Box O – Death Benefit (Code: RK)
Include in box O of the RL-1 slip (see courtesy translation RL-1-T) the gross amount of a death benefit paid to a beneficiary in recognition of services rendered by a deceased employee. This amount may include unused sick-leave credits at the date of death. The beneficiary or beneficiaries of a death benefit will generally be entitled to a maximum exemption of $10,000 when filing their income tax return.
Any amount related to vacation days accumulated to the date of death is considered to be salary or wages and must be entered in box A of the RL-1 slip.
You must indicate the source of this income by entering code RK in the box marked “Code (case O)” of the RL-1 slip.
For more information on the codes to enter in the box marked “Code (case O),” consult RL-1 Slip – Box Marked “Code (case O)”.