Workers Compensation Taxable Canada. Workers Compensation in Canada Each Canadian province and territory has its own exclusive Workers Compensation BoardCommission WCB - with the exception of the Northwest Territories and Nunavut who share a combined board. However if the amount of the claim is more than the loan that is the loan was 10000 and the claim was 11000 the excess of 1000 is not taxable.
Any payment that is more than the claim in this case 1000 is employment income in the year that the claim is paid and is reported on a T4 slip tax CPP and EI deductions are required. At line 25000 of your tax return take an offsetting deduction for the amount shown in box 10 of your T5007 slip. Your workers compensation benefits will be subtracted from your taxable income.
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Developed a mixed package of Workers Compensation Boards mandatory insurance and self-insurance. As such the thirteen regions have varying standards that govern the WCB legislation. Your workers compensation benefits will be subtracted from your taxable income. According to page 19 of Pub 525 under the heading workers comp Amounts you receive as workers compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers compensation act or a statute in the nature of a workers compensation act.
