EI Benefits for Children Involved in Your Business.
Most farming operations include their children at a young age so that hopefully, one day they may be lucky enough to take over the family operation and then they too can teach their children the ins and outs of farming.
When your children become older and knowledgeable enough to start collecting a wage for their hard work, you have a few things to consider. Is the employment considered insurable in the eyes of the Canada Revenue Agency? Are they eligible to receive EI benefits? Will paying into EI really benefit them?
If your child’s employment with you reasonably concludes that you, as an employer would have hired a non-related person under a similar contract of employment then the employment will be insurable. The circumstances to consider when determining whether a non-related person would be hired under a similar agreement include remuneration paid, terms and conditions of employment, duration, and the nature and importance of the work performed.
To be eligible to receive EI benefits there are a few standard conditions that must be met. Such as having insurable employment, paying EI premiums, and working the required number of hours for your region (between 420 and 700 in Manitoba).
Employment Insurance is a program with no age limit that will provide benefits to eligible individuals with loss of work due to specific life events such as an illness, pregnancy, or education. If your farming operation works on a seasonal basis, your employed children are thinking of starting a family or going back to school to upgrade their skills then you may want to consider EI to avoid a complete loss of wages during their life changes.
If you are considering paying into employment insurance and you are unsure if your children would benefit from it, don’t hesitate to contact our Ag Team and we will help you weigh your options and discuss the best option for you and your farming operation.