Income Tax Guide for the T5007 Information Return of Benefits

Transcription

1 Icome Tax Guide for the T5007 Iformatio Retur of Beefits A T115 Rev. 95 caada

2 A s part of Reveue Caada s ogoig efforts to reduce costs ad save paper, ad because the iformatio i this guide does ot chage o a regular basis, we Will o loger be publishig a aual versio of the lcome Tax Guide for the T5007 Iformatio Retur of Beefits. We Will publish a revised versio oly as required to caver ay ew iformatio, such as techical ad legislative chages. You cari cotact your local tax services office to determie the most recet date of publicatio. This guide uses plai laguage to explai the most commo related tax situatios. If you eed more help, please cotact your local tax services office. You cari fid the addresses ad telephoe umbers for Reveue Caada i the Govermet Caada sectio of your telephoe book. of Thik recyclig! Frayais au verso de cette publicatio Prited i Caada

3 Itroductio... What is the T5007 Iformatio Retum of Beefits?... Who has to file a T5007 Iformatio Retum of Beefits?... Beefits ad assistace you have to report..... Workers Compesatio beefits... Social assistace paymets... Beefits ad assistace you do ot have to report..... Workers Compesatio beefits... Social assistace paymets... Filig requiremets... Due date for filig... Filig o magetic media... Filig o paper... Pealties ad use of the social isurace umber (SIN)... Late-filig pealties... Failure to file a iformatio retur... Page Iterest o pealties... Waiver of pealty ad iterest... Failure to provide required iformatio or a SIN..... Use of the SIN... Notice of Assessmef... How to complete the T5007 Supplemetary slip..... Geeral iformatio... Distributio of the T5007 Supplemetary slips... How to complete the T5007 Summary form... Geeral iformatio... T5007 Supplemetary slips totals... Certificatio... Recovery of beefit ad assistace overpaymets... Workers Compesatio beefits... Social assistace paymets... Correctig, amedig, or replacig forms... Appedix 1 - Related publicatios... Page

4 ectios 232 ad 233 of the lcome Tax Regulatios require S every perso who pays a amout for Workers Compesatio beefits or social assistace paymets to file a iformatio retur to report those paymets. The iformatio retur you have to use is the T5007 Iformatio Retur of Beefits. It cosists of a T5007 Summary form ad a11 related T5007 Supplemetary slips. You cari use it to report icome from either source. This guide is desiged to help Workers Compesatio boards ad social services agecies determie: what types of beefits or assistace to report; ad whe ad where to file the T5007 Iformatio Retur of Beefits. This guide also provides iformatio about how to complete the T5007 Summary form ad the related T5007 Supplemetary slips. The T5007 Supplemetary slips make it easier for recipiets of these beefits or assistace to determie the amouts received durig the year. The icome show o the T5007 Supplemetary slip is ot taxable, but people who receive the beefits or assistace have to iclude these amouts i their et icome. They eed this iformatio if they wat to claim the guarateed icome supplemet, ad certai tax credits to which they may be etitled, such as the Child Tax Beefit, the goods ad services tax credit, some provicial tax credits, ad some o-refudable tax credits such as the age amout, the spousal amout, ad medical expeses. The T5007 Summary form The T5007 Summary form is a oe-part form you use to total a11 the amouts you are reportig o the T5007 Supplemetary slips. You do ot eed to sed us a paper copy of the T5007 Summary form if you file your iformatio retur o magetic media. T he followig agecies or bodies have to file a T5007 Iformatio Retur of Beefits: w ay provicial, territorial or muicipal agecy, or similar body that makes social assistace paymets o the basis of a meas, eeds, or icome test; ad ay provicial or territorial Workers Compesatio Board or similar body that pays a amout or determies a claim for compesatio uder a employees or workers compesatio law of Caada or a provice for ijury, disability, or death. Oly these orgaizatios should file T5007 iformatio returs. Employers who pay salary ad wages for ijury o duty leave, or advace paymets of compesatio pedig the decisio of a Workers Compesatio Board do ot have to file the T5007 iformatio retur. See the iformatio uder the headig Box 10 - Workers Compesatio beefits o page 7 for more iformatio. T he T5007 iformatio retur cosists of the T5007 Summary form ad the related T5007 Supplemetary slips. If you are filig your T5007 iformatio retur o magetic media, make sure that you read the filig requiremet iformatio i the sectio o Filig o magetic media o page 5. The T5007 Supplemetary slip Use the T5007 Supplemetary slips to idetify recipiets of Workers Compesatio beefits ad social assistace paymets, ad to report the amout of beefits ad assistace paid to them. If you file o paper, use the four-part T5007 Supplemetary slip. If you file o magetic media, use the two-part T5007 Supplemetary slip. aragraphs 56(l)(u) ad 56(l)(v) of the Icome Tax Act P describe social assistace paymets ad Workers Compesatio beefits that the recipiet has to iclude i icome. The followig list describes the most commo situatios whe you have to report Workers Compesatio beefits ad social assistace paymets. Although this list does ot iclude every situatio, it cari help you to determie what types of paymets you should report. Workers Compesatio Workers Compesatio Ijury beefits beefits iclude the followig: H Compesatio paid uder a employees or Workers Compesatio law of Caada or a provice for a ijury. These amouts iclude beefits that are a wage-loss replacemet for time lost from employmet due to a compesable ijury or coditio.

