Important information about overpayments and taxes
The Government of Canada is working hard to fix pay issues, but we understand that many employees continue to face challenges. In particular, as we approach the 2020 tax season, employees may be concerned about tax issues caused by being overpaid.
Overpayments usually occur when certain pay transactions are not submitted or processed promptly. As a result, an overpayment may happen when:
- an employee’s acting pay continues after an acting assignment has ended
- an employee continues to receive their regular salary after going on leave without pay
- leave without pay for five consecutive days or less is not entered into the system on time
It’s important to submit transactions, such as leave without pay, into Phoenix as soon as possible to avoid overpayment situations. We are asking that you please review any leave that has yet to be submitted and ensure that you enter the information into Phoenix by Monday, December 7, 2020.
If you think that you have been overpaid in 2020, here is what you should do so that your tax slip does not include your overpayment amount.
- Log in to Phoenix Self-Service and check for a pay stub with a Net Pay of $0.00. This type of pay stub indicates that an overpayment has been recorded, corrected and subtracted from your yearly earnings. If you have one of these pay stubs, no further action is required and your tax slip will not reflect the amount you were overpaid.
- If you don’t have a $0.00 pay stub or if you think you have another overpayment, speak to your manager. You should confirm that transactions that could have caused the overpayment have been approved by your manager and submitted to your Human Resources branch.
We understand that payroll issues can be complex. Should you require any assistance, please contact the Client Contact Centre at 1-855-686-4729.
Having your overpayment recorded in Phoenix will help us ensure the accuracy of your 2020 tax slip, regardless of whether or not the overpayment has been repaid.
Please note that repayment of overpayments that are subject to Treasury Board flexibilities will only start when:
- all monies owed to you have been paid
- you have received three consecutive correct pay cheques
- a recovery agreement has been established
For additional information on overpayments and tax implications, consult the Overpayments and the pay system and Accessing and managing your tax slips web pages.
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