Entrepreneurship & Small Business

if you own a corporation and work ft, are you still eligible for EI?

  • Last Updated:
  • Sep 7th, 2017 9:58 pm
[OP]
Sr. Member
Feb 14, 2004
912 posts
55 upvotes
SCARBOROUGH

if you own a corporation and work ft, are you still eligible for EI?

I am currently work full time, and paid the EI premium on every pay cheque I get. If i plan to incorporate my small business (selling stuff on eBay), will I still eligible for EI if I get let go from my FT job?
many thanks,
Alex
8 replies
Jr. Member
Oct 27, 2012
181 posts
67 upvotes
Shwa
Yes, but in order to be eligible make sure you tell them that you are not working on your business from Mon-Fri, 9-5pm. You have to be looking for employment during those times and be available to work.
Deal Addict
Jul 7, 2004
4542 posts
484 upvotes
Yes, you pay into it and are entitled to it just like everyone else. Think of it like this... you go home and work on a business, other people go home and do other things. Shouldn't take away your right to get it.

But the point of EI is to pay you while you look for work. So you have to state you are looking for a job.
Deal Addict
Jul 30, 2003
1557 posts
64 upvotes
Toronto
What if his incorporated small business generates income? Even if he takes no $ out of the business, he is still a director of it. Wouldn't the EI department take that into consideration?
Deal Addict
Mar 16, 2006
1899 posts
374 upvotes
No...if you are officers in Corporation, you are exempt from paying EI. There is too big of a risk for abuse...you don't pay or collect EI.
[OP]
Sr. Member
Feb 14, 2004
912 posts
55 upvotes
SCARBOROUGH
thanks for the input. Yes, I am hearing mixing messages. 1. You are eligible for EI as long as you have been paying employment insurance through your work despite you have your own business. 2. If you are the director or president of the corporation, then you are not eligible for EI...
Member
User avatar
Jul 19, 2006
294 posts
37 upvotes
jookid wrote:
Aug 8th, 2017 12:37 pm
Yes, but in order to be eligible make sure you tell them that you are not working on your business from Mon-Fri, 9-5pm. You have to be looking for employment during those times and be available to work.
^^^ We have a winner. As long as you aren't working for your business from 9-5, you are eligible for EI. The comment about business owners not being able to collect EI; that is applicable when your sole source of income comes from your corporation - must be arms length employment if you want to collect EI.

If you get laid off from your job, you must show an attempt to be looking for employment through the day, and at night time, as long as you are running your business through a corporation, and not sole proprietorship, you are good to go for EI.
Deal Expert
User avatar
Jan 27, 2004
36486 posts
2431 upvotes
Toronto
joongpark wrote:
Aug 10th, 2017 4:27 pm
No...if you are officers in Corporation, you are exempt from paying EI. There is too big of a risk for abuse...you don't pay or collect EI.
Theres that arms length rule. If its a corporation and youre a director... thats your own arm!
The length of that arms length would be negative infiniti. Its like mr. Fantastic giving him self a hug
Sr. Member
User avatar
Jan 1, 2009
782 posts
130 upvotes
Vancouver
Lots of misinformation here. If you own more than 40% of the shares of the CCPC (Canadian Controlled Private Corporation), you are not eligible for EI, especially if you are the sole shareholder. Simple as that.
PS: I'm a CPA

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