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Difference between revisions of "Timing for Reporting on Employment Insurance (8:X)"

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== C. Self-Employment While Claiming EI ==
== C. Self-Employment While Claiming EI ==


Self-employment and employment as an independent contractor are '''not''' insurable employment. Those who fall under this category are not eligible for employment insurance benefits (see s 5 of the ''EI Act''),and are not even considered part of the workforce for attachment purposes. This means that a person returning to insurable employment after one or more years of self-employment will be treated as a re-entrant to the workforce, and will need 910 hours of work to qualify for 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 toreceive certain special benefits, but not regular benefits .


Many people get into trouble for trying to start their own business while receiving benefits. Failure to report such activity will usually  lead to overpayments and penalties or charges for misrepresentation. 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-employmentis“ so minor in extent that a person would not normally follow it as a principal means of livelihood”. 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, he or she 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, he or she 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.


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