Employment Insurance Special Benefits for Self Employed People

[5 Little Monkeys]

Thanks gravy!! I hope it comes in handy one day

[kidam]

You can opt out but only as long as you haven't yet received any EI benefits. Be careful though: if your business keeps on making money and providing you with any income while you're off work, that money will be subtracted from your EI benefits.

[gravy_train]

Hi everyone! As promised I am updating the threads on Maternity Leave benefits so that others can learn from my experience :-).
So, I registered online for EI benefits for self-employed people in June 2013, knowing that we were going to try to have a baby in the coming months. I was hesitant at first because when I read through the advice here a lot of people seemed to be against the program, however when I did the math and determined how much I would pay in premiums versus how much I would receive in benefits, there was no question that this program was right for me.

I applied for sick leave at the beginning of June - my midwife had no hesitation at all about writing me a letter recommending that I stop working immediately (working over 50 hours a week alone is justification for this, but add in the stress, the physical requirements, etc. and it makes sense). I found out today that my application was approved and that I will receive my benefits in 2-3 days. I will receive 15 weeks of sick leave, then 15 weeks of maternity leave, then 35 weeks of parental benefits. So a total of 65 weeks of paid benefits. The premiums and benefits are determined by your income as reported on your most recent taxes. My fiscal year runs from Jan 1 - December 31 so my rates are determined by my 2013 information. This is something to keep in mind and plan for as you would want your taxable income to be as high as possible so that your benefits are as much as they can be.

For the benefit of everyone, here's a financial breakdown:
My net (taxable) income for 2013: approx $30,000
EI Premiums I paid on my 2013 taxes: approx. $550
My weekly benefits: approx. $300 per week, total of $19,500

It would take me 35 years of paying EI premiums at the rate of $550 per year in order for me to break even, so for me this program was totally the way to go. If anyone has any questions about the specifics, please send me a private message and I'll try to help!

[torontokids]

Thanks for the update. I think the program makes sense for sure for most people for the following reasonsEI payments are quite small.
Most people when they leave home daycare they go back to work for a company where they would pay into EI anyways
Especially good for people who are doing daycare for the short term and plan to take the yr off then go back to the work place.

When it doesn't make sense
If you are a lawyer, Dr or other very high paid professional that opened a home daycare (or plan to go back to school to become one after daycare) to stay home with your kids. Your income will continue to get larger and larger and your EI is a percentage of what you make so this isn't a smart move.

That being said, I had not registered at the moment because I am unsure of my long term professional goals (I'm was a therapist before opening a daycare). If I go into private practice down the road or open my own business, this could be a significant loss for me.

[gravy_train]

Yes for sure, torontokids. The premiums you pay are capped at around $850 per year though so you will never pay more than that in premiums even if warranted by your income.

[playfelt]

I guess you also have to decide if getting only a portion of your pay for a full year is worth it in the sense that because you are home with your own child you can continue to breastfeed and snuggle and do all those things that moms are given a full year to do and still do daycare making more than the amount you would get on EI. And if you are starting to pay in very young and receive for your first do you not have to continue to pay in meaning unless you have several children and use the program again and again at what point do you no longer even break even.

[abcdaycare]

This is interesting to read as I am planning on having another baby within the next year. Hopefully timed for next summer.

Does anyone have any feedback who has now been through this?