1.83 in EI premiums up to a defined maximum—the same amount that employees pay. This means the most you will pay in EI premiums for 2012 is $839.97.
Since Quebec has its own parental insurance program that offers maternity and parental benefits, EI premiums have been adjusted accordingly for that province. In 2012, self-employed people in Quebec who register for the EI program will pay $1.47 for every $100 of earnings, up to a total of $674.73 for the year.
EI premiums are calculated by the Canada Revenue Agency (CRA) based on your self-employed earnings, as calculated under the Income Tax Act.
If you are a shareholder of a corporation and you control more than 40% of that corporation's voting shares, the CRA will calculate your EI premiums based on the amount of what would have been your insurable earnings from that employment if the earnings had been insurable.
Unlike the regular EI program, and because you are self-employed, you will not have to pay the employer's portion of the EI premium.
Payment of premiums
For the first year of participation in the EI program, you will have to pay your premiums by April 30 of the following year. After that, if you pay your income tax by instalments to the CRA, EI premiums may be included in your instalment payments.
When you register, EI premiums will be payable on your self-employed income for the entire year, regardless of the date you register. For example, whether you register in April 2012 or December 2012, you will pay EI premiums on your self-employed income for all of 2012.
For information on how the payment of premiums is handled when you decide to end your participation, refer to the Cancelling your participation page.