Difference between revisions of "Timing for Reporting on Employment Insurance (8:X)"
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Unlike employees, self-employed people and independent contractor are not automatically covered by the EI system. These workers have the option of opting in to the EI system, in which case they may be entitled to receive certain special benefits, but not regular benefits. | Unlike employees, self-employed people and independent contractor are not automatically covered by the EI system. These workers have the option of opting in to the EI system, in which case they may be entitled to receive certain special benefits, but not regular benefits. | ||
Even though self-employed people and independent contractors are not automatically covered by the EI system, claimants may get into trouble if they try to start up a business while collecting EI after losing their job. Contrary to many claimants’ belief, self-employment amounts to “working” within the meaning of the question on the weekly reports even if the person has no expectation of receiving any income from it. Section 30 of the EI Regulations provides that, in most cases, a claimant engaged in self-employment is deemed to have worked a full week, unless the self-employment is “so minor in extent that a person would not normally follow it as a principal means of livelihood”. Failure to report such activity will usually lead to overpayments and penalties or charges for misrepresentation. Decisions by the Commission on overpayment and/or the imposition of penalties should always be appealed | Even though self-employed people and independent contractors are not automatically covered by the EI system, claimants may get into trouble if they try to start up a business while collecting EI after losing their job. Contrary to many claimants’ belief, self-employment amounts to “working” within the meaning of the question on the weekly reports even if the person has no expectation of receiving any income from it. Section 30 of the ''EI Regulations'' provides that, in most cases, a claimant engaged in self-employment is deemed to have worked a full week, unless the self-employment is “so minor in extent that a person would not normally follow it as a principal means of livelihood”. Failure to report such activity will usually lead to overpayments and penalties or charges for misrepresentation. Decisions by the Commission on overpayment and/or the imposition of penalties should always be appealed | ||
If a claimant wishes to start a business while on EI, they should contact the Commission '''before''' doing anything to pursue self-employment. Special benefits may be available if the claimant enters an approved self-employment agreement for the development and implementation of a business plan. | If a claimant wishes to start a business while on EI, they should contact the Commission '''before''' doing anything to pursue self-employment. Special benefits may be available if the claimant enters an approved self-employment agreement for the development and implementation of a business plan. | ||