ARCHIVED Services Pay Directive: 1990-112(55)
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November 26, 1990
SUBJECT: Self-Funded Leave - New Deduction Code
1.1 The purpose of this directive is to inform you of revised processing instructions for the reporting of Self-Funded Leave and of the necessity for IMMEDIATE ACTION prior to January 1991 processing.
2.1 Services Pay Directive 1990-111 (53) dated November 8, 1990 detailed the policy surrounding the Self-Funded Leave program and introduced an interim method of reporting these deductions through the Regional Pay System.
3.1 A new, automated method of reporting will be phased in by DSS over the next few months.
3.2 A new deduction code has been introduced:
- code 675 - "Self-Funded Leave"
This code will be input by departmental pay and benefit clerks on DSS 2517T/2549 or on-line upon confirmation by the departmental Self-Funded Leave coordinator of the start date for deductions and of the account number.
The amount to be input is a monthly amount and will be deducted 24 times per year (excluding pay period plus).
The reference number for this code will be the same as that currently used for code 795. The first three digits are 197 (the Financial Institution number for the CS Co-op) and the remaining seven digits are the individual account number.
3.3 Departments must immediately prepare and submit input to convert any account currently having deductions taken under the Civil Service Co-op code (795) to the new code, 675.
This input must be submitted prior to regular pay processing for 1991.
Input to accomplish this change includes stopping the code 795 (or amending the amount if a regular salary deduction for code 795 has also been included in the amount) and starting the deduction for code 675.
3.4 At this time, the "Additional Exemption" fields, field 43 and, if applicable, field 44, must still be used in order to reduce the amount of income tax deducted. Please note that these fields must be examined prior to 1991 processing to ensure that the amount in the field reflects the amount which will be deducted during the year 1991.
3.5 Clients are reminded that for the taxation year 1990, it is necessary to forward to their respective paying offices, in letter format, the total amounts deducted for Self-Funded Leave in order that the Gross Earnings and Canada Pension Plan (CPP)/Quebec Pension Plan (QPP) Pensionable Earnings are reduced on the Statement of Remuneration forms (T4, Relevé 1).
3.6 When the system changes have been fully implemented, client departments will be informed by their paying offices. At that time, it will no longer be necessary to include an amount in the Additional Exemption fields for tax calculation purposes, since the amount deducted under code 675 will automatically be taken into consideration for tax and CPP/QPP calculations.
Implementation of the new process (expected in March 1991) will include the automatic update of the applicable earnings fields on the Master Employee Record with total amounts deducted to-date in 1991 for Self-Funded Leave and the zeroing of amounts in the Additional Exemption fields. Important note: If any employee with a Self-Funded Leave deduction has an amount in the Additional Exemption field greater than that pertaining to Self-Funded Leave (e.g. child support), it will be necessary for departmental personnel to input a new, reduced amount in this field after the field has been cleared.
It is expected that a second financial institution will be authorized as a custodian in the new year. A Services Pay Directive will be issued at such time as this occurs.
4.1 Any queries on the foregoing may be addressed by telephone to Advisory Services Group, M. Trudel at 819-956-2065.
Original Signed by
Government Operational Services
Reference: CJA 9001-22
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