When to start deducting support payments

You must start deducting the support payments no later than the first payday that falls 14 calendar days after you are served with a Support Deduction Notice.

If you have an employee who has been ordered to pay support by the court, we will send you a Support Deduction Notice for that person.

The Notice may set out:

  • an ongoing support amount only (e.g., monthly payments)
  • arrears only (e.g. a lump sum amount which may include a repayment schedule), or
  • a combination of the ongoing amount and arrears.

When you receive the Notice, you will:

  • calculate and deduct the support payments from your employee’s earnings, and
  • send the payments to us.

How to calculate deductions

  1. Begin with the gross income. This includes:
    1. salary/wages
    2. commissions
    3. bonuses
    4. profit sharing
    5. vacation, termination and severance pay
  2. Exclude any reimbursements made to the employee for expenses covered by a medical, health, dental or hospital insurance contract or plan.

  3. Subtract the following statutory deductions:
    1. Income Tax
    2. Canada Pension Plan
    3. Employment Insurance
    4. union dues, and
    5. any other deductions that may be prescribed by Regulation.

    The result is the net income.

  4. Send us the amount set out in the Support Deduction Notice, up to a maximum of 50 per cent of the payor’s net income.

If the amount in the Notice is more than 50 per cent of the payor’s net income, you should still only send us 50 per cent of the net income. You must also let us know in writing (by fax or letter) that this is the case.

Here are examples of possible scenarios you may encounter.