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Does Severance Pay comes under special benefits ??

A

Atheist9

Star Member
Nov 11, 2017
59
5
Dears, I have a query On Form IMM 5748 INCOME SOURCES FOR THE SPONSORSHIP OF PARENTS AND GRANDPARENTS

Under Source of Income - (e) Amounts Paid to you under the Employment Insurance Act, other than the special benefits.

Does Severance Pay comes under special benefits ?? or it should be deducted from Line 150 income?

Please advise.
 
Wakki said:
file your tax and use the NOA
Click to expand...

Thanks @Wakki for your response.

Taxes have already been filed as this is related to calendar year 2016. Worked for an organization for few years. In Jul 2016 job got redundant and Severance Pay was paid as salary continuance as regular pay (for appx 3 months).
In NOA it is nowhere mentioned but On Form IMM 5748 Under Source of Income - (e) Amounts Paid to you under the Employment Insurance Act, other than the special benefits - Any payment got under Employment Insurance Act should be reduced.

Confusion is how to calculate that Severance Pay and if that should be deducted?

EI though was never applied and received.

Seniors please help.

@scylla
@Rob_TO
@canuck_in_uk
@canuck78
@Buletruck
@razerblade
@oceanslands
@legalfalcon
@cansha
 
Last edited:
Atheist9 said:
Thanks @Wakki for your response.

Taxes have already been files as this is related to calendar year 2016. Worked for an organization for few years. In Jul 2016 job got redundant and Severance Pay was paid as salary continuance as regular pay (for appx 3 months).
In NOA it is nowhere mentioned but On Form IMM 5748 Under Source of Income - (e) Amounts Paid to you under the Employment Insurance Act, other than the special benefits - Any payment got under Employment Insurance Act should be reduced.

Confusion is how to calculate that Severance Pay and if that should be deducted?

EI though was never applied and received.

Seniors please help.

@scylla
@Rob_TO
@canuck_in_uk
@canuck78
@Buletruck
@razerblade
@oceanslands
@legalfalcon
@cansha
Click to expand...

Not sure why you think severance pay is an EI benefit. It's income.
 
canuck_in_uk said:
Not sure why you think severance pay is an EI benefit. It's income.
Click to expand...

Thanks a lot @canuck_in_uk for your response and input.

Actually I was going through this link https://www.canada.ca/en/services/benefits/ei/earnings-chart.html#bonus and go confused. Not sure I am not able to understand this content fully (you can search Severance Pay on this Page).

On other side I think all amounts under Employment Insurance Act are paid by the government whereas Severance Pay is paid by the employer.

Thoughts?

God Bless!!
 
Atheist9 said:
Thanks a lot @canuck_in_uk for your response and input.

Actually I was going through this link https://www.canada.ca/en/services/benefits/ei/earnings-chart.html#bonus and go confused. Not sure I am not able to understand this content fully (you can search Severance Pay on this Page).

On other side I think all amounts under Employment Insurance Act are paid by the government whereas Severance Pay is paid by the employer.

Thoughts?

God Bless!!
Click to expand...

All that chart is saying is that severance pay counts as earnings on which you have to pay the applicable EI deduction.
 
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