EI to farm families

[TOM4CWB]

For Immediate Release (@10am EST):
Grain Growers Pleased to see Parental Benefits Extended to Farm Families
(Toronto, Tuesday, November 3, 2009) – Today’s announcement by the Government of Canada to extend EI benefits such as maternity and other care leaves to farmers is very welcome.

“70% of all farms in Canada have off-farm income,” said Richard Phillips, Executive Director of the Grain Growers. “In many cases families have made a conscious decision to enter the workforce to be able to access benefits that many Canadians take for granted.”

“Basic things like maternity, paternity, parental care and compassionate leave are important for everyone’s quality of life.”

“If the spouse or partner in one family works off farm, they have had access to the financial support provided by these programs, while the next family is on their own, even though both family members have worked full time contributing to the farm.”

“Programs like these can be a critical decision factor for young families debating whether to take over the family farm or work elsewhere. Parents today are more active in sharing parental duties and this could allow access to hire replacement labour for a period of time.”

The Canadian Government announced today that EI benefits will be made available to farmers, small business owners and other self-employed trades people.

“This could be the difference as whether one member of the family has to seek off farm employment because now families will have a choice,” said Phillips. “With over 200,000 farms in Canada, if even 10% of them choose to take advantage of these programs, this could help ensure another 20,000 more young families staying on the land.”

“This has huge potential for quality of life in rural Canada.”

The Grain Growers of Canada represent over 80,000 farmers from across Canada through its 14 commodity organizations.

For more info on the Grain Growers, please visit www.ggc-pgc.ca.

- 30 -

Media contact: Richard Phillips
613-875-1795
phillips@ggc-pgc.ca

I wonder how CAIS offsets these benefits?

[crusher]

I hope it stays optional. You have much left Tom? Gotta head out and dry canola for the neighbour.

[fjlip]

So... how would we be assessed for premiums and how would we collect if I am never with out work on the farm? EI is based on being out of a job, does not compute.

[Hopperbin]

Have a baby

[checking]

"Parents today are more active in sharing parental duties and this could allow more access to hire replacement labour for a period of time." Yeah, like temporary farm labour is so easy to accomplish.

Apparently, if you have two farm employees, you can not cover one with EI and not the other.

I'd expect the same rule would apply with a farm couple.

Hopper, I think with your luck the baby would come in the dead of winter, and you wouldn't qualify for EI!!!!!

[fjlip]

So you have a baby and claim to NOT farm for year, hire another to do your work, so that you can spend the year in the house with baby. The premiums go on forever, you cannot opt out once your in. Got it. More "taxes" on me.

[magnum]

The federal government's plan to extend maternity, parental, sickness and compassionate care benefits through the Employment Insurance (EI) program to farmers and other self-employed Canadians is seen as a major potential boon for rural Canada.

Federal Human Resources Minister Diane Finley announced the planned benefits Tuesday morning in introducing what the government calls the Fairness for the Self-Employed Act.

Under the proposed legislation, self-employed Canadians would be required to opt into the program at least a year prior to claiming benefits. They would also be responsible for making premium payments starting with the tax year in which they apply to the program. For example, with a program start date of January 2010, claims could be made as early as Jan. 1, 2011.

To get EI special benefits, self-employed individuals would need to have earned at least $6,000 in self-employed earnings over the preceding calendar year.

"Overall, the special benefits for self-employed individuals would mirror those currently available to salaried employees under the EI program," the government said.

The self-employed could also opt out of the EI program at the end of any tax year, as long as they have never claimed benefits. If they have claimed benefits, they would have to contribute on self-employed earnings for as long as they are self-employed.

Self-employed Canadians who opt into the program would pay the same EI premium rate as salaried employees, but would not be required to pay the employer portion of premiums, in recognition of the fact that they still won't have access to EI regular benefits.

"Our government knows that self-employed Canadians should not have to choose between their family and their business responsibilities," Finley said in a release. "Extending access to these benefits is the fair and right thing to do. It is good family policy, and it represents one of the most significant enhancements to the EI program in the last decade."

"The self-employed have had little or no income protection to cope with major life events, such as giving birth, caring for a newborn or newly adopted child, being sick or injured, or caring for a gravely ill family member," she said. "This government is now providing these Canadians with greater peace of mind with respect to their future financial security."

"Huge potential"

Programs such as these can be of critical importance for young families debating whether to take over the family farm or work elsewhere, said Richard Phillips, executive director of Grain Growers of Canada, in a separate release Tuesday.

"Parents today are more active in sharing parental duties and this could allow access to hire replacement labour for a period of time."

And such legislation, he said, "could be the difference as whether one member of the family has to seek off farm employment because now families will have a choice.

