Until now, self-employed Canadians have had little or no income protection to cope with major life events such as caring for a newborn or being sick or injured. That’s why our Government has introduced The Fairness for the Self-Employed Act. This new legislation extends Employment Insurance (EI) benefits for maternity, parental, sickness and compassionate care to the self-employed on a voluntary basis.

The extension of these special benefits represents a significant enhancement to the EI program. It means that self-employed Canadians will no longer have to choose between their family and their business.

The new measure is in response to our Government’s 2008 pledge to help provide improved economic security and support for all those who are self-employed. Those who choose to take advantage of the special benefits will be required to opt into the program at least one year prior to claiming benefits. They will also be responsible for making premium payments starting with the tax year in which they apply to the program. Self-employed individuals will be able to voluntarily opt into the EI program as of January 31, 2010 (subject to final approval of the regulations) and, as a transitional measure, will be able to collect benefits as early as January 1, 2011, if they register on or before April 1, 2010. To access EI special benefits, self-employed individuals will need to have earned a minimum of $6,000 in self-employed earnings over the 2010 calendar year.

Self-employed Canadians who opt into the EI program will pay the same premium rate as salaried employees. They will not be required to pay the employer portion of premiums, in recognition of the fact that they will not have access to EI regular benefits.

The self-employed can also opt out of the EI program at the end of any tax year, as long as they have never claimed benefits. If they have claimed benefits, they are required to contribute on self-employed earnings for as long as they are self-employed.

For more information, visit http://www.servicecanada.gc.ca/eng/sc/ei/self employed workers.shtml