5 Disability m Compesatio paid uder a employees or Workers Compesatio law of Caada or a provice for a disability. These amouts iclude: - a wage-loss replacemet icome paid to a ijured worker who suffered a partial, total, temporary, or permaet disability as a result of a work-related accidet; - compesatio for future loss of earigs made to a ijured worker who suffers from a ijury resultig i permaet impairmet or temporary disability; ad - a award that is a lump-sum paid to a ijured worker who was disabled or disfigured as a result of a work accidet. Death Compesatio paid uder a employees or Workers Compesatio law of Caada or a provice as a result of death. These amouts iclude: - survivor beefits that are periodic paymets paid to a depedet spouse, depedet childre, or orphas; ad - compesatio that is a wage-loss replacemet icome periodically paid to a survivig spouse to replace the icome that the worker who was killed i a work-related accidet or who died as a result of a idustrial accidet would have eared. Social assistace paymets Social assistace icludes paymets made to beeficiaries or third parties o their behalf o the basis of a meas, eeds, or icome test ad icludes paymets for ormal food, clothig, ad shelter requiremets to: idividuals; impaired idividuals i ursig homes or similar accommodatios; ad elderly idividuals (over 6 years of age) whether or ot they live i ursig homes or similar accommodatios. These amouts cari also iclude actual retal or mortgage amouts paid for accommodatio. Workers Compesatio beefits Do ot report a paymet or a award for: medical expeses icurred by or o behalf of the employee; = fueral expeses for the employee; legal expeses for the employee; job traiig or cousellig of the employee; or H. the death of the employee, other tha periodic paymets made after the death of the employee. Note Do ot iclude i the beefit amout you report o the T5007 Supplemetary slip ay iterest you paid o retroactive Workers Compesatio awards. However, the recipiet has to iclude this iterest i icome at lie 121. You calculate the iterest o such a paymet from the date of etitlemet to the date the award is made. Social assistace paymets Do ot report a paymet: made i a particular year as part of a series of paymets totallig $500 or less i the taxatio year; that is ot part of a series of paymets; for medical expeses icurred by or o behalf of the payee; for Child tare expeses that iclude baby-sittig services, day ursery services, or services provided at a boardig school or camp, if the cost for these services would otherwise qualify for a deductio uder sectio 63 of the Icome Tux Act; for fueral expeses for a perso related to the payee; for legal expeses icurred by or o behalf of the payee or a perso related to the payee; or for job traiig or cousellig of the payee or a perso related to the payee. Note You do ot have to prepare a T5007 Supplemetary slip for social assistace paymets for amouts (ofte called bed reservatio fees) paid to idividuals to maitai their residece available for use by a foster perso. Due date for filig You have to file the T5007 Iformatio Retur of Beefits o or before the last day of February of the year followig the caledar year to which the iformatio retur applies. You have to sed the recipiet s copies of the Supplemetary slips to the recipiet s last kow address by the date the iformatio retur is due. You cari also deliver the copies by had by the due date. Filig o magetic media We ecourage you to file your T5007 Iformatio Retur of Beefits o magetic media (tape, cartridge, or diskette). Sed a11 iformatio returs filed o magetic media to: Magetic Media Processig Uit Ottawa Tax Cetre 875 Hero Road Ottawa ON KlA la2

6 If you are participatig i the magetic media filig program for the first time, you have to submit a test tape, cartridge, or diskette for the Departmet s approval. You should sed the test tape, cartridge, or diskette at least two moths before the filig deadlie. If you get approval to file o magetic media, you have to sed the T5007 tapes, cartridges, or diskettes to Reveue Caada before the filig deadlie. However, you do ot have to submit the Departmet s paper copy of the T5007 Supplemetary slips, or the T5007 Summary form. Refer lo our booklet T029, Computer specificatios for data fil& o magetic media - SAFER TACOASJ TACP) TU T5007, for the techical iformatio you Will eed. If you would like to fid out more about this method of filig, please Write to the Magetic Media Processig