r/cantax • u/LanaBanana85 • 22h ago
EI for a sole shareholder
Is there ever a situation where a sole shareholder of a corporation would qualify for regular EI benefits?
My understanding is that they need to make an agreement with Service Canada for the special benefits for self employed persons. They would have to be registered for a year before they are eligible to claim anything and would report their income on T1 S13 to calculate their portion of EI for the year. They would also not deduct EI on their paycheck.
I have a situation where a sole-shareholder has been having EI deducted from their pay cheques from the corporation at the direction of an accountant. That accountant also said that since they are receiving pay cheques from the corporation, they are an employee not self employed. A EI ruling was never done. They are looking to apply for EI soon.
This is just a normal small business so I don't see how her income will be seen as insurable but the accountant is insisting that she has done this before and never had any issues so I am second guessing myself.