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If you are self-employed, then you should consider Employee Insurance. When you are employed by a business, employee insurance is taken care of by your employer. However, just because you are self-employed or the sole employee of your business, you don’t have to skip on employee insurance.
So, what should you know about employee insurance?
Open to Self-Employed and Small Business Owners
Over 2.6 million Canadian are self-employed and from 2011, they have been granted access to the Employee Insurance program.
However, you will have access only to certain benefits of the insurance program.
Once you register for Employee Insurance, you start paying the premiums, which is exactly the same rate as a normal employee, a minimum of $1.88 per $100 to a maximum of $930.60 of insurable earnings.
The weekly benefits amount is 55% of your average earnings in a week, based on the last tax filed before you applied for the benefit. The maximum collectible amount is $524 per week.
Other Things to Consider
Is it for you?
Employee Insurance is not for all self-employed or small business owners. In its current state, registering for employee insurance may bring you more loss of income than assistance. The income generated from your business, while you receive special benefits, can be reduced. Furthermore, you do not have full access to all the benefits provided by Employee Insurance as a usual employee does.
One of the advantages of being self-employed is that you don’t have to take employee insurance and you earn more income. However, depending on your personal situation if you want to become a parent or you may have to take care of a sick parent in the future, employee insurance may be for you.
Every situation is different. That’s why it is important that you speak to an accountant who will be able to understand your situation and advise you accordingly.