Uit at the Ottawa Tax Cetre address listed o page 5, or telephoe (toll free) l Filig o paper You have to file a completed T5007 Summary form with copy 1 of the related T5007 Supplemetary slips o or before the last day of February followig the caledar year to which the iformatio retur applies. Sed the completed T5007 Iformatio Retur of Beefits to the office for your area. See the addresses listed o the back of the T5007 Summary form. Late-filig pealties There is a pealty for ot filig a T5007 Iformatio Retur of Beefits by the required date. The pealty is $25 a day, with a miimum pealty of $100, to a maximum of $2,500 for each failure to file. This pealty Will also apply if you fail to provide copies 2 ad 3 of the T5007 Supplemetary slips to the perso to whom the iformatio relates. Failure to file a iformatio retur A perso who does ot file a T5007 Iformatio Retur of Beefits as required uder the Icome Tax Regulatios may be guilty of a offece. O summary covictio, that perso is liable to a fie ragig from a miimum of $1,000 to a maximum of $25,000, or to a fie ad imprisomet for a term of up to 12 moths. This fie is i additio to ay other pealty. Iterest o pealties We charge iterest, compouded daily, at the prescribed rate o the total amout of pealties assessed. Both iterest ad pealties are payable to the Receiver Geeral. Waiver of pealty ad iterest We may cacel, reduce, or waive a11 or a portio of the late-filig pealty ad ay iterest if you file late because of circumstaces beyod your cotrol. If this happes, iclude a letter of explaatio with your iformatio retur. For more iformatio, see Iformatio Circular 92-2, Guidelies for the Cacellatio ad Waiver of Iferest ad Pealties. Failure to provide required iformatio or a SIN Pealties for failig to provide iformatio o a iformatio retur, icludig the SIN, apply to the filer. A pealty for failure to provide the SIN to a perso required to make a iformatio retur also applies to the idividual. Filer - You have to get the SINs of idividuals for whom you are preparig iformatio slips. If you do ot get the SIN, you should at least be able to prove that you have made a reasoable effort to get it. You should: - advise (preferably i writig) existig cliets who have ot yet give their SINs to you that they have to do SO; - advise them of the pealty for failig to provide their %Ns; ad - ask ew cliets to give their SINs wheever you believe that they Will be paid beefits or assistace that Will require you to prepare a iformatio slip for them. Idividuals - Idividuals residet i Caada have to give their SINs upo request to ay perso who has to prepare a iformatio slip for them. If the idividual does ot have a SIN, he or she has to apply for oe at ay Caada Employmet Cetre withi 15 days of the request. Whe the idividual receives the SIN, he or she the has 15 days to give the SIN to the perso preparig the iformatio slip. A pealty of $100 for each failure to provide required iformatio applies to both parties if they do ot meet these requiremets. The pealty does ot apply if a idividual has applied for a SIN, but has ot received it whe the iformatio retur has to be filed. For more iformatio about SIN reportig requiremets ad the pealties thal may apply, see Iformatio Circular 82-2, Social Isurace Number Legislatio thaf Relates to tke Preparatio of Iformatio Slips. Use of the SIN Ay perso who has to make a iformatio retur caot kowigly use, commuicate, or allow a idividual s SIN to be commuicated for a purpose other tha that for which the idividual provided it, or as required or authorized by law. Iformatio retur preparers as well as their employees, officers, or agets who use a idividual s SIN for uauthorized purposes are guilty of a offece ad are liable to a fie, or to imprisomet, or bath. Nofice of Assessmet We Will issue a Notice of Assessmet oly if a pealty applies. 6

