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Overpayments and the pay system

From: Public Services and Procurement Canada

If you have been overpaid in 2020, this page provides information on overpayments, how to report them and how to get ready for the upcoming tax season.

Record your overpayment

Current year overpayments can be excluded from your tax slip as long as it is recorded in the pay system for the current tax year. It is not necessary for the overpayment to be recovered, or for recoveries to have started, in order to exclude the overpayment from your tax slip.

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Why do I have an overpayment?

Overpayments usually occur when certain pay transactions are not submitted or processed promptly. To avoid overpayment situations, it is important to submit transactions that impact a change in pay into Phoenix as soon as possible. A reference guide is available to assist you in understanding your role and the requirements for each of the various pay events.

Overpayments are most often a result of the following situations:

  • an employee’s acting pay did not stop when their acting assignment ended
  • an employee is (or was) on Leave Without Pay (LWOP) and continues to receive their pay
  • an employee received an allowance that they were not entitled to
How can I avoid an overpayment from appearing on my tax slip?

You can avoid having an overpayment appear on your tax slip by ensuring pay transactions are processed in Phoenix in advance. As a first step, you should confirm that any transactions that could cause an overpayment, such as leave without pay, have been entered, submitted and approved by your manager prior to the start of your leave without pay. The sooner transactions are submitted, the better.

To see if an overpayment has been recorded (accessible only on the Government of Canada network) in Phoenix, log in to Phoenix Self-Service and check for a pay stub with a Net Pay of $0.00.

Once your overpayment is recorded in Phoenix, your earnings and the applicable boxes will be adjusted and your tax slip will remove the overpayment. It is not necessary for the overpayment to be recovered, or for recoveries to have started, in order for the tax slips to be adjusted.

Will I be notified if I have an overpayment?

Yes, you will receive a letter advising you that there is an overpayment on your account once the overpayment has been recorded in Phoenix.

A pay stub with a Net Pay of $0.00 also indicates that an overpayment has been recorded in Phoenix. You can log in to Phoenix Self-Service and check for any pay stubs with a Net Pay of $0.00 to see if an overpayment has been recorded (accessible only on the Government of Canada network) in Phoenix.

Once all your transactions are processed and you have received three consecutive correct pays, you will receive another letter detailing the final amount and options for repayment. It is important to not start repayment until a confirmed recovery plan is established.

For more information, refer to overpayments and options to repay them and the flexible recovery of overpayments, emergency salary advances and priority payments.

How do I report my overpayment?

If you have been overpaid, or suspect that you may have an overpayment, you should speak with your manager to ensure all transactions have been submitted to your HR unit and are approved in the pay system. You can also consult the important information about overpayments and taxes.

Note

Leave without pay (LWOP) that is five consecutive days or less must be submitted on a timesheet in Phoenix Self-Service and then approved by a section 34 manager so that the hours are deducted from your pay cheque. See how to submit LWOP in the HR system and in Phoenix for more information (accessible only on the Government of Canada network.

Do I need to repay my overpayment right away?

No, you are not required to start your repayment until all your outstanding pay transactions have been addressed, you have received three consecutive correct pay cheques, and you have confirmed a recovery agreement. It is important to not start repayment until a confirmed recovery plan is established.

For more information refer to overpayments and options to repay them and the flexible recovery of overpayments, emergency salary advances and priority payments.

Questions

If you require additional information or support, employees and managers from all government departments can contact the Client Contact Centre.

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