ARCHIVED Services Pay Directive: 1991-013 (07)

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February 11, 1991

Ottawa, Canada
K1A 0S5

SUBJECT : Payment of Underdeduction of Canada Pension Plan Contributions (CPP) and Unemployment Insurance (UIC) Premiums


1.1 The purpose of this directive is to advise you of the financial coding to be utilized in journalizing employer and employee shares of deficient CPP contributions and UIC premiums to Treasury Board.


2.1 This supersedes Services Pay Directive 1991-011(06) dated January 31, 1991.


3.1 Section 119 of the Canada Pension Plan and Section 68 (2) of the Unemployment Insurance Act provide the authority to pay the employer's liability out of the Consolidated Revenue Fund under certain circumstances.


4.1 Both the Canada Pension Plan and the Unemployment Insurance Act require an employer to deduct from an employee's remuneration the prescribed contributions and premiums. If the required deductions are not taken, any deficiencies, subject to the time limitation on recovery contained in the Acts, become a liability of the employer.

4.2 Underdeductions of contributions of premiums may be recovered from payments of the employee's remuneration provided it is retroactive for a maximum of 12 months from the date of the first arrears deduction only. Collection of deficiencies can only be made on a one current and one arrears basis and not in a lump sum unless authorized by the employee.


5.1 Paying offices must journalize to Department 56, Treasury Board, the amount required to cover both the employer and employee shares of the deficient contributions or premiums.

5.2 The coding to journalize both the employer and employee shares of the deficient contributions or premiums is:

  • CPP 49-A-990-62524-00000
  • UIC 49-A-990-62522-00000

Please note that regular coding should be used for separate employers.

5.3 Payment of these contributions or premiums to Revenue Canada - Taxation, will be made in accordance with the normal remittance procedures.


6.1 Any queries on the foregoing may be directed by telephone to the Advisory Services Group, Peter Belanger 819-956-2061 or Domenic Crupi 819-956-2047.

Original Signed by
M.-J. Posen

M.-J. Posen
Director General
Compensation Directorate
Government Operational Services

Reference: CJA 9005-12, 9006-17