7 Geeral iformatio Before you complete the T5007 Supplemetary slips, please read the istructios uder Filig o paper o page 6 ad Filig o magetic media o page 5. We cari process your T5007 iformatio retur more efficietly if you follow these istructios. Please do ot mark, type, or prit i the area etitled For departmetal use o the T5007 Supplemetary slip. You cari use ball-poit pe, medium lead pecil, or typig or machie pritig to complete the slips. Do ot tut or separate ay of the three Supplemetary slips o copy 1 of the T5007 Supplemetary slip; you have to submit the etire page. Year Eter the last two digits of the caledar year i which the beefits or assistace were paid to the recipiet. I the case of a claim of Workers Compesatio beefits awarded by the court, eter the last two digits of the year to wbich the amout of the award pertais. You have to eter the year o each T5007 Supplemetary slip. Box 10 - Workers Compesatio There are three methods of paymet: direct paymet to a claimat; beefits full-salaried employee award, whe the Workers Compesatio Board repays the awarded amout to the employer who has advaced the moey to the employee i aticipatio of the award; ad self-isured employee award, whe the Workers Compesatio Board determies the eligibility of the claim ad the amout of the award, but full resposibility for paymet rests with the employer, or with a isurace compay. Direct paymet to claimat - Eter i box 10 the total amout (dollars ad cets) of Workers Compesatio beefits paid to the recipiet i the year. Full-salaried employee award ad self-isured employee award - Eter i box 10 the total amout (dollars ad cets) of the Workers Compesatio award relatig to the caledar year. Examole 1 Whe the claim ad beefit paymets occur i differet caledar years - A employee gets ijured ad files a claim i year A. The Board accepts the claim i year A, ad reimburses the employer or determies the claim i the followig year B. I this case, the Board has to file a T5007 Supplemetary slip for year A for the portio of the award relevat to that year. The Board has to issue aother T5007 Supplemetary slip for year B for the portio of the award relevat to year B. Example 2 Whe a isurace compay pays the immediate beefits - A worker gets ijured or sick ad files a claim. The isurace compay pays $500 to the worker, ad the worker assigs his or her Workers Compesatio Board (WCB) rights to the isurace compay. The Board awards $00 to the worker ad pays that aîoüt to the isurace compay. The isurace compay issues a TA Supplemetary slip to the worker for $100, which is the amout of urecovered beefit paymets to the worker. The Board should issue a T5007 Supplemetary slip to the worker for the full$00 beefit awarded. Note Self-isured employers cotiue to pay full salary ad wages to their e,mployees who have filed a claim with the Workers Compesatio Board, util the board determies the claim. If these amouts are take from the employee s accumulated sick leave credits, whe the extet of the leave take from sick leave credits is decided, the employer has to reistate the sick leave credits used. Ay excess amout (called a top up) paid to the employee is taxable as salary ad wages. For iformatio o the preparatio of T slips to report salary ad wages, refer to the Employers Guide fo Puyroll Deducfios - Basic Iformatio. Iterim assistace from a social services agecy Idividuals could face fiacial difficulties while waitig for the Workers Compesatio Board to accept their claim. Durig this waitig period, these idividuals may rely o a social services agecy for fiacial support. I this case, they might be required to assig their rights to icome receivable from the Workers Compesatio Board to a social services agecy i exchage for iterim fiacial support. The assigmet could caver the etire amout of icome or part of it. Assigmet of beefits - The amout the Workers Compesatio Board has to report i box 10 is the total Workers Compesatio beefits paid i the caledar year. I additio, the social services agecy has to issue a T5007 Supplemetary slip for the amout of social assistace paid, less the Workers Compesatio beefits assiged to the agecy. Box 11 - Social assistace paymets provicial supplemet Eter the total amout (dollars ad cets) of assistace paid i the caledar year to the recipiet. Whe there is a legal trasfer (subrogatio) of certai icome amouts - I certai circumstaces, a idividual cari formally assig his or her rights to receive certai icome, or a provice cari, by legislatio, trasfer the rights of the idividual to receive such icome (e.g. Child support ad alimoy paymets). I this case, the icome loses its idetity whe the rights to receive it have bee trasferred. I this case, report i box 11 the total social assistace paymets paid to the recipiet i a caledar year, or 7

