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| EI Exempt Employment
There are certain types of employment which are not considered insurable and for which you do not deduct EI premiums. For example, you do not deduct EI premiums when you and your employee do not deal with each other at arm's length. This includes individuals connected by blood relationship, marriage, or adoption. However, an employee who does not deal with you at arm's length can be in insurable employment if you have negotiated a similar contract with a person that you deal with at arm's length. This decision is based on the terms and conditions of employment, and the remuneration paid for the work done.
Canada Revenue Agency (CRA) publishes a guide which summarizes the types of employment not insurable for EI purposes HERE.
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