26 April 1990 Ministerial Correspondence 900494 F - Unemployment Insurance Premiums on Deferred Salary Leave

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

SUBJECT: Unemployment Insurance Premiums Deferred Salary Leave Plans ("Plan") Section 6801 of the Income Tax Regulations

Enclosed, for your use, is a copy of a recent letter from 19(1)

They are concerned about this Department's position that in the case of a plan no unemployment insurance premiums are to paid in respect of deferred salary during the period of leave.  In particular, this position could have a negative impact upon employees taking maternity leave following the period of leave, or upon employees who return to their jobs after such leave and are laid off.  They are seeking an acceptable way of providing such employees with benefit entitlements under  the Unemployment Insurance Act, 1971 and have outlined an optional approach whereby four years salary would simply be spread over five years.

We request that you review  19(1)  suggested approach and, if appropriate, respond to her directly.  Should you write to her kindly send us a copy of your reply.

for DirectorFinancial Industries DivisionRulings Directorate