30 Jul Important Characteristics Of Employment Insurance Program
Do you think new employment earnings will be beneficial for you? You must have heard that those Canadian Nationals who are unemployed will get $49,500 from 2015. In previous years they were getting $48,600 per year. And there is more. For self employed Canadians – they can opt for employment insurance program if their annual income is above $6,645.
Some people actually don’t know about employment insurance entirely. You can always learn about EI through corporate tax consultants. They will provide all guidance and necessary information regarding this process. ctsassociates have been helping people in these isues since 1988.
What is Employment Insurance Canada?
For those who want to know what it is, Employment Insurance (EI) is a benefit payment to unemployed Canadians for the entire period of unemployment.
How does EI Program Work?
The system is executed by mutual efforts of citizens and the government. Following contributors are responsible to pay the premiums:
- Contributors from federal government
Collected premiums are then used for the benefit of unemployed citizens.
Eligibility Criteria for Employment Insurance
Here is an example of how this whole system works out for you. You can also find out whether or not you’re eligible for employment insurance program.
- You have no job because you’ve just lost one, but you need financial assistance on temporary basis, or
- You are pregnant or sick and that’s why you quit your job
- You quit work in order to look after your pregnant wife, or sick husband, your child, or critically ill parent
- Someone in the family has been seriously injured and there is no one other than you to take care of him/her. Due to this reason you left the job. You’re not certain about the time of recovery
If you have been jobless due to any of these reasons, you are eligible for EI.
Is EI Applicable on Every Citizen?
As mentioned above, the whole system is executed by contributors of government and public. EI is for those who have been going through temporary period of unemployment because of any critical situation. So, if you don’t fall under above mentioned criteria, you are not eligible.
If, in a company where you were employed before, the length of previous employment lies between 420 and 700 hours, you will be eligible for EI program
If you’re self employed, what you will be getting is known as EI refund. Although, there is no room for family members in EI benefits, those who run family business and have family members as their employees, may be eligible for EI refund.
Self-employed qualify for EI refund under following conditions
- If the family has more than 50% shares of your business
- Employees are direct relatives of the employer
- Employer pays EI premium of his employees
Business Tax Consultants
The rules are quite strict, so you need to carefully read and fill out the form. An improper request for EI refund may be disqualified. If there is a negative ruling, it is very hard to overturn it. To avoid this situation, you can consult corporate tax service to ensure application approval.