8 regardless of the moey recovered by meas of forma1 assigmet or trasfer. Whe certai icome amouts are assiged to repay assistace - Idividuals could face fiacial difficulties while waitig for certai icome amouts (e.g. Workers Compesatio beefits, uemploymet isurace beefits, ad Caada Pesio Pla paymets). Durig this waitig period, these idividuals may rely o a social services agecy for fiacial support. I such a situatio, they could sig a agreemet to repay ay assistace they receive. I this agreemet, they could assig their rights to a11 or part of ay icome amouts to the social services agecy. I this case, you have to issue a T5007 Supplemetary slip for the amout of social assistace advaced to the idividual less ay amouts recovered by assigmets. The icome that is received from the other agecies i repaymet for the social assistace advaces keeps its idetity, ad those agecies Will issue the applicable iformatio slip to the idividual o whose behalf those paymets were made. Box 12 - Social isurace umber Eter the idividual s social isurace umber (SIN). You have to get the SIN from each recipiet. If the idividual does ot have a SIN, he or she has to apply for oe. If you did ot get the SIN by the time you prepare the T5007 Supplemetary slip, do ot delay completig the T5007 Iformatio Retur of Beefits beyod the required filig date. I this case, you cari leave this box blak. If a idividual gives you his or her SIN after you have set the T5007 iformatio retur to us, you do ot have to amed his or her T5007 Supplemetary slip. For more iformatio about social isurace umber reportig requiremets ad the related pealties, see Iformatio Circular 82-2, Social Isurace Number Legislatio that Relates to the Preparatio of Iformatio Slips. You cari get this circular from ay tax services office. Box 13 - Report code Eter o each Supplemetary slip oe of the followig codes to idicate whether the slip is: m 0 Origial; or 1 Ameded (chagig the fiacial data or idetificatio iformatio), or cacelled. Whe usig code 1, eter a descriptio at the top of the Supplemetary slip (Le. ameded or cacelled) ad iclude a writte explaatio of the reaso for filig the slip whe you submit the T5007 Supplemetary slips to us. For more details, see the sectio called Correctig, amedig, or replacig forms o page 10. Void Eter X i the void box if you make a error o a Supplemetary slip. We Will disregard voided T5007 Supplemetary slips durig processig. Recipiet s ame ad address Eter the surame of the idividual first, i capital letters, followed by the give ame ad iitials. Eter the recipiet s full mailig address i a11 cases. Payer s ame ad address Eter o each T5007 Supplemetary slip, the complete ame ad address of the Workers Compesatio Board, the social services agecy, or similar body that paid the beefits or assistace, or determied a award to the recipiet. Distributio of the T5007 Supplemetary slips If you file paper copies, distribute the four copies of the T5007 Supplemetary slip as follows: COPY 1 Copies 2ad3 COPY Sed this copy with the T5007 Summary form to the applicable office listed o the back of the T5007 Summary form. Sed these copies to the recipiet s last kow address, or deliver by had. Keep this copy for your records. If you file by magetic media, distribute copies 2 ad 3 as idicated above. Geeral iformatio Before you complete the T5007 Summary form, please read the istructios uder Filig o paper o page 6 ad Filig o magetic media o page 5. We cari process your T5007 iformatio retur more efficietly if you follow these istructios. At the ed of the caledar year, you may receive a pre-prited T5007 Summary form from our office. This Summary form cotais pre-prited idetificatio iformatio relevat to your office. The pre-prited idetificatio iformatio correspods to the data we curretly have i our file. Use this pre-prited Summary form whe you file your T5007 Iformatio Retur of Beefits. Please verify the pre-prited iformatio o the form ad make ay chages followig the steps below. If you did ot receive a pre-prited T5007 Summary form, you cari get a blak copy at ay of our tax services offices. Mease do ot mark, type, or prit i the areas etitled For departmetal use o the Summary form. If you submit your T5007 iformatio retur o magetic media If you submit your T5007 Iformatio Retur of Beefits o magetic media, you do ot eed to sed us a 8