"With over 200,000 farms in Canada, if even 10 per cent of them choose to take advantage of these programs, this could help ensure another 20,000 more young families staying on the land… This has huge potential for quality of life in rural Canada."

The special benefits available to farm families and others who opt into the EI program would include:


•up to 15 weeks of maternity benefits for birth mothers, covering the period surrounding birth, as a claim can start up to eight weeks before the expected birth date;
•up to 35 weeks of parental benefits for biological or adoptive parents while they care for a newborn or newly adopted child, to be taken by either parent or shared between them (if parents opt to share these benefits, only one waiting period must be served);
•up to 15 weeks of sickness benefits for a person who can't work due to sickness, injury or quarantine; and
•up to six weeks of compassionate care benefits for those who have to be away from work temporarily to provide care or support to a family member who's "gravely ill with a significant risk of death."

Self-employed residents of Quebec would continue to receive maternity and parental benefits through that province's Parental Insurance Program, but they would also be eligible to take advantage of sickness and compassionate care benefits coming from federal EI, the government said.

Should Quebec's self-employees choose to take advantage of the program, they would pay EI premiums at the same rates as employees in Quebec, where rates are already adjusted downward to take the province's maternity and parental benefit plan into account.

Phillips, in the GGC's release Tuesday, noted 70 per cent of all farms in Canada have off-farm income. "In many cases families have made a conscious decision to enter the workforce to be able to access benefits that many Canadians take for granted."

And if a spouse or partner in one family works off farm, he or she has had access to the financial support provided by these programs, Phillips said, "while the next family is on their own, even though both family members have worked full time contributing to the farm."

In all, Finley said, about 2.6 million Canadians are self-employed, and "we think that the self-employed should have the option of getting the same income protection that salaried employees currently receive when it comes to major life events."

[dalek]

Glad to see the right questions being asked.


EI Benefits for self-employed - Farmers need to be aware of more details

GUELPH – The Ontario Federation of Agriculture (OFA) applauds the intent of the recent federal announcement to enable farmers to become eligible for employment insurance benefits. But the OFA wants to ensure this announcement meets agriculture’s needs.

The Federal Government announced intentions November 3, 2009, to implement some Employment Insurance benefits for self-employed Canadians, a category that covers farmers. The OFA warns farmers based on the details provided in the government announcement; they will need to do the math to see if it is in fact a benefit. Will farmers pay excessive premiums into the EI system for comparatively little benefit?

“We need to see the numbers on premiums and benefits at various age ranges before we could recommend this to our members,” says Bette Jean Crews, OFA President.

“The farming community has lobbied for more than a decade for benefits the rest of society has enjoyed, we must be sure that what’s being offered is truly a benefit to the farming community.”

Although consistent with policy the OFA has been asking for, the program warrants caution. “The requirement to pay premiums for their entire farming career may be a costly venture for farmers who may make a small claim once in their lifetime,” she explained.

Farmers, as self-employed workers, will be able to claim maternity, parental and sick leave with EI benefits based on income. “Will the benefits warrant a lifetime of premiums, especially considering farmers typically retire much later than salaried employees?”

[crusher]

Many farms are incorporated and the owner receives dividends as form of income. Am I going to start paying myself a wage to get CPP and EI deductions, don't think so.

[TOM4CWB]

crusher,

Flax still out... couple more days and it might be down to tough!

Good to see options for younger families...

[Hopperbin]

Crusher why wouldn't you pay yourself a wage? If you don't pay yourself a wage you have no CPP when you retire. From what I understand dividends are taxable to the corporation so you pay the corporate tax rate right from 0 up. At least wages are deductible to the corp and the tax rate is 0 to start and low up to a certain point. You should be paying yourself some wage. As far as the EI is concerned I would not pay in unless we were planning to have a baby, then opt back out after done making the family.

[Hopperbin]

I think if your not paying yourself a wage you need a new accountant.

[fjlip]

To get EI special benefits, self-employed individuals would need to have earned at least $6,000 in self-employed earnings over the preceding calendar year.
The self-employed could also opt out of the EI program at the end of any tax year, as long as they have never claimed benefits. If they have claimed benefits, they would have to contribute on self-employed earnings for as long as they are self-employed.

Wages are NOT self-employed, and you can NEVER opt out. Won't work.

[crusher]

Hopperbin,

I've got an accounting firm and I pay them large. I prefer to take the 10% and invest it myself. We've run the numbers enough time to see corp tax with dividend beats paying a wage. I'm still young enough, if the CPP numbers look sexy, I can opt into the program.

[Hopperbin]

Have to stay in for life because want to claim while having a family? Screw that then.