The current process is that when a retiring allowance is paid, it is posted to a T4A slip in one of the following boxes:

• BOX 26 - Eligible Retiring Allowance
• BOX 27 - Non-Eligible Retiring Allowance.

Starting with the 2010 tax slips, retiring allowances will be reported in the "Other information" area on the T4 slip, under the following footnote codes:

• 66 Eligible Retiring Allowance
• 67 Non-Eligible Retiring Allowance

2.2.1 Manual Process

Effective January 1, 2011, if you are required to amend the reporting of retiring allowances paid in 2009 or earlier, use the newly designed T4A slip with the applicable new footnote codes 026 and/or 027. Effective January 1, 2011, if you are required to amend the reporting of retiring allowances paid in 2010 and beyond, use the T4 slip with the applicable

2.2.2 Death in Service

Taxation requirements stipulate that statements of remuneration must be issued immediately upon the employee's death. According to CRA, any retiring allowances paid in 2010 after the death of an employee are considered part of the death benefits. Death benefits will continue to be reported on the T4A slip. The T4A slip should be issued for funds paid to the estate or to the person entitled by law to share in the estate.

Please refer to Compensation Directive 2007-015 for additional information.

Until December 31, 2010, death benefits are to be reported in BOX 28 (Other income) of the T4A slip, and BOX 38 (Footnote codes) should indicate CODE 06 (Death benefits).

As of January 2011, based on the new T4A slip provided by the CRA, death benefits will remain on the T4A slip, but will be reported as footnote code 106 (Death benefits).