A Registered SUB (Supplemental Unemployment Benefit) plan is option for employers that benefits both employers and employees alike. It allows employers to continue to support employees while the burden of the bulk of their income is carried by Employment Insurance (EI). Registered SUB Plans can be implemented for temporary stoppage of work, training, or illness, injury or quarantine.
There are two factors for understanding how much an employee can receive from EI.
Service Canada will conduct a calculation and assessment of the employee’s earnings. The calculation uses the employee best earning weeks to dictate the benefit they will receive. The number of weeks used for the calculation is based on the economic region.
In general, an employee can receive up to 55% of their earnings to a maximum of $573 per week. This maximum is based on the insurable earnings of $54,200.
Math breakdown:
$54200 * 55% /52 (weeks per year) = $573 per week
Employees can receive the benefit for 14 weeks up to 45 weeks. The duration of the benefit depends on the unemployment rate in your region.
A few scenarios below based on an employee earning multiple earnings, and top ups ranging from 50% to 70%.
Examples of salaries and top ups:
Annual Earnings |
Weekly Earnings |
55% |
EI per week (max 573) |
Top up to 50% |
Cost Per Week |
Top up to 60% |
Cost Per Week |
Top up to 70% |
Cost Per Week |
$ 40,000 |
$ 769 |
22000 |
$ 423 |
- |
- |
$ 462 |
$ 38 |
$ 538 |
$ 115 |
$ 50,000 |
$ 962 |
27500 |
$ 529 |
- |
- |
$ 577 |
$ 48 |
$ 673 |
$ 144 |
$ 60,000 |
$ 1,154 |
33000 |
$ 573 |
$ 577 |
$ 4 |
$ 692 |
$ 119 |
$ 808 |
$ 235 |
$ 70,000 |
$ 1,346 |
38500 |
$ 573 |
$ 673 |
$ 100 |
$ 808 |
$ 235 |
$ 942 |
$ 369 |
$ 80,000 |
$ 1,538 |
44000 |
$ 573 |
$ 769 |
$ 196 |
$ 923 |
$ 350 |
$1,077 |
$ 504 |
Topping up a $50,000 employee to 60% of their earnings for 1 week would cost $48 per week. If topped up for 20 weeks, the employee would receive in total from their employer $960.
To register for this program is very simple process, employers must complete a registration form and create a plan, and fax or mail it to Service Canada.
Step 1 – Register by downloading and completing the Service Canada form found here.
Step 2 – Draft your plan. We have created a template to get you started. Click here to access it.
Aspects of plan to consider:
All employees?
All employees with 1 year of service?
All employees with 5 years of service?
Only specific levels of employees?
The employee will be receiving any benefits during the waiting period
Can be the same as the general top up, but the cost is higher as the employee is not receiving any benefit
Keep in mind that if the bulk of your workforce makes $54,000 and below, the cost will be minimal.
The cost increases greatly for higher paid employees.
Any length of time would be appreciated by employees.
Keep in mind that after 35 weeks within a 52 week period employee will need to be terminated, and paid out lieu of notice if applicable.
These plans can be in place for maximum 5 years.
SUB plans can be modified at any time by informing Service Canada in writing.
Please Note: Multiple plans and registrations forms would need to be completed if employees are on multiple payrolls under different business numbers.
Step 3 - Once the registration form and plan is complete mail or fax all documents to Service Canada.
Mail: Service Canada, SUB Program, PO Box 11000, Bathurst NB E2A 4T5
Courier: Service Canada, SUB Program , 120 Harbourview Blvd., Bathurst NB E2A 7R2
Fax: 506-548-7473
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We have established a dedicated COVID-19 Resource Hub, highlighting areas of business operations that will likely be impacted by coronavirus. Whether you need to discuss your current financial situation and learn what options are available to you, or you want to be guided through the appropriate cash flow management strategies for your business, our team of experts are ready to help you at every step of the way. Please do not hesitate to reach out to your Crowe Soberman professionals for support during these challenging times.
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This article has been prepared for the general information of our clients. Specific professional advice should be obtained prior to the implementation of any suggestion contained in this article. Please note that this publication should not be considered a substitute for personalized tax advice related to your particular situation.
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