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Employment Insurance Act (S.C. 1996, c. 23)

Act current to 2022-11-16 and last amended on 2022-09-25. Previous Versions

PART VII.1Benefits For Self-Employed Persons (continued)

Payment of Benefits (continued)

Marginal note:Waiting period

 A self-employed person is not entitled to be paid benefits in a benefit period until, after the beginning of the benefit period, the person has served a waiting period of one week of unemployment for which benefits would otherwise be payable.

  • 2009, c. 33, s. 16
  • 2016, c. 7, s. 221

Marginal note:Presumption

  •  (1) For the purpose of determining a self-employed person’s waiting period, a week of unemployment is deemed to be a week of unemployment for which benefits would otherwise be payable if — were the week not the waiting period — the amount of the benefits that would have been payable in that week after deducting the following would be greater than zero:

    • (a) the amount of the earnings, if any, that is greater than $50, if the person’s rate of weekly benefits is less than $200; or

    • (b) the amount of the earnings, if any, that is greater than 25% of the person’s rate of weekly benefits, if that rate is $200 or more.

  • Marginal note:References

    (2) For the purpose of subsection (1),

    • (a) in determining the amount of the benefits that would have been payable, the deduction referred to in subsection 152.18(2) is to be excluded; and

    • (b) a reference to earnings means earnings as determined for the purpose of subsection 152.18(2).

  • 2018, c. 12, s. 290

Marginal note:Rate of weekly benefits

  •  (1) The rate of weekly benefits payable to a self-employed person is 55% — or 33% for the weeks for which the self-employed person is paid benefits under section 152.05 in the case where the applicable maximum number of weeks is established in subparagraph 152.14(1)(b)(ii) — of the result obtained by dividing the aggregate of the amounts referred to in the following paragraphs (a) and (b) by 52:

    • (a) the amount of their self-employed earnings, determined under paragraph 152.01(2)(a), (b) or (c), as the case may be, for their qualifying period; and

    • (b) if they had insurable earnings from employment, including insurable earnings earned as a person to whom regulations made under Part VIII apply, for their qualifying period, the amount of those insurable earnings for that period, calculated without taking into account prescribed insurable earnings.

  • Marginal note:Excess not to be included

    (2) Only the portion of the aggregate of the amounts referred to in paragraphs (1)(a) and (b) that does not exceed the maximum yearly insurable earnings as calculated under section 4 is to be taken into account for the purposes of subsection (1).

  • 2009, c. 33, s. 16
  • 2017, c. 20, s. 252

Marginal note:Rate increase — family supplement

  •  (1) The rate of weekly benefits of a self-employed person who has one or more dependent children shall be increased by the amount of a family supplement determined in accordance with the regulations if the person establishes, in the manner that the Commission may direct, that the person meets the prescribed low-income family eligibility criteria.

  • Marginal note:Criteria

    (2) The criteria for low-income family eligibility may include criteria that are the same as or similar to the criteria for receiving a Canada child benefit.

  • Marginal note:Canada child benefit

    (3) For the purposes of subsection (2), a Canada child benefit is a deemed overpayment under subdivision a.1 of Division E of Part I of the Income Tax Act.

  • Marginal note:Maximum increase

    (4) The amount of the increase in the self-employed person’s rate of weekly benefits shall not exceed the prescribed percentage of their amount of self-employed earnings for the year divided by 52 or, if no percentage is prescribed, 25%.

  • Marginal note:Maximum rate of weekly benefits

    (5) The maximum rate of weekly benefits that may be paid under this section is 55% of the maximum yearly insurable earnings, as calculated under section 4, divided by 52.

  • 2009, c. 33, s. 16
  • 2016, c. 12, s. 86

Marginal note:Earnings in waiting period

  •  (1) If a self-employed person has earnings during their waiting period, an amount not exceeding those earnings shall, as prescribed, be deducted from the benefits payable for the first three weeks for which benefits would otherwise be payable.

  • Marginal note:Earnings in periods of unemployment

    (2) Subject to subsections (3), 152.03(3) and 152.04(4), if the self-employed person has earnings during any other week of unemployment, there shall be deducted from benefits payable in that week the amount equal to the total of

    • (a) 50% of the earnings that are less than or equal to 90% of the result obtained by dividing the aggregate of the amounts referred to in paragraphs 152.16(1)(a) and (b) by 52, and

    • (b) 100% of the earnings that are greater than 90% of the result obtained by dividing the aggregate of the amounts referred to in paragraphs 152.16(1)(a) and (b) by 52.

  • Marginal note:Excess not to be included

    (2.1) Only the portion of the aggregate of the amounts referred to in paragraphs 152.16(1)(a) and (b) that does not exceed the maximum yearly insurable earnings as calculated under section 4 is to be taken into account for the purpose of subsection (2).

