NLMA Parental Leave Allowance
Frequently Asked Questions
When can my
Your benefits can start at anytime, provided it is no earlier
than the date of birth or adoption, is completed during the first year,
and is consecutive. Annual leave, sick leave, and other parental
leave program benefits maybe be used before or after your NLMA
Parental Leave Allowance period.
- How much can
physicians receive from the allowance? Salaried physicians
can receive up to $1,200 per week, but this amount is reduced
dollar-for-dollar by Employment Insurance (EI) benefits. In this
case, the benefit is essentially a “top-up”. EI benefits must be
applied for before applying for the NLMA Parental Leave
proof of such may be requested.
How is the
The "top-up" is
calculated based on the maximum employment insurance (EI)
benefit of $562 gross per week (effective January 1, 2019 and
amended as necessary). In other words, the NLMA
Parental Leave Allowance for these physician parents is $638 per
week ($1,200 minus $562). It is assumed that all such applicants
are eligible to receive the maximum benefit. If this is not the
case, further explanation will be requested of the applicant.
Professional Medical Corporation (PMC)
physicians eligible to receive employment insurance (EI)
benefits while they are on parental leave?
Typically anyone who
owns a corporation, which is the case for PMCs, does not qualify
for EI benefits. They are also not required to make EI
contributions. In order to qualify for EI benefits, a physician
would have to voluntarily register with the Canadian Employment
Insurance Commission prior to leaving on parental leave. Members
who have previously voluntarily registered are entitled to
receive EI benefits if they have reduced the amount of time
devoted to the business by more than 40%. For more information,
members are encouraged to contact
- When should I start
reporting? You may start submitting the
once you receive confirmation that your application has been
reviewed and approved. If your leave start date has past, you
should immediately submit for any period in arrears. If your
leave start date has yet to arrive, you must wait until that
time. The form covers two weeks (the first Monday to the second
Sunday; unless you use the special version for EI recipients
which can cover up to seventeen weeks) and to simplify the process, it is recommended that you
start with the first Monday following your leave start date.
This avoids having to prorate your first and final weeks.
Is my birth/adoption
date the same as my leave start date? Maybe, but not
necessarily. Your leave start date is the date you consider
yourself off for parental reasons. This may coincide with your
birth/adoption date, or it may precede it. For example, you may
be off in the previous weeks for medical reasons. It is
important to note that the date of your first
may be a different date again. For example, you may have stopped
work on July 15, gave birth on August 1, with your first day of
NLMA Parental Leave Allowance being the following Monday.
- Do I report what I
earned or what I received? You must report what you earned
during the reporting period, not what you necessarily received.
As you know, payments tend to lag well behind the dates service
was delivered. This will help you keep weekly income below the
thresholds for benefit reduction.
- What types or income
are exempt and need not be reported? While all sources of
income during your benefit period should be reported to avoid
possible repayment later, some income is exempt and need not be
reported. These include rural retention bonuses, other parental
leave program allowances, the federal
government's Universal Child Care Benefit (UCCB), and the
provincial government's Progressive Family Growth Benefit and
Parental Support Benefit.
- Can payments be
made to a Professional Medical Corporation (PMC)? The Canada
Revenue Agency (CRA) considers these benefits as part of each
physician’s membership in the NLMA. As individuals they are
members, rather than their PMCs, and thus benefits should be
paid as such. If benefits are paid to the PMC, the plan may not
be considered to be a wage loss replacement plan. This could
require additional tax withholdings.
How and when
are payments made?
are by direct deposit only, and must be set up using a
Direct Deposit Form.
Deposits are made once per month. The total time between Report submission
and direct deposit will vary depending on when the Report was
received relative to the direct deposit processing schedule.
Deposits may be delayed further should submissions contain
errors, or required documentation remain outstanding. An e-mail
notification will be sent to you on the day of deposit, but may
not actually appear in your account until later in the day.
- What are the tax
implications of receiving the allowance? The Canada Revenue
Agency (CRA) considers these payments to be a “wage loss
replacement plan” as discussed in Paragraph 6(1)(f) of the Income Tax Act. A T4A will be issued by the NLMA in January
or February of each year for each individual who receives
allowance payments in the previous tax year.
- Will taxes be
deducted from my payments? Under Paragraph 200(2)(f) of the
Income Tax Regulations, there is no requirement to
withhold income tax on a wage loss replacement plan. Thus, tax
will not be deducted at the source.
- How will the T4A
cover retroactive payments? The T4A will cover payments on a
cash basis. In other words, when payments were received, not for
the periods which they covered. Should you receive retroactive
payments from a previous year, these will be reported on the T4A
for the year in which you actually received the payment.
Assistance For assistance,
Newfoundland and Labrador Medical Association
NLMA House, 164 MacDonald Dr., St. John's, NL, Canada, A1A 4B3
(709) 726-7424 | Toll Free (800) 563-2003 | Fax
firstname.lastname@example.org | Web