Supplementary unemployment benefit plan (SUBP)

A supplementary unemployment benefit plan (SUBP) is a plan established by an employer or group of participating employers to top up employees' employment insurance (EI) benefits during a period of unemployment due to a temporary or indefinite layoff for:

health-related benefits
maternity, parental, compassionate care, family caregiver leave
sickness, accident, or disability
temporary stoppage of work
training

A SUBP may be registered or unregistered. A SUBP may be registered with:

Service Canada, if the plan meets the requirements of article 37 of the Employment Insurance Regulations
the minister of national revenue (Canada Revenue Agency), if the plan satisfies the conditions for registration under section 145 of the Income Tax Act.

Registered SUBPs offer certain advantages for the employee and the employer over unregistered plans.

If an employer's contributions are made to a SUBP that does not qualify for registration with the minister of national revenue (Canada Revenue Agency), then any top-up amounts paid out of the plan to the employee by an employer or a trustee out of the plan are considered to be income from an office or employment. This is true whether the SUBP is registered with Service Canada or not.

CPP contributions

Deduct CPP contributions from:

Payments received under a supplementary unemployment benefit plan (SUBP) that does not qualify as a SUBP under the Income Tax Act, such as maternity and parental top-up amounts paid by the employer.
Amounts paid under a SUBP that does not qualify as a SUBP under the Income Tax Act, but where the plan is registered with Service Canada. Examples of such payments would include EI benefit payments supplemented by the employer because of a temporary stoppage of work, training, illness, injury or quarantine, and payments for sick leave credits.

EI premiums

Do not deduct EI premiums on top-up payments of EI benefits if they were paid to an employee:

because of a temporary stoppage of work, training, sickness, accident, injury, or quarantine if the SUB plan is registered with Service Canada
for maternity, parental (including adoption), compassionate care or family caregiver leave, whether the SUBP is registered with Service Canada or not, if the following two conditions are met:
- the total amount of your payment and the EI weekly benefits combined do not exceed the employee's normal weekly gross salary
- your payment does not reduce any other accumulated employment benefits such as banked sick leave, vacation leave credits, or retiring allowance

Income tax

Deduct income tax from top-up amounts paid under a SUBP, if the plan does not qualify as a SUBP under the Income Tax Act even if the plan is registered with Service Canada.

Reporting

T4 slip

Declare in Box 14 – Employment income of the employee's T4 slip any top-up amounts paid under a SUBP (such as employer-paid maternity, parental, compassionate care or family caregiver leave top-up amounts) that does not qualify as a SUBP under the Income Tax Act whether the plan is registered with Service Canada or not.

T4A slip

Declare under Code 152 – SUBP qualified under the Income Tax Act in the "Other information" section of the recipient's T4A slip any top-up amounts paid under a SUBP that qualifies as a SUBP under the Income Tax Act. Do not include maternity/parental top-up amounts, as these should be included on the employee's T4 slip.

Forms and publications

Information circular IC72-5R2, Registered Supplementary Unemployment Benefit Plans – information about registering your SUBP with the CRA

Page details

2026-07-30

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