Grants International Inc.

Grants International Inc.

December 30, 2009 15:07 ET

Bill C-56 Helps Self-Employed Collect EI in Special Circumstances

It DOES NOT Make Their Related Employees Insurable

WINNIPEG, MANITOBA--(Marketwire - Dec. 30, 2009) - Many Canadians have heard about the recent change made by the Harper government to the Employment Insurance act. This release clarifies that it does not include any children, spouses, parents or siblings who work in a family business.

The change under Bill C-56 is titled: "Fairness for the Self-Employed Act." This means that people who are self-employed as a sole proprietor or who own more than 40% of the shares in an incorporated company, can now opt into the EI system and receive EI benefits for bona fide work interruptions such as maternity, parental, sickness and compassionate care leave.

Darren Earn, President of Grants International, the EI Refund Experts, points out that: "In order for the government to protect taxpayers from people who would take advantage of the EI system, Bill C-56 does not allow self-employed individuals to claim EI for work interruptions such as layoffs or company shutdowns because that would open the doors for abuse of the system."

Earn knows the EI system inside and out having helped over 10,000 family businesses and their related employees recoup over $40 million in unnecessary payments made to the EI system.

Catching the cheaters is the reason why, for the past 18 years, the EI act has said: "Insurable employment does not include…related people" because they are in a position where they can take advantage of the system.

"The government safeguards itself from having to pay out EI benefits to people related to the owner just like it is now safeguarding itself with Bill C-56." says Earn. "Without this exclusion, there's nothing stopping an unscrupulous business owner from laying off his son, or himself now, to collect EI during the summer and then be hired back in the fall."

"The government has applied this same logic to self-employed individuals." says Earn.

So if you work for or employ family and pay EI, you should seek out professional assistance to help you obtain a ruling and find out now whether or not you would be eligible for EI benefits. Because if you're not eligible for benefits then you would be entitled to a substantial EI refund and future savings.

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Grants International is a Canadian-owned company established in 1991 and deals exclusively with obtaining Employment Insurance refunds for family businesses across Canada. Their expertise has helped over 10,000 Canadian family businesses and their related employees recover and save over $40 million in EI premiums.

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