Your annual CRA tax statement
If you're a worker, any WorkSafeBC income benefits you receive are non taxable. But they might affect your tax credits and payments. So we provide a T5007 Statement of Benefits to help you file your annual tax return. If you're an employer, you will need to adjust T4s covering any wages that you paid and we reimbursed.
Workers: T5007 Statement of Benefits
The T5007 is an official income tax receipt. You send it to Canada Revenue Agency with your tax return.
Even if we didn't pay you directly, we will send you a T5007. If we make payments to a trustee, we'll issue a T5007 in your name in care of the trustee. If we make payments to a dependent spouse or child, we send a T5007 in that person's name.
We mail the T5007 statement in January each year. The amount it shows in Box 10 Worker's Compensation Benefits goes in two places on your income tax return:
- Line 144, as part of your net income
- Line 250, as a deduction
You will not pay any income tax on these benefits.
Payments included on a T5007
Your T5007 shows the total compensation benefits we paid on your claim in the calendar year. These benefits include compensation for lost wages, disability payments, and survivor benefits.
If you received a lump-sum annuity payout, we include that amount too.
Payments not included on a T5007
The T5007 for the year shows all amounts paid by December 31. So if you receive a payment dated January 2, 2016 for the previous two weeks, it doesn't appear on your 2015 statement. You weren't paid by year-end. The amount appears on your 2016 statement instead.
Some benefits you received are not included on the statement. That's because they count as expenses rather than replacement for lost income. Examples include:
- Interest payments
- Vocational rehabilitation training expenses
- Medical expenses
- Funeral expenses
Finding your T5007 online
If you have an online services account, your T5007 statement can be found in the View Claims section after it is issued in January. You can reprint your statement if it gets misplaced.
If your employer continued to pay you
Sometimes employers pay your wages while you are receiving compensation. We then reimburse your employer. You will still receive a T5007. You will also get a T4 slip from your employer. Your employer handles how your employment income and the benefit payments appear on your T4 slip.
There are two possible ways for your employer to record your total employment income on your T4 slip. The choice made reflects your employment arrangement:
- Your T4 records your total employment income as gross wages. In this case, you get an extra deduction. It's for the tax-free amount we paid to your employer on your claim. The amount should appear in Box 77 on your T4 slip. It goes on line 229 of your tax return.
- Your T4 does not include as part of your employment income the tax-free amount we paid out on your claim. In this case, you get no extra deduction. Box 77 on your T4 slip should be blank.
Have questions about your T5007 Statement of Benefits? We're happy to help. Please contact our Claims Call Centre team.
Employers: Preparing T4 slips
How an injured worker received WorkSafeBC benefits will affect your reporting of the worker's income on a T4 slip.
We paid the worker directly
You’re not required to record anything about the claim income on the worker's T4. We'll issue a T5007 Statement of Benefits to the worker. The worker will then send it to Canada Revenue Agency as part of his or her tax filing.
You paid the worker, and we reimbursed you
How you paid the worker determines how you fill out the T4 slip. You must follow Canada Revenue Agency rules. For assistance, contact the agency and your accountant. Common arrangements for paying injured workers include:
- Continuing salary or wage
- Advancing or loaning money, which is later repaid
- Advancing or loaning money, which is not repaid
- Top-up amounts
Payee 2 reports
If you paid the injured worker and received reimbursement from us, you'll get a Payee 2 report. It shows the amount we paid to you for the worker's wage loss. You can use this while preparing T4s.
Sometimes the amount showing on your Payee 2 report will not agree with your records. The difference could be due to:
- The time elapsed between when we issued the cheque and when you deposited it
- Your cheque having been not cashed, or not received
If a cheque has been lost or stale-dated, we can issue you a replacement cheque.
Claims cost statements
Do not use your claims cost statement to put together T4s. This statement shows all claim costs, including medical and other costs for injured workers. It does not translate directly into T4 information.
If you have questions about your Payee 2 report, please contact our Claims team.