News Category: Business News

08
Feb

SAVING THE EI PREMIUMS ON WAGES TO FAMILY MEMBERS

EI premiums, including the employer portion, amount to 2.4%.  For payments made to family members, it is possible to save this amount by requesting a ruling from the Tax Department.

In order to save the amount, the family member must demonstrate that they have terms and conditions different from a regular employee.  Some examples would be, more flexibility in determining work hours, signing authority on bank accounts, or compensation tied to business profitability.

Prior to requesting a ruling though, it is important to consider other relevant factors such as possible upcoming maternity leaves and the need for EI insurance in the event of a lay off of the family member.

Contact us to help you evaluate whether this would be of benefit to you.


Gregory & Associates