9 T5007 Summary form. However, you should keep your pre-prited Summary form ad use it if you file a ameded or additioal T5007 iformatio retur. Iformatio retum for the year edig December 3 1 Eter the last two digits of the caledar year covered by this iformatio retur, if ot already pre-prited. Filer idetificatio umber Pre-prited Summary form - Your filer idetificatio umber is already pre-prited i the relevat space o the form. It idetifies your office as beig a filer of the T5007 Iformatio Retur of Beefits. You have to quote your filer idetificatio umber i ay correspodece you have with us. Blak Summary fdrm - Eter your ew filer idetificatio umber. If your office does ot have a filer idetificatio umber, leave this area blak. If this is a.ameded T5007 Summary form Eter a X to idicate if you are filig a ameded T5007 iformatio retur. Box 31 - Total umber of T5007 Supplemetary slips attached Eter the total umber of T5007 Supplemetary are submittig with this Summary form. Perso to cotact for more iformatio slips you Prit the ame (i capital letters) ad telephoe umber of the perso who Will be able to aswer ay questios we may have about this iformatio retur. Certificatio Name of authorized officer Prit the ame (i capital letters) of the officer who has sigig authority. Positio or title Eter the positio or title of the officer who has sigig authority. Sigature of authorized officer ad date Make sure that the perso who has sigig authority sigs ad dates the iformatio retur. If this is a additioal T5007 Summary form Eter a X to idicate if you are filig aadditioal T5007 iformatio retur. Name ad full address of payer Pre-prited Summary form - The ame ad address of your office is already pre-prited i this area. This preprited iformatio correspods to the data we curretly have o our file. Verify the pre-prited ame ad address, ad make ay ecessary chages i the area provided. Blak Summary form - Eter the ame ad complete address of the Workers Compesatio Board, social services agecy, or similar body filig this iformatio retur. Laguage Eter a X to idicate your preferred laguage for correspodece. T5007 Supplemetary slips totals Box 10 - Workers Compesatio beefits Eter the total amout (dollars ad cets) of Workers Compesatio beefits paid or awards determied. This amout correspods to the total of a11 amouts reported i box 10 of a11 the T5007 Supplemetary slips you are submittig with this Summary form. Box 11 - Social assistace paymets provicial supplemet Eter the total amout (dollars ad cets) of social assistace paymets or provicial supplemet paid. This amout correspods to the total of a11 amouts reported i box 11 of a11 the T5007 Supplemetary slips you are submittig with this Summary form. or T he followig guidelies address recoveries of overpaymets of beefits or assistace made by mistake to a idividual. A amout paid i error is ot cosidered as assistace or a beefit for the idividual receivig it. Therefore, it is ot icluded i the idividual s icome for the year of receipt. If the idividual is required to repay it i the same or aother year, o deductio from icome is allowable for the repaymets made (whether made by deductio from the idividual s beefits or assistace, or i some other marier). The followig guidelies apply if the idividual has repaid amouts you l-rave reported o a prior year s T5007 Supplemetary slip. Note A T5007 Supplemetary egative amout. slip should ever show a Workers Compesatio beefits Self-isured employee award You should issue a ameded T5007 Supplemetary slip for the year the overpaymet was paid, ot the year the board discovered or recovered the overpaymet. Example A worker receives i year A a total of $1,000 i wages cosistig of $600 of beefits ad $00 of salary. I the followig year B, the board discovers that the worker should have received oly $550 i beefits ad $50 i salary for year A. Cosequetly, year A beefits were overpaid by $50. You should reflect this chage by issuig 9

10 a ameded T5007 Supplemetary amout of $550. slip for year A i the For purposes of calculatig the refudable tax credits of the idividual (eg. goods ad services tax credit, Child Tax Beefit, ad the provicial tax credits), the et icome of the idividual stays at $1,000. The icrease i salary is offset by the $50 reductio i beefits. However, you have to amed the T5007 Supplemetary slip because there is a icrease i the taxable icome of the idividual, equivalet to the icrease i salary of $50. The employer should also amed the T Supplemetary slip to $50. For advice o this situatio, refer to the Employers Guide fo Payroll Deducfios - Basic Iformatio or cotact the Reveue Collectios sectio at your tax services office. Direct paymet to claimat Example 1 Usig the previous example i which the idividual oly received beefits i year A, you should amed the T5007 Supplemetary slip of year A to report $550 i paid beefits. Example 2 Whe a idividual is still receivig beefits i year B, ad bis