Running a business while on mat leave

[Fozzie_DeBear]

Hi guys,

I have a question about maternity leave and running a business while on leave. I know that if you have a business and draw a salary or declare a dividend it will reduce your EI. However, what if you have a company (say a consulting company) and your incorporated company keeps all its earnings and you don't draw salary or dividends until EI is over (or the following tax year). My wife has some great clients and wants to keep them while on Mat leave.

Any advice or resources are gratefully appreciated.

[Northendzone]

Resources?

How about the government of Canada.

Given the nature of this question, do you really want to make a decision based on the advice of the Internet? Go to the experts

[Locke]

Was she making Voluntary EI payments as a self-employed individual?

PM me, I should be able to help you.

[verda13]

Originally Posted by Northendzone

Resources?

How about the government of Canada.

Given the nature of this question, do you really want to make a decision based on the advice of the Internet? Go to the experts

Very helpful, just call 1 800 O-Canada, that should be fun...

[GGG]

My understanding is that any employment income is reportable and after $250 per week is deducted.

So being paid by your company would definitely count as employment income. I'm have no idea how dividends are counted.

[Locke]

Originally Posted by GGG

My understanding is that any employment income is reportable and after $250 per week is deducted.

So being paid by your company would definitely count as employment income. I'm have no idea how dividends are counted.

Yes, but if this individual is primarily self-employed and made payments under certain programs the rules are different, both for wages and dividends.

[Fozzie_DeBear]

Originally Posted by Locke

Yes, but if this individual is primarily self-employed and made payments under certain programs the rules are different, both for wages and dividends.

I'll shoot you a PM...