APA&TC - Information Library

EI Benefits Extended to Self-Employed

The legislation to extend special benefits (maternity, parental, sickness and compassionate care benefits) received first reading in the House of Commons in November, 2009.

Self-employed individuals can voluntarily opt into the EI program beginning in January 2010. The special benefits available to them will mirror those currently available to salaried employees under the EI program.

Self-employed individuals who opt into the program will be required to pay EI premiums on their self-employed earnings at the same rate as salaried employees; however the employer portion would not have to be paid as they would not have access to regular EI benefits. There will be a stipulation that a self-employed individual will need to opt into the EI program at least one full year prior to receiving any benefits.

The calculations of the EI installments would be due at the same time as the individual’s income tax balance due date. For example they may be due quarterly or on April 30th of the following year.

Should they wish, a self-employed person could opt out of the end of any tax year if they have never claimed any benefits. If benefits have been claimed, there would be no opportunity to opt out for as long as they are self-employed.

My Payment - a new service for businesses and individuals

My Payment is an electronic payment service, accessed through the CRA website, that allows individuals and businesses to send payments directly to the Canada Revenue Agency (CRA) from an account at a participating financial institution.

My Payment is fast and easy to use. The service is provided through Interac^® Online and its many benefits include:

· Immediate payment – no accounting for the time it takes to mail a cheque.

· Safety and security – the payment is completed through your existing online banking service.

· Privacy – no personal information is exchanged between the CRA and your financial institution.

· Simplicity – payments to several CRA accounts can be made in a single transaction.

How do I use My Payment?

1. Select the My Payment option from the CRA Web site (www.cra.gc.ca/mypayment).

2. Compose your payment by listing the accounts and amounts you will be paying. You will need your account information as provided by the CRA.

3. Select the "Pay now" option and then choose your financial institution. You need to be registered for online banking with your financial institution.

4. Log in to your financial institution's online banking with your usual login ID and password.

5. Choose an account from which to deduct your payment.

6. Confirm the payment. You will be automatically directed to a confirmation page. Print or save a copy of your transaction receipt.