Regarding the tax treatment of supplementary maternity benefits paid under a plan for Quebec's subsidized childcare centres, the Directorate indicated that:
- the benefits paid were income that should be reported in Box 14 of the T4 slips and was subject to source deductions; and
- an employment insurance (EI) premium deduction must be made, unless:
- The total amount of the combined supplement and weekly EI benefits does not exceed the employee's gross regular weekly earnings; and.
- The supplement does not reduce the employee's accrued credits such as for a retiring allowance, unused sick leave or vacation leave.