  • Marginal note:Undeclared earnings

    (3) If the self-employed person has failed to declare all or some of their earnings to the Commission for a period, determined under the regulations, for which benefits were claimed,

    • (a) the following amount shall be deducted from the benefits paid to the person for that period:

      • (i) the amount of the undeclared earnings, if, in the opinion of the Commission, the person knowingly failed to declare the earnings, or

      • (ii) in any other case, the amount of the undeclared earnings less the difference between

        • (A) all amounts determined under paragraph (2)(a) or (b) for the period,

        and

        • (B) all amounts that were applied under those paragraphs in respect of the declared earnings for the period; and

    • (b) the deduction shall be made

      • (i) from the benefits paid for a number of weeks that begins with the first week for which the earnings were not declared in that period, and

      • (ii) in such a manner that the amount deducted in each consecutive week equals the person’s benefits paid for that week.

  • 2009, c. 33, s. 16
  • 2018, c. 12, s. 291

Marginal note:Deduction for excluded days in waiting period

  •  (1) If a self-employed person is not entitled to receive benefits for a working day in their waiting period, an amount equal to 1/5 of their weekly rate of benefits for each such working day shall be deducted from the benefits payable for the three weeks described in subsection 152.18(1).

  • Marginal note:Deduction for excluded days not in waiting period

    (2) If a self-employed person is disentitled from receiving benefits for a working day in a week of unemployment that is not in their waiting period, an amount equal to 1/5 of their weekly rate of benefits for each such working day shall be deducted from the benefits payable for that week.

  • 2009, c. 33, s. 16

Marginal note:Prison inmates and persons outside Canada

 Except as may otherwise be prescribed, a self-employed person is not entitled to receive benefits for any period during which the person

  • (a) is an inmate of a prison or similar institution; or

  • (b) is not in Canada.

  • 2009, c. 33, s. 16

Premium

Marginal note:Premium

  •  (1) Every self-employed person who has entered into an agreement referred to in subsection 152.02(1) that has not been terminated or that is not deemed to have been terminated shall, in respect of every year, pay a self-employment premium equal to the amount determined under subsection (2) multiplied by the premium rate set under section 66 or 66.32, as the case may be.

  • Marginal note:Amount

    (2) The amount for the purpose of subsection (1) is the lesser of

    • (a) the amount of the person’s self-employed earnings for the year,

    and

    • (b) the maximum yearly insurable earnings for the year, as calculated under section 4, minus the person’s insurable earnings, if any.

  • Marginal note:Clarification

    (3) For greater certainty, a premium is required to be paid

    • (a) in respect of the year during which the self-employed person entered into the agreement, regardless of the date on which it was entered into; and

    • (b) in respect of the year during which the agreement is terminated or deemed to be terminated, regardless of the date on which it was terminated or deemed to be terminated.

  • 2009, c. 33, s. 16
  • 2013, c. 40, s. 136

Self-employed Earnings and Collection of Premiums

Marginal note:Return to be filed

  •  (1) If a self-employed person is required to pay a premium for a year in respect of their self-employed earnings, a return of the person’s self-employed earnings for the year shall, without notice or demand for it, be filed with the Minister of National Revenue in the form and manner, and containing the information, specified by that Minister, by that person (or, if the person is unable for any reason to file the return, by their representative) on or before the day on which the person’s return of income under Part I of the Income Tax Act is required by that Part to be filed or would be required by that Part to be filed if tax under that Part were payable for the year.

  • Marginal note:Demand for return

    (2) Whether or not they are liable to pay a premium for a year in respect of their earnings from self-employment and whether or not a return has been filed under subsection (1), every self-employed person shall, on demand from the Minister of National Revenue, served personally or by registered letter, file with that Minister, in the form and containing information specified by that Minister, within any reasonable time that may be specified in the demand, a return of their earnings from self-employment for the year designated in the demand.

  • Marginal note:Return by trustee, etc.

    (3) Every trustee in bankruptcy, assignee, liquidator, curator, receiver, receiver-manager trustee or committee and every agent, mandatary or other person administering, managing, winding-up, controlling or otherwise dealing with the property, business, estate or succession, or income of a self-employed person who has not filed a return of the person’s self-employed earnings for a year as required by this section must file with the Minister of National Revenue a return, in the form specified by that Minister, of the person’s self-employed earnings for the year.

  • Marginal note:Identification of province of residence

    (4) The information to be contained in any such return must identify the province in which the self-employed person was resident on the last day of that year.

  • 2009, c. 33, s. 16

Marginal note:Estimate to be made

 Every self-employed person required by section 152.22 to file a return of their self-employed earnings must, in the return, estimate the amount of the premium to be paid in respect of those earnings.

  • 2009, c. 33, s. 16

Marginal note:Examination of return and notice of assessment

 The Minister of National Revenue must, with all due dispatch, examine each return of self-employed earnings and assess the premium to be paid for the year in respect of those earnings and the interest and penalties, if any, payable, and, after the examination, send a notice of assessment to the person who filed the return.

