Wage Earner Protection Program for an employee: After receiving your WEPP payment

Income tax and tax information

A WEPP payment is taxable and a WEPP recipient will receive a T4A slip in the mail. All T4As are issued by the last day of February in the year following the payment. The T4A will be sent to the mailing address indicated on the WEPP application form.

If your mailing address has changed since receiving your payment, please notify Service Canada by calling 1-866-683-6516 (TTY: 1-800-926-9105).

If you have not received a T4A, if your slip is lost, destroyed or stolen, or if you require a duplicate slip, please call Service Canada at the number above to request a duplicate.

Statement of Crown Debt Repaid

In the event of an overpayment, the amount reported on T4A/Relevé 1 will not change.

When the debt is re-paid, a separate document called a Statement of Crown Debt Repaid will be issued.

Subrogation

After you receive a WEPP payment, the Government of Canada will take your place as a creditor in the bankruptcy/receivership proceedings for the amount paid under WEPP. This means that the Government of Canada has the right to recover amounts paid under WEPP from your former employer's estate or other third parties such as former directors of the company.

Mandatory reporting regarding wages recovery process

You must report the following to Service Canada:

• any amounts received for eligible wages after the WEPP payment has been issued, or
• any legal actions taken to recover eligible wages, including those taken by a third party such as a federal or provincial labour standards agency

To report payments received after receiving a WEPP payment, please complete the Employee declaration form and mail it to the WEPP Processing Centre:

WEPP Processing Centre
PO Box 5900
Cornwall ON K6H 6J6

You can also contact the WEPP information line at 1-866-683-6516 (TTY: 1-800-926-9105). The hours of operation are from 7:00 a.m. to 8:00 p.m. (Eastern Time), Monday to Friday.

If you have received Employment Insurance (EI) payments, or have submitted an EI application, please read the next section on EI reporting requirements.

Mandatory reporting regarding Employment Insurance (EI)

WEPP payments are considered earnings for Employment Insurance (EI) benefits calculations.

You must report your WEPP payment to EI services through:

• EI Telephone Reporting Service, or
• EI Internet Reporting Service

If necessary, EI agents will contact you for further information.

WEPP and EI interaction

In some instances, receipt of a WEPP payment can result in an EI overpayment. If you receive notice of an overpayment, it is important to immediately contact the EI office to notify the overpayment and to obtain information on how to pay back any amounts owed. Information on EI overpayment is also available at Employment Insurance (EI) and overpayments. Also, note that the interest on the amount owed will keep accruing until the entire overpayment has been remitted.

For more information on how a WEPP payment may affect your EI payments, please visit your local Service Canada Center, or call 1-800-277-9914.