Reporting EI benefits and Advanced Canada Worker’s Benefit payments
Pre-test question
That is correct
Individuals who received the ACWB payments will receive an RC210, Advanced Canada workers benefit (ACWB) statement. They must report these amounts on their tax return and keep a copy of the tax slip for their records.
Sorry, that is incorrect
Individuals who received the ACWB payments will receive an RC210, Advanced Canada workers benefit (ACWB) statement. They must report these amounts on their tax return and keep a copy of the tax slip for their records.
Instructions
- Open the tax software
- Review the Background information and Required slips (tax slips, receipts, etc.)
- Provide all required information for the appropriate sections of the tax software
- Once completed, compare your results with the solution provided
- Afterwards, refer to Key points of the tax software and the Takeaway points
Background information
Situation
Sandra worked at ABC Ltd. She lost her job during the year and applied for and started receiving employment insurance benefits. She also received ACWB payments.
| Categories | Datas |
|---|---|
| Name | Sandra Couture |
| Social insurance number (SIN) | 000 000 000 |
| Address | 123 Main Street City, Province X0X 0X0 |
| Date of birth | May 5, 1995 |
| Marital status | Single |
Required slips
T4 – Statement of Remuneration Paid (ABC Ltd.)
Text version of the above image
T4 – Statement of Remuneration Paid
Protected B
Employer’s name: ABC Ltd.
Employee’s name and address:
Last name: Couture
First name: Sandra
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 18,000.00
Box 16: Employee’s CPP contributions – see over: 761.25
Box 18: Employee’s EI premiums: 284.40
Box 20: RPP contributions: 1,000.00
Box 52: Pension adjustment: 1,800.00
Box 22: Income tax deducted: 700.00
Box 24: EI insurable earnings: 18,000.00
Box 26: CPP/QPP pensionable earnings: 18,000.00
Box 44: Union dues: 200.00
Box 45: Employer-offered dental benefits: 1
T4E – Statement of Employment Insurance and Other Benefits
Text version of the above image
T4E – Statement of Employment Insurance and Other Benefits
Protected B
Recipient’s name and address:
Couture, Sandra
123 Main Street
City, Province X0X 0X0
Box 14: Total benefits paid: 6,000.00
Box 15: Regular and other benefits paid: 6,000.00
Box 22: Income tax deducted: 900.00
Box 12: Social insurance number: 000 000 000
RC210 – Advanced Canada workers benefit (ACWB) statement
Text version of the above image
RC210 – Advanced Canada workers benefit (ACWB) statement
Issued by: Canada Revenue Agency
Couture, Sandra
123 Main Street
City, Province X0X 0X0
Social insurance number: 000 000 000
Box 10: Total Basic Advanced Canada workers benefit: 759.00
Review your results
Solution to Reporting EI benefits and advanced Canada workers benefit payments.
Key points of the tax software
Important note
To access complete instructions on the various steps of entering data into the software, click on the title of each section below.
Sandra's interview
- Click T4 and employment income in the left-side menu
- Click the + sign next to T4 income (earned in any province except Quebec) in the T4 and T4E section
- Enter the amounts from the T4 slip
Employment insurance and other benefits (T4E)
- Click T4 and employment income in the left-side menu
- Click the + sign next to T4E – Employment insurance and other benefits in the T4 and T4E section
- Enter the amount from the T4E slip
Advanced Canada workers benefit
- Click Other information slips in the left-side menu
- Click the + sign next to RC210 – Canada workers benefit advance payments statement [Federal line 41500] in the Information from other T-slips section
- Enter the information from the RC210 slip into the corresponding fields
Takeaway points
Employment insurance and other benefits
- Sandra’s employment insurance benefits amount is found in box 14 of the T4E slip and is reported on line 11900 of her tax return
Canada workers benefit and Advanced Canada workers benefit
- The tax software calculates the Canada workers benefit on Schedule 6 and reports the amount on line 45300 of the tax return
- Advanced Canada workers benefits (ACWB) are not taxable but must be entered on the tax return of the individual who received them
- Sandra’s ACWB payments are reported on line 41500 of her tax return