If you’re wondering about EI for business owners in Canada, you’re not alone. Many self-employed individuals are tempted to opt into the Employment Insurance program — often to access maternity or parental benefits. But as I explain in this video, contributing for life without enough return may not be the best financial move. Let’s take a closer look at when it might make sense — and when it doesn’t. Is it time to consider alterative forms of remuneration and their impact?
Is it time to consider alterative forms of remuneration and their impact? Contact me and let’s talk!
Video Transcript: EI for business owners – opt in or not?
Generally speaking, self-employed individuals will not be contributing to the EI or employment insurance system.
A common example, however, of someone who may want to opt in is someone looking to collect maternity benefits.
Be cautious. I expect that many self-employed individuals will find, if they do the math and look at alternatives — particularly in terms of how funds can be taken out of a company — and the fact that you’re essentially going to be, for the rest of your life while self-employed, contributing to the EI program, I think you’re going to find there are better alternatives than claiming EI.
Do the math, talk with your advisor, and consider what makes sense in your case.
I’m George Dube, saving the world from tax, one bow tie at a time®.
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Resources
For additional resources related to how to maximize tax deductions, see:
- 2025 tax season tips: How to save more this year
- Ownership strategies for real estate investors: Incorporate or not?
- Joint ventures and capital gains: How does this work?
More questions?
Still have questions? I want to help you Do wonderful things®, so please contact me today.
Remember – circumstances are unique! This information is summary in nature. Seek out advice from your tax advisor about your specific situation.
