CD 2012-007

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Subject: Elimination of the Parking Benefit for Certain Management Category Employees

June 5, 2012

1. Purpose

1.1. The purpose of this directive is to inform compensation advisors of the Treasury Board Secretariat’s (TBS) decision to eliminate the parking benefits for management category employees in the following Bargaining Unit Designators (BUD) Groups:

  • EX-01 to EX-05 (BUD 10200)
  • DS-7A, DS-7B, DS-8 (BUD 22900)
  • LC-01 to LC-04 (BUD 10600 and 10601)

1.2. A notice of information to employees concerning the above subject has been included with this Compensation Directive and will also be posted in the "Public Service Employee" page of the Compensation Sector Web site.

2. Background

2.1. Currently, the terms and conditions of employment for management category employees in the groups listed above include a parking benefit.

2.2. Employees either send their parking receipts to compensation services in order to receive a partial reimbursement or have a subsidized parking payroll deduction. In both situations, the parking benefit is a taxable benefit and is reported on the employees tax slips (T4, Relevé 1).

3. Policy

3.1. Effective July 1, 2012, the TBS will eliminate the parking benefit for certain management category employees. Employees in the specified groups above will no longer be eligible to the employer paid portion (50%) of the monthly parking expense incurred. 

4. Procedures/Instructions

4.1. The Regional Pay System (RPS) cannot be modified to add specific edits to prevent parking reimbursements with the entitlement code 281 (Reimbursement for Parking) or subsidized parking deductions with code 739 (Subsidized Parking), 839 (Subsidized Parking Arrears), 969 (Subsidized Parking-Quebec) or 972 (Subsidized Parking-Quebec Arrears) and the reference code "001" (taxable benefit for employees in the management category eligible for subsidized parking) for these employees. Compensation advisors must ensure that any new parking transactions submitted in the RPS with these codes and an effective date of July 1, 2012, or later, are done for eligible employees only.

4.2. Reimbursements

4.2.1. When an employee in the specified groups listed in section 1.1 gives a parking receipt for a reimbursement representing 50% of the monthly expense incurred prior to July 1, 2012, the compensation advisor will input an Entitlement Commence (ENC/PAC18C) transaction with the entitlement code 281. The "Effective From" (field 63) and "Effective To" (field 64) dates must reflect the month in which the expense occurred.

4.2.2. Reimbursement of the parking expense incurred on and after July 1, 2012, for employees in these groups is not permitted. Compensation advisors must return the parking receipt to the employees and refer them to the notice of information to employees included in this Compensation Directive.

4.2.3. If a reimbursement was made in error on or after July 1, 2012, the compensation advisors will inform the employee that he is no longer eligible to a parking reimbursement and will input an Entitlement Recover (ENR/PAC 18R 281) transaction to recover the erroneous reimbursement from the employee’s pay.

4.2.4. Public Works and Government Services Canada (PWGSC) will process a bulk stop effective July 1, 2012, of any ongoing parking reimbursements with code 281 for these employees, and will provide a report of the affected accounts to departments.

4.3. Payroll deductions

4.3.1. PWGSC will also process a bulk stop of all subsidized parking deductions for the employees in these groups with either deduction code 739 or 969 and the reference code "001" in field 71 (account coding/contract number), and will provide a report listing the affected accounts to departments.

Compensation advisors must not process any arrears deduction with codes 839 or 972 for parking deductions covering the month of July 2012 or later.

4.3.2. Those employees that had a payroll deduction for parking remain eligible to have the parking deducted from their pay. The compensation advisor will input a Deduction Commence (DEC/PAC 16C) transaction effective July 1, 2012, with the deduction code 541 (Parking) or 968 (Parking-Quebec) to deduct the full parking rate from the employee’s pay.

4.3.3. If the employee does not pay the Market Rates For Parking - This information is only accessible to federal government employees, and only to federal departments and agencies., or receives subsidized parking under the Policy on the Duty to Accommodate Persons with Disabilities in the Federal Public Service - This information is only accessible to federal government employees, and only to federal departments and agencies., please see the Compensation Directive CD 2011-001 for input instructions with the applicable reference codes. 

4.3.4. If a subsidized deduction was done in error effective July 1, 2012, or later, the compensation dvisor will input a Deduction Refund (DER/PAC 16R) transaction with the subsidized parking deduction code, and a Deduction Commence (DEC/PAC 16C) transaction with the regular parking deduction codes (541 or 968).

5. Inquiries

5.1. 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
Jeff Marcantonio

Carrie E. Roussin
Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): CJA 9006-1

Information Notice to Employees

Termination of the Parking Benefit for Management Category Employees

The purpose of this notice is to inform you of the Treasury Board Secretariat’s (TBS) decision to eliminate the parking benefit for employees in the management category under the following groups:

  • EX-01 to EX-05
  • DS-7A, DS-7B, DS-8
  • LC-01 to LC-04

Effective date

The TBS President has determined the effective date of this change as July 1, 2012.

Reimbursements

As you may be aware, reimbursements for parking are considered a taxable benefit and are reported on your tax slips (T4 and Relevé 1, if applicable).

You may still give to your compensation advisor any receipts for parking expenses incurred before July 1, 2012, to receive a reimbursement that represents 50% of the actual cost for your parking space.

As of July 1, 2012, you are no longer eligible for a reimbursement of the employer paid portion for your parking.

Payroll Deductions

Currently, your subsidized parking deduction represents 50% of the actual cost for your parking space. The remaining 50%, which is paid by the employer, is reported as a taxable benefit on your tax slips. Effective July 1, 2012, your compensation advisor will start a new deduction in order to deduct the full parking rate from your pay.

For the 2012 taxation year, a parking taxable benefit will be reported on your tax slips only for the months where you had a subsidized parking deduction. There is no taxable benefit when you pay the full market rate for your parking space.

Please contact your compensation services if you have any questions regarding the information contained in this notice.