  • 2009, c. 33, s. 16

Marginal note:Payment of premium

  •  (1) A self-employed person shall, on or before their balance-due day for the year, pay to the Receiver General the whole amount of the premium if they are not required by section 155 or 156 of the Income Tax Act to pay instalments for that year in respect of their income tax.

  • Marginal note:Farmers

    (2) Every self-employed person to whom section 155 of the Income Tax Act applies, other than a person to whom subsection (1) applies, shall pay to the Receiver General on or before December 31 in each year, two thirds of the following amounts:

    • (a) the premium required to be paid by the person for the year in respect of the person’s self-employed earnings, as estimated by the person; or

    • (b) the premium required in respect of the person’s self-employed earnings for the preceding year.

    In addition, the person shall pay to the Receiver General, on or before the person’s balance-due day for the year, the remainder of the premium as estimated under section 152.23. However, paragraphs (a) and (b) do not require the payment of any amount in respect of the person that would otherwise become due after the death of the person.

  • Marginal note:Other persons

    (3) Every self-employed person, other than a person to whom subsection (1) or (2) applies, shall pay to the Receiver General in respect of each year

    • (a) on or before March 15, June 15, September 15 and December 15 in the year, an amount equal to one quarter of

      • (i) the premium required to be paid by the person for the year in respect of the person’s self-employed earnings, as estimated by the person, or

      • (ii) the premium required in respect of the person’s self-employed earnings for the preceding year; or

    • (b) on or before

      • (i) March 15 and June 15 in the year, an amount equal to one quarter of the premium required in respect of the person’s self-employed earnings for the second preceding year, and

      • (ii) September 15 and December 15 in the year, an amount equal to one half of the amount, if any, by which

        • (A) the premium required in respect of the person’s self-employed earnings for the preceding year

        exceeds

        • (B) one half of the premium required in respect of the person’s self-employed earnings for the second preceding year.

    In addition, the person shall pay to the Receiver General, on or before the person’s balance-due day for the year, the remainder of the premium as estimated under section 152.23. However, paragraphs (a) and (b) do not require the payment of any amount in respect of the person that would otherwise become due after the death of the person.

  • 2009, c. 33, s. 16

Marginal note:Interest on unpaid premium

  •  (1) If the amount paid by a self-employed person on or before the person’s balance-due day for a year on account of the premium required to be paid by the person for the year in respect of the person’s self-employed earnings is less than the amount of the premium so required to be paid, the self-employed person shall pay to the Receiver General interest, at a rate per year prescribed by regulation made under subsection (5), on the difference between those amounts from the balance-due day for the year to the day of payment.

  • Marginal note:Interest on instalments

    (2) In addition to any interest payable under subsection (1), if a self-employed person, being required by section 152.25 to pay a part or instalment of a premium, has failed to pay all or any part of a premium as required, the person shall, on payment of the amount the person failed so to pay, pay to the Receiver General interest on the amount, at a rate per year prescribed by regulation made under subsection (5), from the day on or before which the person was required to make the payment to the day of payment or the beginning of the period in respect of which the person is liable to pay interest on the amount under subsection (1), whichever is earlier.

  • Marginal note:Farmers

    (3) For the purposes of subsection (2), if a self-employed person is required by subsection 152.25(2) to pay a part or instalment of a premium in respect of their self-employed earnings, the person is deemed to have been liable to pay on or before the day referred to in that subsection a part or instalment computed by reference to whichever of the following that gives rise to the least amount required to be paid by the person on or before that day:

    • (a) the premium required to be paid by them for the year in respect of their self-employed earnings;

    • (b) the premium required in respect of their self-employed earnings for the preceding year; or

    • (c) the amount stated to be the amount of the instalment payable by them for the year in the notice, if any, sent to them by the Minister of National Revenue.

  • Marginal note:Other persons

    (4) For the purposes of subsection (2), if a self-employed person is required by subsection 152.25(3) to pay a part or instalment of a premium in respect of their self-employed earnings, the person is deemed to have been liable to pay on or before each day referred to in that subsection a part or instalment computed by reference to whichever of the following that gives rise to the least total amount of those parts or instalments required to be paid by them by that day:

    • (a) the premium required to be paid by them for the year in respect of their self-employed earnings;

    • (b) the amounts determined under paragraph 152.25(3)(b) in respect of them for the year;

    • (c) the amounts stated to be the amounts of instalment payable by them for the year in the notices, if any, sent to them by the Minister of National Revenue; or

    • (d) the premium required in respect of their self-employed earnings for the preceding year.

  • Marginal note:Regulations

    (5) The Minister of National Revenue may, with the approval of the Governor in Council, make regulations, prescribing a rate for the purposes of each of subsections (1) and (2).

  • 2009, c. 33, s. 16
 
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