If you’ve been injured or become ill on the job
If we’ve paid you wage loss benefits we’re required by law to give you a T5007 statement for each tax year.
We’ll mail you a T5007 statement in January for the previous tax year. The statement shows the total amount of wage loss benefits we’ve paid you, minus any interest payments, up to and including December 31 of the tax year. You need to include this in your income tax return.
The Canada Revenue Agency (CRA) requires you to report your WSIB benefits as income, but you do not pay income tax on WSIB benefits. Your WSIB benefits may affect some tax credits that you claim.
To complete your income tax return:
- enter the amount from box 10 on your T5007 statement on lines 144 and 250 of your income tax form; and
- enter the amount from box 77 on your T4 slip on line 229 (other employment expenses) on your income tax form.
Understanding your statement
- The amount in box 10 on your T5007 statement is the total amount of all WSIB benefits paid in all claims in a tax year.
- Your T5007 statement includes benefits paid in all your claims, even though the statement only shows one claim number.
- The amount in box 77 on your T4 slip is the amount we’ve repaid your employer.
If you are not sure how to use your T5007 statement for your income tax return, call the CRA at 1-800-959-8281. You can also visit the CRA website.
If you think the amount on your T5007 statement isn’t right, call us at 1-800-387-0750 and ask to speak to the person responsible for T5007 statements. We’ll review it, and if it’s not right, we’ll send you a new T5007 statement.
If you’re an employer
If you employ someone who receives a T5007 statement from us because we paid them wage loss benefits, you also have responsibilities.
You can continue to pay your employee’s salary or wages while they are off work because of a work-related injury or illness. This payment is called an advance. If your employee is approved for wage replacement benefits, we'll reimburse you for the amount we would have paid your employee.
Employer advances report
In January, we’ll send you an employer advances report that tells you the amount we reimbursed you for each claim in the previous tax year. You need to make sure this repayment amount is included in box 77 (other information box) on your employee’s T4 slip.
If you think the amount reported on your employer advances report isn’t right, call us at 1-800-387-0750 and ask to speak to the person responsible for T5007 statements. We’ll review the amount, and if it’s not right, we’ll adjust it and send you a letter confirming the new advances amount to include in your employee’s T4 slip.
Reporting compensation reimbursement amounts
Here’s what you need to know about the way the Canada Revenue Agency (CRA) requires you report compensation reimbursement amounts on your employees’ T4 slips.
If you continue to pay an employee’s salary, before or after the WSIB has made a decision on a claim, you can’t make retroactive adjustments to income and deductions, either in the same year or any prior years. These payments are considered to be taxable income in the year that they are paid.
For example, if we reimburse the advances paid by an employer on January 10, 2004 for a period of lost time in 2003, the CRA considers the WSIB benefits to be part of the 2004 tax year since this is the year benefits were paid. Benefits would be included on the employee’s 2004 T5007 statement, the 2004 employer advances report and the 2004 T4 slip.
You can’t amend the prior year’s T4 slips or the current year’s T4 slips by the amount of your employee’s compensation benefits. You must enter the amount that was reimbursed to you, either by the WSIB or the employee, in box 77 (the ‘other Information’ box) of the T4 slip.
An advance or loan made to an employee that is equivalent to an employees’ compensation award is not treated as employment income and is not reported on a T4 slip. For more information, read our policy on compensation advances.