I looked up the information about my short-term disability. It was a salary continuance plan administered by my company’s payroll so I continued to receive my salary for 6 month.
Then they sent me a T4 at the end of the year. It looked like this:
box 14 - employment income - $1
box 22 - income tax deducted - $1
box 16 - employee’s CPP contributions - $1
box 24 - EI insurable earnings - $1
box 26 - CPP/QPP pensionable earnings - $1
box 18 - empoyee’s EI premiums - $1
box 52 - pension adjustment - $1
On my tax return it looked like this:
line 101 - employment income - $1
line 206 - pension adjustment - $1
line 427 - total income tax deducted - $1
line 448 - CPP overpayment - $1
and so on
So this is how my short-term disability looked like when I submitted it to CRA. It was classified as an employment income on both T4 form and a tax return.
According to David’s article there are different types of short-term disability:
Different benefits must be taxed differently. My short-term disability was treated as an employment income.