If you are a taxicab driver who rents a vehicle on a shift basis you are likely eligible for Employment Insurance benefits.
Your eligibility depends on a number of key factors, as established by the Canada Customs and Revenue Agency.
Employment Insurance (EI) is designed to provide temporary benefits to insured workers who lose their job through no fault of their own. EI allows the unemployed individual to receive benefits until he or she is able to find employment (or until the benefits run out).
Generally, self-employed people are not entitled to Employment Insurance benefits, but in the case of taxi drivers there is an exception. The Canada Customs and Revenue Agency addresses this exemption under Special Situations (Employers' Guide - Payroll Deductions, Chapter 8, p.36) which allows many drivers to contribute to EI even though they are otherwise considered self-employed.
The regulation was created at the request of the taxi industry to protect drivers who might go through periods of unemployment.
The regulation applies to drivers of taxis and other passenger-vehicles who:
- Do not own or operate the business; or
- Do not own more than 50% of the vehicle.
Under the Special Situation exemption of the Canada Customs and Revenue Agency, drivers covered by the above criteria are considered employed and eligible to make EI contributions and make claims.
Do I qualify for EI?
As a taxicab driver, you likely qualify if you meet the following criteria:
- You lose your job through no fault of your own and you cannot find work;
- EI contributions have been made on your behalf;
- You have been without work and without pay for at least seven consecutive days;
- You have worked the minimum number of hours required to be eligible for benefits. This number can vary widely from 420 to 910 hours.
How do I contribute?
Premiums are paid on all your net earnings up to the annual maximum salary of $39,000. For the year 2001 this amounted to $2.25 for every $100 of salary up to the maximum. Premiums are not paid (and coverage is not provided) beyond this amount.
Owners and operators of the business (e.g., an owner or a lessee with a second driver) have to pay both the employees and their own share of EI premiums.
How much must be contributed?
If the owner or operator does not know the earnings of the driver (as is usually the case), the amount of insurable earnings is whichever of the following amounts is less:
- the number of days worked in the week multiplied by $100; or
- $500.
Drivers should receive a T4 slip from the owner or operator, stating the worker's share of contributions.
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