How do I set up Supplementary Unemployment Benefit Plan (SUBP)?

Hi there,

You've reached the right place for help. I'd be happy to give you a hand with setting up a Temporary Wage Subsidy in QuickBooks Desktop. 

The Temporary Wage Subsidy for Employers is a three-month measure that will allow eligible employers to reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency (CRA) The following employers are eligible for it:

• employers who are a non-profit organization, registered charity, Canadian-controlled private corporation (CCPC), partnership or sole proprietorship;
• have an existing business number and payroll program account with the CRA on March 18, 2020; and
• pay salary, wages, bonuses, or other remuneration to an employee.

Note: CCPCs are only eligible for the subsidy if their taxable capital employed in Canada for the preceding taxation year, calculated on an associated group basis, is less than $15 million.

The Temporary Wage Subsidy for Employers is limited to the eligible employers listed above.

For more info on how to properly set this up, I encourage you to reference this helpful article here: Temporary Wage Subsidy for Employers - How to calculate and record subsidy in QuickBooks Desktop Can.... 

In case you have other questions, feel free to contact our support team using this link here.

Thank you for the response.  My question was specific to the SUBP offered through Service Canada which is different from the CEWS and the Temporary Wage Subsidy.    I was able to access the information and set up instructions via online chat.   Thanks. 

Can you please share what you were told about how to set this up in quickbooks?

A new payroll item needs to be created as an addition.   Under lists are payroll items.  At the bottom add a new item. 

The screens will take you through the set up.  

Name your item ie. SUB PLAN-department x

Expense your item to the the proper expense account. Wage account that's associated with your item. 

ROE tracking-nothing selected as the earnings are not insurable. 

Tax tracking type-Box 14A

Taxes-choose Federal income tax and CPP and any others that are applicable.

Calculate based on quantity-neither

Default rate and limit-nothing selected. 

Finish. 

Go to individual employee and add this payroll item to the payroll information as an addition manually calculating the amount of the payment.  

Thank you so much!  Very helpful

I followed the steps provided for the 10% wage subsidy and it worked well to adjust my liability balance.  My question, how do I indicate this as income within my books.  I can't do the journal entry specified as the liability account has already been adjusted and therefore I would be adjusting twice.  I hope this makes sense.  Thank you.

I am assuming that you needed to reactivate employee to pay this?  What did you put for new hire date?  Please help lol

This was very helpful!!  I have been searching for weeks on how to add this benefit.  I am assuming that you needed to "rehire" laid off employees in Quickbooks.  

Glad it helped.  Yes you need to rehire the employee.  Add the SUB Plan as an addition in payroll items 

Is vacation pay (4%) paid on this benefit?

Thanks for the information.  That is exactly what I need to do.

Kate

This does not show up for me in Canada as of Sept 2024.

I am looking to add Maternity Pay Top Up for an employee, and of course for it to not include EI but there is no option to add this a pay type, everything has EI. Can someone help with this?

Hi tcpp,

When it comes to topping off a pay type, it best to speak with an accounting professional, to ensure proper calculations associated with applicable deductions.  They'll be able to provide their expertise and best course of action, to ensure a positive outcome on your books.  If you don't have an accountant, we can help you locate a ProAdvisor in your local area.

If you have any other questions, feel free to reach back out.  We would be happy to help!