| April 26, 1990 | |
| Source Deductions Division | Financial Industries Division |
| A.B. Adler | |
| Attention: Mr. L. Mancino | 957-8962 |
| Director | |
| File No. 900494 |
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