CRA indicates that Quebec supplementary maternity benefits subsidized childcare centres are taxable, but may not be subject to EI deductions

CRA indicated that supplementary maternity benefits paid under a plan for Quebec's subsidized childcare centres were taxable income subject to source deductions and T4 reporting, and also were subject to EI deductions unless:

• The total amount of the combined supplement and weekly EI benefits did not exceed the employee's gross regular weekly earnings; and.
• The supplement did not reduce the employee's accrued credits such as for a retiring allowance, unused sick leave or vacation leave.

Neal Armstrong. Summary of 27 August 2020 Internal T.I. 2016-0675801I7 F under s. 6(1)(a).