or her beefits for that year are reduced i order to recover the overpaymet, or if he or she directly repays the overpaymet, you should oly report the et amout o the T5007 Supplemetary slip for year B. Oce year B s beefits have bee reduced to il, you cari reduce year A s beefits by ay amout of the recovery that exceeds year B s beefits. I this case, you should also prepare a ameded T5007 Supplemetary slip for year A. Whe a idetified overpaymet has ot bee recovered, there is o eed to amed ay T5007 Supplemetary slips. Social assistace paymets Example 1 I year A, a idividual receives $3,000 of assistace. I the followig year B, it is discovered that the idividual should have received oly $2,500 i total paymets. The idividual is ot receivig assistace i year B, but the agecy recovers the overpaymet of $500 of assistace i year B. I this case, you should amed the T5007 Supplemetary slip of year A to report $2,500 of paid assistace. Example 2 Whe a idividual is still receivig assistace i year B, ad bis or her assistace paymets for that year are reduced i order to recover the overpaymet, or he or she directly repays the overpaymet, you should oly report the et amout o the T5007 Supplemetary slip of year B. Oce year B s assistace has bee reduced to il, you cari reduce year A s assistace by ay amout of recovery that exceeds year B s assistace. I this case, you should also prepare a ameded T5007 Supplemetary slip for year A. Whe a idetified overpaymet has ot bee recovered, there is o eed to amed ay T5007 Supplemetary slips. T5007 Supplemetary slip If, after you file your T5007 Iformatio Retur of Beefits, you discover that you have made a error i preparig your iformatio retur, sed us a coverig letter explaiig the error, alog with the ecessary Supplemetary slips, as detailed below. If you failed to iclude a11 the required T5007 Supplemetary slips, file the additioal slips. Eter 0 i box 13, Report Code. If you have to chage fiacial data o a T5007 Supplemetary slip previously filed, file a ameded T5007 Supplemetary slip showig a11 the same data as o the origial slip, except for the box you are chagig. Prit the word ameded at the top of the T5007 Supplemetary slip ad eter 1 i box 13, Report code. We do ot require a ameded T5007 Supplemetary slip if a recipiet provides a SIN after you have set the iformatio retur, or if you have to chage o-fiacial data ad the SIN is correct. If you issued a T5007 Supplemetary slip i error ad wish to cacel it, file aother exactly the same as the origial. This icludes slips with icorrect SINs. Prit the word cacelled at the top of the T5007 Supplemetary slip ad eter 1 i box 13, Report code. If you issue a T5007 Supplemetary slip to replace oe lost by the recipiet, please do ot sed us a copy. Prit the word duplicate at the top of the T5007 Supplemetary slip ad sed copies 2 ad 3 to the recipiet. You have to file ameded T5007 Supplemetary slips as a separate iformatio retur. Do ot iclude origial T5007 Supplemetary slips (report code 0) with a ameded T5007 Summary form. You have to file ameded iformatio returs o paper eve if you filed your origial iformatio retur o magetic media. T5007 Summary form If you have cacelled or revised fiacial data o previously filed T5007 Supplemetary slips, you have to sed us a ameded T5007 Summary form showig the total of a11 ameded T5007 Supplemetary slips. Iclude a11 T5007 Supplemetary slips with report code 1. Do ot iclude origial T5007 Supplemetary slips (report code 0) with a ameded T5007 Summary form. If you file additioal T5007 Supplemetary slips, you have to sed us a additioal T5007 Summary form showig the total of a11 additioal T5007 Supplemetary slips. Iclude oly origial T5007 Supplemetary slips with report code 0. 10

11 T he curret versio of the followig publicatios may be helpful. You cari get them from ay tax services office. Guide T001 Employers Guide to Payroll Deductios - Basic Iformatio Iterpretatio bulletis IT-202 Employees or Workers Compesatio IT-28 Wage LO~S Replacemet Plas Iformatio circulars 82-2 Social Isurace Number Legislatio that Relates to the Preparatio of Iformatio Slips 92-2 Guidelies for the Cacellatio ad Waiver of Iterest ad Pealties , T2 ad T3 Custom Returs Your opiio couts! We review our icome tax guides ad pamphlets each year. If you have ay commets or suggestios to help us improve our publicatios, we d like to hear from you! Please sed your commets to: Cliet Services Directorate 00 Cumberlad Street Ottawa ON KlA OL8 11