Chartered Professional Accountants

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.

NEWS

ADDRESS

#402 - 130 Brew Street
Port Moody, BC V3H 0E3
Phone: (604) 939-2929
Fax: (604) 936-4002
Website: http://gregoryyick.ca
Email: info@gregoryyick.ca

SERVICING

Greater Vancouver and Fraser Valley including Vancouver, North Vancouver, West Vancouver, Richmond, Burnaby, New Westminster, Port Moody, Coquitlam, Port Coquitlam, Pitt Meadows, Maple Ridge, Delta, Surrey, Langley, Aldergrove, Abbotsford, Mission, Whistler, Squamish, Tsawwassen