[Canada] Top-up payments for employees on leave

If you have an employee who is currently on leave, Wave offers Canadian employers the ability to add a top-up payment to their next pay at no extra cost.

Wave offers the following types of top-up payments for Canadian employers:

  • Maternity
  • Parental (including adoption)
  • Compassionate care
  • Family caregiver

Top-up amounts are not considered regular earnings and are not deducted from the employees’ EI benefits. Top-up amounts are still subject to Canadian Pension Plan (CPP) contributions and income taxes. Employers who provide top-ups to maternity, parental (including adoption), compassionate care, or family caregiver benefits do not have to register their plan with Service Canada. Top-up payments can be paid to employees while they wait for their EI benefits.

Wave recommends keeping records to show the effective date of the plan and that the following requirements were met to prevent the amount of the top-up being deducted from the employee's EI benefits:

  • Payments are added to the employee’s EI weekly benefits and the combined amount does not exceed the employee’s normal weekly earnings from employment—100% of gross salary; and
  • Payments are not used to reduce other accumulated employment benefits such as banked sick leave, vacation leave credits, or severance pay.

Here’s how to add a top-up payment to an employee on leave:

  1. Under the Employees tab, select the employee who will be receiving the top-up.
  2. Under their employee profile, go to Benefits & Deductions > Add to Pay.
  3. Select a Supplemental Family Benefit from the drop-down menu and add the additional payment details.
  4. Choose whether you want the benefit to occur either every pay cheque (every pay period) or every month.
  5. Upon saving, this top-up benefit will appear on your next payroll for your employee.

The employee must be placed on leave first in order to add the supplemental family benefit.