Advances or loans

Advances or loans made to an employee that are equivalent to an anticipated workers' compensation award will not be treated as employment income.

As a result, you do not have to deduct CPP contributions, EI premiums, and income tax on this amount. It is not reported on a T4 slip at year-end. We do not consider any interest that accumulates on advances or loans while waiting for a claim decision as a taxable benefit.