Death Benefit

[vickyp]

#79888

Hello,
One of our employees passed away last year. As we’re processing yearly bonuses for 2021, we’d like to provide the employee’s bonus amount as a death benefit.
I wanted to confirm that there’s no issue in doing so and an ROE will need to be re-issued again once the payment is made? We’re in BC.
Thank you,
Zsofia

[vickyp]

#79889

From our payroll expert, Alan McEwan.
Yes, there is no reason that the employer might wish to pay a death benefit in these circumstances.
Note, however, that no ROE reporting is required. There is nothing in the regulations or guides that would require reporting a “death benefit” on an ROE.
Remember that a “death benefit” is issued in the name of the recipient, i.e. not the employee’s estate, on a T4A.

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