Steps to Pay EI Premiums on Self-Employment Income
Step 1: Register with Service Canada
Log in to your My Service Canada Account (MSCA)
Enroll in the EI program for self-employed individuals by completing the registration process
Step 2: Calculate Your EI Premiums
EI premiums are calculated as a percentage of your net self-employment income
For 2024, the rate is 1.63% in most provinces (up to an annual maximum amount)
Step 3: Pay EI Premiums
Premiums are paid when you file your annual tax return
Report your self-employment income on Schedule 8 – Canada Pension Plan Contributions and Employment Insurance Premiums in your tax return
The Canada Revenue Agency (CRA) calculates your EI premiums based on your reported income and includes the payment in your tax balance
How to Maintain EI Contributions
Continue paying premiums annually with your tax return
Remain enrolled in the program as long as you want to access EI benefits
Notify Service Canada if your self-employment income stops and you no longer wish to participate
Important Notes
One-Year Waiting Period: Benefits are only available after you’ve contributed for at least 12 months
Non-Reversible: Once you opt in, you cannot opt out unless you cease to earn self-employment income
Maximum Premium: You’ll only pay up to the maximum annual premium, regardless of income
Why This Matters
Paying EI premiums on your self-employment income gives you access to essential financial support during maternity leave, illness, or caregiving responsibilities. It’s a proactive step to ensure you’re covered for unexpected life events.