WorkSafeBC-approved benefit claims paid by UBC are not taxable if you receive an advance of 68% of gross salary.
If you receive your full salary and WorkSafeBC reimburses UBC for your approved benefit claims, the amount UBC receives from WorkSafeBC is reported on Box 77 of your T4 slip. You will then have a tax deduction when you file your T1 income tax return for the benefit amount.
Workers: T5007 Statement of Benefits
The T5007 is an official income tax receipt and should be sent to the Canada Revenue Agency with your tax return.
Even if WorkSafeBC didn't pay you directly, they will send you a T5007. If WorkSafeBC make payments to a dependent spouse or child, they send a T5007 in that person's name.
The T5007 statement is mailed 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 14400, as part of your net income
- Line 25500, as a deduction
You will not pay any income tax on these benefits.
Full information on the Workers: T5007 Statement of Benefits is available on the WorkSafeBC website.