Question: How to receive EI benefits if working for spouse

[Lily]

I have a question about being able to receive EI benefits if I work for my spouse.
He is an employee of his own incorporated company and has a sub-contractor who works for him (non-employee) and an actual employee.
We have been discussing the prospect of him hiring me to be an office administrator, but at some point we would like to have a baby so we wouldn't want to lose the opportunity of having maternity and parental benefits.

My position would be completely legitimate - I would actually be working and be paid an appropriate amount for the hours I work, just like any other employee and other office admins elsewhere. Therefore, I believe we would be working at arm's length from each other and that I should still be able to receive EI benefits. Is there a way to find out before taking on this job that I would, in fact, be able to receive benefits or would we just have to cross our fingers and hope that CRA doesn't deny me benefits once I try going on maternity leave?
Has anyone else here had success in receiving benefits if working for your spouse/your spouse receiving benefits if working for you?
As mentioned, I would actually be doing the work - we wouldn't be trying to scam the system!
Thanks.

[Just a Guy]

Owners of companies and their families are generally intelligible to receive EI. The flip side of this is that they generally don't have to deduct it either.

That being said, the government confuses the issue by saying you can receive EI.

http://www.servicecanada.gc.ca/eng/e...relative.shtml

I'd suggest you call, try to get something in writing, then not be surprised when you are turned down for being related.

[Plugging Along]

You are not considered arms length because you are immediate family to the owner.

However, I THINK they did change the laws a few years back that one can pay into EI if it's there own business, and claim for Maternity Leave (not regular unemployment). I am not very good at looking up official bulletins, so maybe someone here can, or you can just call CRA and ask if it is still applicable.

If it is applicable, you will draw a salary, and pay the contributions like everyone else.

[MoneyGal]

You will never be arms-length, because you are married to the owner of the corporation. Your arms-length / non-arms-length relationship is governed by the relationship between you as spouses, not by anything related to your work.

You are not self-employed, so you are not eligible for EI as a self-employed person.

HOWEVER, you are not necessarily uninsurable. Here's the relevant snippet from the Service Canada website:

Is your employment with a related employer considered insurable?

Nothing prevents you from working for a person who is related to you. However, your employment will be insurable only if it is reasonable to conclude that your employer would have hired a non-related person under a similar contract of employment.

All the circumstances of the employment are considered to determine whether a non-related person would be hired under a similar agreement. The circumstances include the following:

Remuneration paid: the amount of earnings or compensation that the employer pays in exchange for the performance of duties, as well as the manner in which it is paid
Terms and conditions of employment: the job requirements, work routine, schedule, benefit plans, etc.
Duration: the frequency and duration of the employment
Nature and importance of the work performed: the necessity of the services performed and their importance to the business operation

/quote

The determination of whether you are eligible or not rests with CRA, not with Service Canada. See this Service Canada web page for more information: http://www.servicecanada.gc.ca/eng/e...relative.shtml

[stardancer]

The rules were changed a few years ago http://www.cra-arc.gc.ca/tx/ndvdls/t...0/317-eng.html

A self-employed person can elect to pay EI premiums; however, once the election is made, he/she cannot go back on it.

This doesn't address the OP's question. See the link in Just A Guy's post for that.

[Berubeland]

I for one found it amazing that they do allow for business owners to claim Maternity Benefits. As his employee/spouse i can't imagine how this would be a problem.