Does my company have to pay Employment Insurance Premiums (EI) for my spouse, if he/she works for my company?
Allan Madan, CA
The CRA’s general guideline is that if you hire a family member, EI premiums are not payable to the CRA. However, if the duties being performed by your family member and their working conditions are the same as if he/she was working for a third party employer (unrelated person), then the CRA will require you to collect and remit EI premiums for your family member.
Note: If your spouse (or other family member) owns more than 40% of the shares of your corporation, then EI premiums are not required to be paid for your spouse.
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
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