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English Version *** La version française suit ***

Instructions to Chapter 1 of the Efiler’s Manual on how to report the exempt portion of Employment Insurance and other benefits for Canadian Indians were revised as follows:

Employment insurance and other benefits

The amount of benefits received should be entered at Field 119. Enter at Field 119, the amount in box 14 (total benefits paid) of the T4E slip, minus any amount in box 18 (tax exempt benefits).

In the situation where box 18 is blank (no indication benefits are exempt), some agents are preparing the returns based upon the client's prior year information where benefits were exempt. The agent is transmitting "0" at line 119 and claiming the tax deducted from box 22 at line 437. We will process the return based on the T4E we have on record.

In order for the EI benefits to be treated as tax exempt, the client will have to contact HRSDC to obtain an amended T4E slip showing the exempt portion of the benefit in box 18. In the interim, you can send the return electronically with the total amount at line 119 and ask for a reassessment later or send a paper return with a note to indicate the benefits are exempt. Under no circumstances, should you be reducing the entry for line 119 unless the T4E slips shows an amount in box 18.

Thanks for your cooperation.