Payments from a supplementary unemployment benefit plan

From Canada Revenue Agency

Supplementary unemployment benefit plans (SUBP) can either pay work-related or family-related benefits. For income tax purposes, all payments must be included in the employee’s income in the year they are received.

Payments for work-related leave

For temporary stoppage of work, training, illness, injury or quarantine, the combined total of SUBP benefits and employment insurance benefits are limited to 95% of an employee’s normal weekly earnings.

Example:

Normal weekly earnings = $950.00
Maximum benefit (95% of $950.00) = $902.50
Less the employment insurance benefits (55% of weekly earnings) = $522.50
Max SUBP could pay ($902.50-$522.50) = $380.00

Payments for family-related leave

For maternity, parental, compassionate care, or family caregiver leave, the combined total of SUBP benefits and employment insurance benefits can be up to 100% of an employee’s normal weekly earnings.

Example:

Normal weekly earnings = $950.00
Maximum benefit (100% of $950.00) = $950.00
Less the employment insurance benefits (55% of weekly earnings) = $522.50
Max SUBP could pay ($950.00-$522.50) = $427.50

Related link

• Employment Insurance Regulations, sections 37 and 38