# What to expect from the government during mat leave?



## swoop_ds (Mar 2, 2010)

We are expecting our first child in about 7 months (yay!) and have some money set aside, but we will be dependent (atleast somewhat) on the government to help with money.

I'm trying to figure out what we are eligible for and what we will actually get but I am finding it a little confusing.

We both make around $55000, so about $110000 combined. We live in Saskatchewan.

My wife will be taking mat leave and I will continue to work. From what I understand, we would get ($45900*0.55) / 52 = $485.48/wk (before income tax, which I assume they take off at source??? I've never been on EI), so after income tax would be something like $418.27. Is this number more or less correct? Are there other deductions on this?

Also, I think we qualify for the CCTB(some amount that is untaxable, I'm having a hard time figuring this one out) and UCCB ($100, taxable).

Are those three programs the extent of any government help or is there other stuff that I'm missing?

Also, when my wife gets later into her mat leave and if she feels better, is she allowed to work on a casual basis or does that screw everything up?

Sorry about all the questions, we're just excited and anxious and terrified and etc 

-Dave


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## Sampson (Apr 3, 2009)

swoop_ds said:


> We are expecting our first child in about 7 months (yay!)


Congrats!


swoop_ds said:


> would get ($45900*0.55) / 52 = $485.48/wk (before income tax, which I assume they take off at source???


My wife gets $900 biweekly, this is the maximum allowable from EI. The tax is not deducted at source, so make sure you have savings or enough deductions to cover this. The tax bill on this amount is minimal anyway.



swoop_ds said:


> Also, I think we qualify for the CCTB(some amount that is untaxable, I'm having a hard time figuring this one out) and UCCB ($100, taxable).


You may be borderline eligible for the CCTB. Over $60k and you are definitely not eligible, at your salary of $55k maybe a small amount. The UCCB will be given, and given to your wife, but in the future, when she is employed again, it can be attributed to the lower earning person in the relationship.



swoop_ds said:


> Are those three programs the extent of any government help or is there other stuff that I'm missing?


I believe this is, hoping someone out there will tell me we are eligible for more government freebies.



swoop_ds said:


> Also, when my wife gets later into her mat leave and if she feels better, is she allowed to work on a casual basis or does that screw everything up?


She'll lose EI, may qualify for additional CCTB, but not until the following year since these are based on your previous years income levels.

Don't be terrified, having our two boys has been one of the best changes in our lives - good luck!


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## Four Pillars (Apr 5, 2009)

Congrats Dave. 

I could have sworn that income tax was deducted when I was last on EI (four years ago). It wasn't enough however.

CCTB can be paid for net family incomes up to about $105,000, so you should be eligible for some $$. 

Here is a calculator:

http://www.cra-arc.gc.ca/bnfts/clcltr/cctb_clcltr-eng.html

I'm not sure about the EI clawback. I would call Service Canada and ask. You won't just lose all your EI if she earns a bit of money. There is likely a clawback and it probably starts at a certain threshold. Find out the exact numbers and work with that (and report back with that info).


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## CanadianCapitalist (Mar 31, 2009)

Four Pillars said:


> I could have sworn that income tax was deducted when I was last on EI (four years ago).


Congrats. IIRC, income tax is deducted at source on EI payments.


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## swoop_ds (Mar 2, 2010)

Thanks guys! If we get 1900ish before tax a month (900 bi weekly plus 100 baby bonus), that'll be more than enough. Which is a huge relief!

We are going to have about $5000-$7500 saved specifically for this time as well so hopefully that will help smooth out any unforeseen expenses. We're going to try to have a lot of stuff purchased beforehand so that we can use the saved-up money only as we need it


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## sprocket1200 (Aug 21, 2009)

congrats, we just went through this with twins. double the expense!!
though we had no EI as we are small business owners, the tax will be deducted, yet will be minimal. this is a great thing! no free loan for the govt!!

7 months to go is plain bad planning, haha. she will have about half income next year and half the year after. the cctb will be reduced as a result. best thing to do financially speaking would be for her not to return to work and for you not to accept any raises.

craigslist and used saskatchewan will be your friend. don't get the kid too much new stuff as they just outgrow it too fast.


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## swoop_ds (Mar 2, 2010)

Thanks for the reply sprocket. I think we will be using craigslist/etc quite a bit, atleast if I can convince my wife that we don't need all the fangled gadgets and doo-hickies.


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## Sampson (Apr 3, 2009)

Turns out EI has increased. Maximum payout is now $956 biweekly.


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## swoop_ds (Mar 2, 2010)

Is that before or after tax?


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## Sampson (Apr 3, 2009)

after. in you pocket. +$100 UCCB, plus the CCTB. Pretty good deal I think, $20k-$25k/annum after tax. I know some people who barely bring that home working their normal jobs.


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## swoop_ds (Mar 2, 2010)

Yeah that's pretty decent! It's not like we'll be making a 'tonne' of money but the budget will be very doable with that kind of money.

Really quick though, and if you have a minute, how did you arrive at those numbers?

Thanks,
-Dave


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## Rob79 (Feb 16, 2011)

My wife is currently on a mat leave, and when you fill out the paper work you can choose how to deal with tax. We picked the option for them to take the tax off, this leaves us getting $836 every 2 weeks. My wife is a school teacher and maxes the benefit out. We are in Alberta so a bit different then yours but I would say budget $850 every 2 weeks and you should be good.


