It’s not too late to report an overpayment.
Employees may be concerned about tax implications because of overpayments. Public Services and Procurement Canada is taking steps to minimize tax-related issues and provide flexible repayment options. No employee will be out-of-pocket for any amount above what was deposited into their account by the employer.
Employees serviced by the Pay Centre who have not yet reported being overpaid are encouraged to contact the Pay Centre at 1-855-686-4729 or to submit a Phoenix feedback form. Employees in the same situation, but who are not serviced by the Pay Centre, should contact the human resources unit in their organization. Reporting overpayments will ensure that employees receive accurate tax slips as soon as possible.
Depending on when an overpayment is reported, employees may receive an amended tax slip after they have filed their taxes. Employees are encouraged to file their taxes by the deadline of April 30, 2018. Amended slips will be sent directly to the Canada Revenue Agency and Revenu Québec, who will automatically reassess the employee’s return. Employees will not need to refile their taxes.
Because of federal tax laws, some employees may be asked to repay the gross amount of their overpayment, depending on when the overpayment was processed. However, no repayments will be required until at least July 2018. This will allow employees' tax accounts to be credited with the difference between the amount of overpayment they actually received and the amount they are asked to repay. A range of flexible repayment options will be available to minimize the financial burden of repaying an overpayment.
For more information on overpayment tax implications, see the web page on tax and repayment information for employees.
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