Supplements to Regular, Sickness or Training Benefits - Frequently Asked Questions
On these pages, you will find the answers to questions that employers ask most often. If you have a question that does not appear on these pages or elsewhere on our site, contact us and one of our staff will gladly help you.
To return to the list of questions, use the arrow below each answer.
- Does the employer need to register the plan used to top-up EI maternity, parental and compassionate care benefits?
- What is a Supplemental Unemployment Benefit (SUB)?
- What are the basic requirements for SUB plans?
- How to register a SUB plan?
- Can I pay SUB benefits during EI's two-week waiting period?
- Are Supplemental Unemployment Benefit payments insurable for EI purposes?
- Are SUB payments subject to payroll deductions?
- How is the registration date determined?
- What happens if my plan does not qualify?
- What happens if my plan meets the requirements?
- Can changes be made to a SUB plan after it is approved?
- Must I have an approved plan to supplement EI benefits?
- How will the employer verify that the employee is receiving EI benefits?
- How often must the employer renew the registration of the SUB plan?
- What if I make changes related to my plan, my address, my payroll deduction account, or to the ownership or structure of my business?
- Must all my employees be covered by the plan?
- What if I have more than one plan?
- How can I receive a copy of the SUB Guide?
- Does the employer need to register the plan used to top-up EI maternity, parental and compassionate care benefits?
No, these types of plans are excluded from the SUB Program. For more information on how to proceed to top-up the employee's EI maternity, parental and compassionate care benefits, please refer to Employment Insurance (EI) supplements to maternity, parental and compassionate care benefits.
- What is a Supplemental Unemployment Benefit (SUB)?
A SUB is a supplemental payment to an employee who is receiving Employment Insurance (EI) benefits during a period of unemployment due to temporary stoppage of work, training, illness, injury or quarantine. These payments are made according to the terms of a SUB plan financed by the employer.
- What are the basic requirements for SUB plans?
All SUB plans must:
- require the employee to be in receipt of EI benefits before SUB payments are made;
- be intended for temporary unemployment;
- be entirely financed by the employer;
- provide for a benefit that will not exceed 95 per cent of the employee's weekly earnings when the SUB payment is added to the EI benefit rate; and
- be registered with HRSDC before its effective date.
- How to register a SUB plan?
A copy of the plan must be included with the SUB registration form . Submit the completed form along with your SUB plan and any additional documents that may be required to:
Service Canada
SUB Program
120 Harbourview Boulevard
P.O. Box 11000
Bathurst, New Brunswick
E2A 4T5
Fax: (506) 548-7473
Employers who are already registered will receive a renewal request, on or prior to the expiry date of their plan. - Can I pay SUB benefits during EI's two-week waiting period?
Yes you can, if your plan provides for such payments.
- Are Supplemental Unemployment Benefit payments insurable for EI purposes?
No. The benefits are not insurable, so you do not need to deduct EI premiums from these payments.
- Are SUB payments subject to payroll deductions?
They may be subject to some payroll deductions such as income tax, and Canada Pension Plan (CPP) contributions. Access the list of Tax services offices and tax centres
.
They may be subject to contributions under the Québec Pension Plan (QPP). - How is the registration date determined?
The registration date of your SUB plan is based on the date on which you submit the plan, if all the conditions are met. Failure to submit all supporting documents could delay the registration date. The plan can be approved for a minimum period of one year and a maximum period of five years, unless it is contained in a collective agreement in which case we can approve the plan for the duration of the agreement.
- What happens if my plan does not qualify?
If your SUB plan does not qualify, Service Canada will inform you of what change(s) would have to be made. If you choose to amend your plan to qualify, you must submit a copy of the amendment.
- What happens if my plan meets the requirements?
When your plan meets all the requirements, Service Canada will advise you of the decision by letter. Also, we will advise the Service Canada Centres of the registration of your plan so that the employee's EI benefits are not reduced by the amount of your SUB payment.
- Can changes be made to a SUB plan after it is approved?
Yes. However, you must notify the SUB Program within thirty (30) days of the date of the change by sending us a copy of the amendment to the plan.
- Must I have an approved plan to supplement EI benefits?
Yes. The effective date of the approval will depend on when you formalize you plan and we receive all the documentation required to make a decision.
- How will the employer verify that the employee is receiving EI benefits?
The employer must also declare how he will verify that the employee is receiving EI benefits.
- How often must the employer renew the registration of the SUB plan?
After the original registration, we will contact you prior to the expiry date of your plan.
- What if I make changes related to my plan, my address, my payroll deduction account, or to the ownership or structure of my business?
You must contact us to provide details of the change.
- Must all my employees be covered by the plan?
No. You can cover any group of employees, i.e. all salaried employees, hourly employees, or a specific union group.
- What if I have more than one plan?
We need copies of all plans you wish to have registered.
- How can I receive a copy of the SUB Guide?
You can:
- view the Guide for the Supplemental Unemployment Benefit (SUB) Program
- download the guide and then print it or
- contact us for a copy.
[ SUB Main Page | Program Guide | Contact SUB ]
