A Money Coach in Canada

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One way to become eligible to collect employment insurance benefits is to set up a corporation and become its employee. According to the EI Act, in order to qualify as an EI insurable employee of the corporation, you must not control more than 40% of its voting shares. And you must maintain an arm’s length relationship with any shareholder who controls the voting shares of the corporation, which rules out spouses and other family members as controlling shareholders.

Basically, incorporation will enable you to participate in the EI program if you hand over control of your business to someone outside your family and your employment conditions are equivalent to those of any other employee in a similar position.


Have an accounting question? Submit it as a comment so it can be answered in a future “Ask an Accountant” entry.


About the Author

Imagine if Canadians were known for being all over their money. Engaged. Proactive. Getting out of debt. Savvy. Saving. Generous. Nancy wants to help. Nancy started her own journey with money over 15 years ago, and formed her company “Your Money by Design” in 2004 to help others along the same path. It’s not the usual financial advising/investment stuff. It’s about taking control of day-to-day finances –managing monthly cashflow effectively, spending appropriately, getting out of debt, saving. If you're ready to take control over your finances, pop by her business site, YourMoneybyDesign.com


  1. Thanks for following up on that Nancy!


    Dec 14, 2007
  2. my pleasure – and the tx goes to my fabulous accountant, Mindy, who not only knows numbers, not only knows the stories the numbers tell, but also has taught/mentored me about things like micro-credit lending, and how money can do extraordinary things in the world.


    Dec 15, 2007

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