ARCHIVED CD 2010-016
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September 29, 2010
SUBJECT: Modifications to the Regional Pay System -- Entitlement Codes for Commuting Assistance
1.1 The purpose of this directive is to provide information on the modifications to the Regional Pay System (RPS) to ensure correct use of the commuting assistance allowance, as authorized by the National Joint Council (NJC) Commuting Assistance Directive.
2.1 Based on a review conducted by the Treasury Board Secretariat (TBS) in 2009, it was determined that the following entitlement codes were not being used correctly: 035 Expenses - Commuting 130 Commuting Allowance 142 Commuting Allowance
2.2 A new entitlement code, 1F4 (Commuting Assistance), will be created to replace the current entitlement codes 035, 130 and 142. This will eliminate confusion and ensure that the commuting assistance allowance is applied in accordance with the NJC Commuting Assistance Directive, the federal Income Tax Act (ITC) and the Quebec Taxation Act.
3.1 The purpose of the commuting assistance is to help defray excessive costs incurred in employees' daily travel to and from their regular assigned remote worksite as per Appendix B of the NJC Commuting Assistance Directive, when required by management. The commuting assistance may be either employer provided or by use of a private motor vehicle.
3.2 The rate of commuting assistance shall be at the rate prescribed in Appendix A of the NJC directive.
3.3 The commuting assistance is subject to the following mandatory deductions to be withheld at source: Federal/provincial income tax Employment insurance (EI) Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) Quebec Parental Insurance Plan (QPIP)
The payment is not subject to the Disability Insurance (DI) Plan, the Long-term Disability Insurance (LTD) Plan, the Supplementary Death Benefit (SDB) Plan, the Public Service Management Insurance Plan (PSMIP) and the public service pension plan deductions.
3.4 Acting Assignments For an acting assignment at one of the qualified worksites as per the Appendix B of the NJC Directive, employees are entitled to receive the commuting assistance.
3.5 This payment is not considered part of salary for pay purposes. As a result, entitlements related to pay situations (such as promotions or acting pay) will not be recalculated.
This payment is not to be used in calculating the 4% gratuity, or other entitlements such as premium pay in lieu of statutory holidays.
This entitlement is not subject to the 10 working days per month eligibility rule.
4.1 Effective September 30, 2010, entitlement code 1F4 Commuting Assistance shall be used to reimburse employees for commuting assistance, at the rate and amount as prescribed in the NJC Commuting Assistance Directive.
4.2 Compensation advisors are responsible for manually processing the payments as a lump sum amount (rate base '0').
5. Pay Office Responsibilities
5.1 There are no new responsibilities to be assigned to the pay offices (PO s) as a result of this directive. Current PO procedures remain in effect.
6.1 The PPIM will be updated to incorporate the relevant information contained in this compensation directive.
7.1 Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.
Original Signed by
Carrie E. Roussin
Carrie E. Roussin
Accounting, Banking and Compensation
Reference(s): CJA 9010-3, ENT's 1F4, 035, 130 and 142.
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