Supplemental Unemployment Benefit Plan (SUB Plan)

CRA provides full details here

  • Pre-existing (i.e. pre COVID-19) plan that allows employers to increase employee’s weekly earnings without impacting EI benefits where:
    • Temporary stoppage of work
    • Illness, injury or quarantine
  • Employee ceases work completely and the employer wishes to “top up” their earnings.
  • What is the benefit? Employee can receive 95% of their normal weekly earnings where EI pays 55% of the weekly earnings up to approximately $54,000 (annualized) and the employer pays the balance.
  • Employer must register the SUB Plan with Service Canada
  • Key steps to registration include:
    • Meet the Plan Requirements – i.e. Prepare a SUB Plan based on the example at this link: Sample SUB Plan
    • Fill out the SUB Plan Registration Form located here: SUB Plan Registration Form
    • Additional documents – some companies may need to submit additional documents as described here: Additional Documents – SUB Plan
    • ROE – to be filled out as required by the SUB Plan. See the following link – ROE for SUB Plan
    • Note:
      • Registration date is the date the plan is submitted to Service Canada
      • Any amounts paid to an employee that is on EI prior to the registration date will be treated as earnings and would likely reduce the employee’s EI benefits
  • CERB and SUB Plan – we presume that the ROE indicating the SUB Plan would allow the employee’s application to still be processed through EI (and not the CERB program).
  • If the employer is eligible for the Canada Emergency Wage Subsidy, it will generally be advantageous to claim the wage subsidy.