Can an employee deduct, from benefits received from a wage-loss replacement plan, contributions the employee made to that plan in previous years that were not deducted from income in any other year, where: the employer pays benefits directly to the employee under a wage loss replacement plan that is partially funded by the employer; or where the employee receives benefits from a trustee under a wage-loss replacement plan that is partially funded by the employer and where the employer controls certain terms and conditions and determines eligibility for benefits? The Directorate responded:
In general, contributions made to a plan described in subparagraphs 6(1)(f)(i) to (iii) by an employee may be deducted, where applicable, under subparagraph 6(1)(f)(v) from benefits received from the same plan. This is because the contributions, which can be deducted, are made by the employee before the end of the year and after 1967, or after a taxation year ending after 1971 in which an amount was taxed by virtue of paragraph 6(1)(f).
Where an employer pays benefits directly to an employee under a wage-loss replacement plan of which the employer funds a portion, or where an employee receives benefits from the same plan for which the employer funds a portion, controls certain terms and conditions, and determines eligibility for benefits, the wage-loss replacement benefits must be reported on a T4 information slip. …
[W]here a trustee or an insurance company pays benefits to an employee from a wage-loss replacement plan over which the employer does not exercise control, or where the employer does not determine eligibility for benefits, the trustee or insurance company is required to report the benefit amounts on a T4A information slip.