According to the document Notice of State Taxation Administration of The People's Republic of China on Deduction of Wages, Salaries and Employee Welfare Expenses (Guoshuihan [2009] No.3), "The employee welfare expenses stipulated in Article 40 of the Implementation Regulations include the following contents: ... (3) Other employee welfare expenses incurred in accordance with other regulations, including funeral subsidies, pension expenses, family allowance, family leave travel expenses, etc."

According to the above regulations, the compensation for work-related injuries paid in accordance with the national standards can be deducted before tax as employee welfare funds due to accidents. The enterprise shall provide the certification materials of relevant departments, such as those of labor security, insurance, court and other departments, as well as the payment voucher of compensation, the signature certificate of the employee's family after receiving the compensation, and go through the pre-tax deduction procedures.