Information for employees on tax slips
If you have been regularly receiving your pay from Phoenix, rest assured that your 2016 tax slips will show your correct earnings and deductions.
Outstanding payments
If your case has not yet been resolved and you are owed money for 2016, your compensation advisor is working as quickly as possible to enter all outstanding payments in Phoenix prior to the end of this taxation year.
If we are unable to process your payment by the end of this year, the amount will be reported on your 2017 tax slips. This is in line with income tax regulations.
Overpayments
If you have been overpaid in 2016 and the overpayment was identified in Phoenix, the overpaid amount will not show on your 2016 tax slips, whether you have repaid the full amount or not.
Learn how to repay a salary overpayment.
Emergency salary advances or priority payments
If you have received one or multiple emergency salary advances or priority payments but your case has been resolved and you have started receiving your regular pay, your 2016 tax slips will not include these emergency payments, whether you have repaid the full amount owed or not. Of course, there are always exceptions, so please visit the Canada Revenue Agency website and review the questions and answers.
Repay salary overpayments
Are you an active or former public service employee being overpaid? Were you previously overpaid? Learn how you can begin the process of repaying salary overpayments today to minimize potential tax implications and financial hardship later.
Emergency salary advances and priority payments
These two types of payments are not considered salary overpayments. If you have received either type of advance, the money will be recovered only after you have started receiving your regular salary and received the full amount you are owed. The recovery period, in most but not all cases, will extend over the same length of time as you received your advances.
Who must repay
If you received a salary overpayment, you are required to repay these funds.
See below for repayment options and details on how to make a repayment arrangement if you are or were being paid by a department served by the Public Service Pay Centre in Miramichi.
If your department is not served by the Public Service Pay Centre, contact your compensation advisor about the repayment process.
When you must repay
The Pay Centre will begin recovering salary overpayments from you only after:
- you have been paid all salary and allowance payments you are owed
- you are receiving your regular salary
How to avoid potential tax implications
You can avoid potential income tax implications by ensuring a repayment arrangement is made before December 31, 2016.
How? Contact the call centre at 1‑855‑686‑4729 to make arrangements for the recovery of overpayments. If you are not receiving pay services from the Pay Centre, you can contact your department directly to make these arrangements.
If you don’t contact the call centre, the Pay Centre will mail you a letter with four options. You must indicate your chosen option and return the letter within six weeks of the letter’s date. If you do not respond to the letter, the Pay Centre will automatically choose option 1 of the repayment options listed below for you.
If you received an overpayment in 2016 but did not discover it until 2017, please see the CRA website for more information on tax implications and how to manage this situation.
Employees on leave without pay
If you’re on long-term leave without pay, you must contact the call centre at 1‑855‑686‑4729 to arrange repayment. You will not receive a letter.
Once you return to work, the Pay Centre will begin recovering money from you.
How to repay
Consult the repayment process for:
Active employees or employees on leave without pay
Refer to your pay cheque. The pay rate amount is your gross biweekly pay.
If the amount you are or were overpaid is:
- less than 10% of your gross biweekly pay, the Pay Centre will automatically recover the overpayment in one lump sum from your next regular pay
- 10% or more of your gross biweekly pay, consult the four options provided below
Repayment options
You can repay salary overpayments in one of four ways:
Option 1: Lump sum recovery through payroll deduction
The Pay Centre recovers the overpayment in one lump sum from your next regular pay.
Option 2: Lump sum recovery by cheque
You mail a cheque for the full amount to the Pay Centre. Learn more about mailing your repayment by cheque.
Option 3: Recovery in installments through payroll deduction
The Pay Centre recovers the overpayment over several pay cheques. You choose what percentage of your biweekly pay is deducted, although each installment must be at least 10% of the gross pay amount.
Option 4: Recovery in installments by post-dated cheques
You mail post-dated cheques to the Pay Centre. You choose what percentage of your biweekly pay you will pay, although each cheque must be for at least 10% of the gross pay amount. Learn more about mailing your repayment by cheque.
Former employees
If you have retired or been terminated from the Public Service, you must repay any overpayments you have received from the Pay Centre.
Repayment options
You can repay any overpayments in one of three ways:
Option 1: Lump sum recovery by cheque
You mail a cheque for the full amount to the Public Service Pay Centre. Learn more about mailing your repayment by cheque.
Option 2: Recovery in installments by post-dated cheques
You mail post-dated cheques to the Pay Centre. You choose what percentage of your monthly gross amount you will pay, although each cheque must be for at least 10% of that amount. Learn more about mailing your repayment by cheque.
Option 3: Deduction
This option is available if you are receiving a monthly public service pension. The Pension Centre recovers the overpayment over several monthly payments. You choose what percentage of your monthly payment is deducted, although each installment must be at least 10% of your gross monthly pension benefit. To arrange this option, contact the Pension Centre.
Mailing your repayment by cheque
If you choose to repay your overpayment in a lump sum with a cheque or with post-dated cheques, you must mail the following to the Pay Centre:
- a completed pay action request form (446-5)
- your cheque or post-dated cheques
In section 2 (work type) and section 3 (sub type) of the request form, select "recovery of overpayments" in both sections.
Make the cheque out to the Receiver General for Canada, and mail it along with the request form to:
- Organization:
- Public Service Pay Centre – Mail Facility
- Address:
-
PO Box 6500
Matane QC G4W 0H6
Overpayments not discovered until 2017
There will be tax implications if you received an overpayment in 2016 but did not discover it until 2017. See the CRA website for more details.
More information
- Questions and answers - Tax implications of Phoenix payroll issues – important information from the Canada Revenue Agency