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## Sampson (Apr 3, 2009)

swoop_ds said:


> Really quick though, and if you have a minute, how did you arrive at those numbers?


2nd mat leave in as many years.

EI - $956 biweekly = $1912/month
UCCB - $100/month
CCTB - unknown

= minimum of $2012/month over 12 months = $24k per year.


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## Seth (Aug 16, 2010)

Could somebody enlighten me on our situation??

We're expecting a baby in a couple weeks and I've been working hard to figure out what to expect...

Province: Nova Scotia
1 Total number of children under 18 years of age
$50,930.00 Your net income
$35,974.00 Your spouse or common-law partner's net income
$0.00 UCCB income
$0.00 UCCB repayment
$0.00 RDSP income
$0.00 RDSP repayment

The online calculator gives me:

CCTB Basic monthly amount: $43.42

That's using last year's income... my income has come up dramatically this year... almost 40k more.

So we should expect:

CCTB: $43.42
UCCB: $100

And her EI??

Any idea what she'd get for E.I here in Nova Scotia given she's on mat leave with a net income last year of about 35k?


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## MoneyGal (Apr 24, 2009)

Your CCTB will be based on the net family income in the tax year when the baby is born. Once the baby is born (in 2012) you will file a bunch of forms which will get your child into the system, but your CCTB won't start until after June of 2013 (after the start of the new CCTB "year", and after your tax return for 2012 has been filed and processed). You should get a lump sum which will cover off your entitlement from the month of birth, and then you will start to receive whatever your monthly allotment for that year is. 

So when you are estimating, you should estimate based on your net income for 2012, and your spouse's net income for 2012. HINT: making RRSP contributions reduces your net income, and thus increases your CCTB.


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## Seth (Aug 16, 2010)

Thanks MoneyGal,

We have a rental property and a small business, it's used to knock down our net income in conjunction with RRSP contributions...

That being said, we've drank the Ramsey Koolaid and have stopped contributing to our retirement, in efforts to become debt free (minus the houses) in about 24 months...

We make great money now, household income over 100k... but we suck at budgeting.

Correction, USED to suck at budgeting.

Paid off $5000+ this month... (RRSP Loan + Back taxes) aiming to do that again next month!

I'm worried however, that her $2000 take home pay (after benefits, RRSP matching contributions and Bond purchases) is going to be substantially less on E.I

Anyone know what a $36,000 a year E.I claim would be bi-weekly?


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## MoneyGal (Apr 24, 2009)

I don't know the answer BUT I can tell you that mom at home can = substantial savings, depending on how you are spending now. Everything from reduced transportation costs, to lower food costs (more food cooked at home), to lower clothing and incidental costs (drycleaning, coffees out, work lunches, miscellaneous work expenditures like office birthday gifts) -- it can all add up. 

Sounds like you are getting set up well financially for this new addition - a very special kind of bond with a very long payout period but good appreciation potential.


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## Seth (Aug 16, 2010)

This is VERY good advice MoneyGal, thanks for reassuring me.

In not having her daily commute to work we stand to save like 200 bucks a month 

Plus only a couple days into her MAT leave, we've already saved a bunch on her eating lunch at home (I've worked from home for years, and have my lunch budget down to .99cents a meal 

EVERY penny now is rolling down that debt mountain picking up momentum as it goes!~


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## MoneyGal (Apr 24, 2009)

Seth said:


> In not having her daily commute to work we stand to save like 200 bucks a month


And that's $200 after-tax dollars - she has to earn even more in order to have that $200 available!


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## sprocket1200 (Aug 21, 2009)

When we did our calculations, we found that the second income needed to be at least $60,000 gross in order to make it financially equal. The value of one parent stayed home is nearly immeasurable. This didn't take into account the extra govt cash that can be received by going to a single income....


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## Maybe Later (Feb 19, 2011)

Be careful about some of the assumptions. Our transportation costs went UP when my wife was on mat leave the first time. It can get boring at home and if there aren't a lot of walkable options (especially at -30 with an infant) and there can be more driving. Things like a dedicated trip to the grocery store that used to be accomplished on the way home from work can creep in if you're not mindful. Of course the trade off was being home 20 mins earlier and a sanity saving errand during the day. It's not all about dollars and cents, but be aware that everyone's situation will differ.


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## Four Pillars (Apr 5, 2009)

With two or more kids, most families can likely show a "profit" from having someone stay home. 

However, you also can't discount the effect on future wages from being out of the work force for several years. My wife didn't really have a great career when she quit, but 7 years later I'm not sure what her job prospects are (if any). 

I'm not suggesting it's a mistake to stay home or anything - just that you have to (attempt to) consider the longer term effects as well.


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## Maybe Later (Feb 19, 2011)

I should also add that it's been a fantastic experience - enough so that we did it two more times and my wife is on her third mat leave (5 month old daughter) 

One or two spouses working has been a really tough decision each time. Again, it is highly dependant on individual circumstances. My wife holds a PhD in a field where technology advances rapidly and one's CV needs to be current to land the more interesting jobs. Looking forward (years) to the time where all three kids are in school she thinks she wants to have work options, possibly reduced hours, but to do so means probably returning to something full time in the next year or so to stay current. Even if we were to break even or lose a small amount of money on childcare and other work-associated costs over the next 5 or 6 years it may be worth it over the longer term. 

That said, I truly believe the financial aspect becomes secondary to the overall best choice for each individual family, if there is a choice available. I feel fortunate we're able to consider alternatives.


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