The T4 slip and T5007 slip, Statement of Benefits

In the year that the workers' compensation claim is paid, the employee receives a T5007 slip from the workers' compensation board (WCB). The employee has to report the amount shown on the T5007 slip as income on his or her income tax and benefit return for that year and claim the corresponding deduction.

For the employee to claim the other employment expenses deduction on his or her income tax and benefit return, you have to fill out a T4 slip for the year in which you receive the reimbursement. Enter the amount of the reimbursed workers' compensation in the "Other information" area, under code 77. Code 77 can only be used in situations where the employee previously received salary, it was reported on their T4 slip, and part of the salary has now been reimbursed by the WCB.

This will allow the employee to deduct this amount against the previously paid salary. If the award is used only to offset loans and advances, do not report this amount on the employee's T4 slip.

Date modified:

2016-01-22