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. 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, you have to complete a T4 slip for the year in which the reimbursement is received by the employer, and enter the amount of the reimbursed workers' compensation in the "Other information" area, under code 77. 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, you should not report this amount.