# EI Exemption Question



## Kitty3008 (Oct 1, 2016)

New poster, old lurker. Please be gentle for my first post!

I've looked on several pages and could not find the answer...

I own my own business, and recently found out I'm EI Exempt since I'm 100% owner/shareholder/director, etc.

Is there a special exemption form to fill out, or do I just file with CRA and leave out the EI section?

Thanks so much!


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## Market Lost (Jul 27, 2016)

Regulations like this can change frequently. I'd suggest you contact Service Canada, to see what forms if any you need to fill out.


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## ian (Jun 18, 2016)

My understanding is you pay EI if you are being T4'd. Sounds like other you will be taking it as business income/income or dividends to me.

If it is other income you will have to pay CPP-your share and the share that an employer would otherwise have to pay.


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## naysmitj (Sep 16, 2014)

Kitty3008 said:


> New poster, old lurker. Please be gentle for my first post!
> 
> I've looked on several pages and could not find the answer...
> 
> ...


Contact your accountant regarding this question as you are likely exempt because you may not be able to collect EI.


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## Plugging Along (Jan 3, 2011)

Kitty3008 said:


> New poster, old lurker. Please be gentle for my first post!
> 
> I've looked on several pages and could not find the answer...
> 
> ...


Confirm with your accountant if there is a form, ours set us initially. It can be either either T4 (employment income) and of course on t5 (divendend) income there is no ei or cpp.

There is actually a provision where you can opt in to pay EI (both employee and employer) portion for selected benefits (mat and perternity) leave, so you can get the benefits. However, once you start paying, you can not ever opt out on the future, so you need to run the calculations on your situation.

YOu can also opt out for CPP or opt in, we choose to opt in for CPP abut not EI, as we will not be having any more kids.


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## Market Lost (Jul 27, 2016)

Plugging Along said:


> YOu can also opt out for CPP or opt in, we choose to opt in for CPP abut not EI, as we will not be having any more kids.


Not sure what you mean here by opt out. There is no provision to opt out of CPP, unless you are collecting it already. If you only collect dividends from a corporation, then you are able to avoid CPP, but this isn't an opt out. 

Edit to note that there is an ability to opt out of CPP if you are employed and self-employed at the same time, but it is under specific rules.


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