Maternity Leave Benefits

[gravy_train]

Just wondering if anyone has actually applied for and used the EI benefits for self-employed people? How was the benefit amount calculated? I have tried calling EI many, many times and it is impossible to get ahold of anyone.
If I have another baby there is no way I will keep my daycare open so this is the best option for my family.

[Crayola kiddies]

Type "paying into EI" into the search engine on this page and a thread started by mama mia will come and reggio explains it the best... In a nut shell its not really worth it to pay into ... You would be better off setting some money aside every month in a separate account and then pay yourself when you are on mat leave ..... Many providers just take a few weeks off and have hubby take the mat leave and that way you can look after the daycare and dad can look after the baby.

[gravy_train]

Thanks, Crayola. I read that thread and all the others related to EI benefits. In my situation paying into EI is the best option. I am likely only in the daycare business until I have a baby so for me it makes sense to take advantage of these benefits.
Just wondering if anyone has actually paid into it and made a claim?
Also, what happened to Reggio? I always looked forward to reading her advice.

[playfelt]

The problem with the EI is the amount that will be paid out is not worth what you will pay in for the same period because of what is used to calculate the amount.

[gravy_train]

The rate actually isn't that bad, Playfelt. You pay $1.88 for every $100 you earn up to a maximum of $890 per year.
The benefit rate is 55% of your net income up to a maximum of $500 per week (or an annual net salary of approximately $47000).
So if my net income, or 'earnings' is $20000 I would pay a total of $375 per year and would receive $11000 in benefits for 52 weeks of maternity leave. I would have to pay into EI for more than 20 years in order to have paid more benefits than I receive.

[MichaelsMommy]

To get through to an ei rep call 1-800-206-7218 and keep hitting 0 and then 1 (brings you back to main menu) ....you may have to do this several dozen times but eventually you will get through....you don't need to listen to the recording just keep hitting 0+1

[gravy_train]

Thank you, Michael'sMommy! I was able to get through and actually had someone call me back to answer my questions but I am going to call and speak to someone else to verify the information the first person told me... I would hate to find out mid-pregnancy that the information I have been given isn't true.

[gravy_train]

I figured there had to be at least one person on here who has utilized these benefits!

[Skysue]

I asked this question last year and got some very rude comments. People were saying who wants to take a year off? I took a year with my 1st and wouldn't ever trade that time for a million dollars.

The only stipulation is you need to be paying into it 1 year before you receive it. So if you are pregnant now and sign up you can't use it.

My problem is getting pregnant has been difficult. My white blood cells have been dropping and we don't know why so we are taking a break as it could be due to stress. I need to focus on getting me healthy before even thinking of baby number 2.

[gravy_train]

Thanks, Skysue! So did you already register for the benefits?
I agree, I have been able to stay home with my other children and I feel that my whole family needs that in order to adjust to the new dynamics. I could not properly run my daycare with the ljmited amount of sleep havin a new baby brings. at least when you are home with your own children you Can nap in the afternoons to recharge.
i am not pregnant yet because I am not eligible for EI until June so we are waiting another month or so before we start trying. I also think that it would be really hard to manage several toddlers in the last trimester so I would like to have the flexibility to be able to leve work at around six months prrgnant.
I had no idea tht stress could cause an issue with white blood cell count! It's really amazing how our mental health is so connected with our physical health, isn't it?

[gravy_train]

Oh - just wanted to add too that I called and spoke with someone who said that even if you have to leave work a few months before you are eligible for your benefits you can still use your benefits on your eligibility date. So in my case, if I did become pregnant and had to stop working in march l I would still receive benefits, just not until June. The amount is apparently calculated based on the previous year's tax assessment, so definitely something else to keep in mind.

[playfelt]

What figure are they basing it on? I think the point that was made on the previous thread was that the amount may be what you are suggesting but that is not enough to carry many families through the year. Some thought the benefit would be paid on the whole earnings of say $40,000 not just on the after taxes amount that is our "true" income.

How long after you have collected for the year are you required to pay into the program or can you just leave? Again someone had been told once they signed up that payments would be taken out for years after the mat leave too. Only ideal if you plan to have more children.

What criteria does EI use to pay benefits in the event of unemployment ie all your kids leave at once which is equivalent to being laid off or does it just work for mat leave?

[gravy_train]

They base the benefit rate on your net income, which is the same as if you were an employee elsewhere.
If you continue to be self-employed after using EI you must continue to pay into it, which again would take years until you have paid what you use in benefits on maternity leave. If you register for the program and do not use your benefits you can opt out with no penalty (other than you are 'out' the money that you paid into the program - which really isn't that much).
Because we are self-employed, this program doesn't cover job loss, just maternity and parental leave, sickness benefits and compassionate leave.
I agree that if you aren't planning on having children it is probably not a good investment. However if you are planning on having children it seems to be worth it.
When I was initially researching the EI benefits for self-employed people I came to this forum to sleuth out whether it was worth it or not and I also read a lot of negative comments about it, but then I did my own research and the calculations and it is actually a great program for me!