ARCHIVED CD 1994-009
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February 28, 1994
SUBJECT : Changes to Parking Rates/Ontario Retail Sales Tax
1.1 The purpose of this directive is to provide you with the necessary instructions for processing parking deductions for employees using parking facilities situated in the province of Ontario.
2.1 Effective July 1, 1993, the Ontario Retail Sales Tax applies to parking fees charged to employees using Crown-owned or leased facilities situated in the province of Ontario.
3.1 The parking rates, as provided in the Treasury Board Personnel Management Manual, have been updated to include the Retail Sales Tax and the new rates are to be changed in the pay system for the first pay of April 1994.
3.2 The change of rate and the collection of provincial retail sales tax arrears for parking will be done automatically for parking deduction code 541.
3.3 The change of rate and the collection of provincial retail sales tax arrears for parking will be done manually by the departments for the Management Subsidized Parking deduction code 739 .
3.4 In order to collect the provincial retail sales tax arrears, a new deduction code 937 (Provincial Tax Arrears - Parking) has been established. This new code will be operational in the pay system effective March 10, 1994.
Note: This code is to be use exclusively for this exercise.
3.5. Parking Code 541
Effective the first pay of April 1994, all employees working in the province of Ontario who have a deduction under code 541 will have the parking charges automatically changed by the pay system to include the provincial retail sales tax.
3.6 The provincial retail sales tax arrears for parking owing for the period July 1, 1993 to March 31, 1994 inclusive will also be recovered automatically.
3.7 As the amount owing is for a period of several months and may cause financial hardship for some employees, the arrears will be collected over a period of three months from April 01, 1994 to June 30, 1994.
3.8 Two reports will be produced for the departments. The first report is for active employees working in the province of Ontario with a deduction code 541 identifying the total amount of arrears. It will be the responsibility of the Departments to review this report and take any necessary corrective action, i.e. if the recovery was missed or the amount of the recovery was incorrect.
The second report is for T - Struck-off-strength (SOS) employees working in the province of Ontario with a deduction code 541. The Departments are to recover the provincial retail sales tax for parking arrears upon the employee's return to duty.
4. MANAGEMENT SUBSIDIZED PARKING - CODE 739
4.1 Departments are to identify employees with deduction codes 739 "Management Subsidized Parking". Deductions should be amended as of April 1, 1994 with the new rates.
4.2 Departments are to calculate the provincial retail sales tax owing for the period from July 1, 1993 to March 31, 1994 inclusive and collect the arrears under code 937. Departments are also to report the amount of arrears in writing to the pay office in order that it may be included in the employer paid share. Upon receipt of the above written notification, the pay offices will be responsible to credit element 718 (YTD Additional Taxable Benefits).
4.3 As the amount owing is for a period of several months and may cause financial hardship for some employees, the arrears can be collected over a period of three months.
5.1 Any queries on the foregoing may be directed by telephone to Debby Plumb at 819-956-2062 or Shirley Auksztinaitis at 819-956-2094 of the Advisory Services Division.
Original Signed by
Government Operational Service
Reference CJA 1290-0
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