T4 Code 77 — Workers' compensation benefits repaid to the employer
WCB top-up you repaid to your employer — creates an offsetting deduction at Line 22900.
At a glance — Code 77
- Box name
- Workers' compensation benefits repaid to the employer
- T1 line
- Line 22900 — Other employment expenses
- Check against
- Repayments you made to your employer when WCB benefits were received after employer-paid top-up.
What Code 77 means
Code 77 is used when your employer paid you full salary while a WCB claim was pending, then required you to repay the employer once WCB benefits came through. The repayment is deductible.
The mechanics: you receive salary (in Box 14) while off work, WCB pays you directly, you repay the employer for the period they covered. Code 77 documents the repayment.
The repayment is claimed as a deduction on Line 22900 (Other employment expenses). No T2200 required because it is a direct repayment of employment income, not an expense.
Tax return implications
- Line 22900 — reduces taxable employment income.
- Do not confuse with Line 25000 (WCB received directly — a deduction for the exempt WCB amount from your total income).
Related T4 boxes
Code 66 — Eligible retiring allowance
Severance eligible for transfer to an RRSP without RRSP room — limited to $2,000 per year of pre-1996 service.
Code 67 — Non-eligible retiring allowance
Severance portion not eligible for direct RRSP transfer — fully taxable, but may still use regular RRSP room.
Code 71 — Indian (exempt income) — employment
Employment income exempt from tax under §87 of the Indian Act — reported for information only, not added to taxable income.
Box 14 — Employment income
Your total gross employment income for the year before any deductions — salary, wages, bonuses, commissions, taxable benefits and most other pay.
Filing your return? Use the payroll deductions calculator to verify the amounts on your T4 match expected CPP, EI and income tax withholdings, and the income tax calculator to estimate your refund or balance owing.
Sources
T4 box definitions from CRA T4 employer guide. Rates and thresholds current for 2025; file your 2025 T1 by April 30, 2026 (self-employed June 15).