Overview

The Fairness for The Self-Employed Act was tabled by the Canadian Government in November 2009, to provide Employment Insurance (E.I.), maternity, sickness, compassionate care & parental/ adoption benefits to self-employed Canadians on a voluntary basis.  canadians have been able to opt into the E.I. program since January, with benefits being paid starting in January 2011 (Quebec residents will continue to be eligible for maternity & parental benefits through the Quebec Parental Insurance Plan, and can opt into the E.I. program)

So, what exactly is E.I.?
E.I. is a national program giving access to special benefits to workers when their income is interupted due to illness, childbirth, parenting or caregiving for an ill family member.

How does E.I. work?
Up until now, it was designed for an employer-employee relationship, and was funded by premiums paid by both parties.  Under the new Act, self-employed Canadians can opt into the program at least 1 year prior to claiming benefits.  They will be responsible for making payments for premiums for the tax year in which they apply to the program.  Those who opt in prior to April 1st 2010 will be able to collect benefits as early as January 1st 2011.

Where can I find more information?
Visit http://www.servicecanada.gc.ca/eng/sc/ei/self_employed_workers.shtml
contact Service Canada toll-free at 1 800 O-Canada (1-800-622-6232; teletypewriter 1‑800‑926-9105)

This article has been written as a guide only.  Please consult an accountant or the Government of Canada for full details.