Phoenix and taxes: what you need to know

Now that tax filing season is in full swing, PSAC wants to remind its members in the federal public service about some important information regarding Phoenix-related tax implications. 

Incorrect T4

If you believe you have received an incorrect T4 you need to report this. If you are in a department or agency served by the pay centre you can contact the call centre at 1-855-686-4729. If your pay is administered by your department or agency, speak to your in-house compensation advisor or your manager for further information.

Reimbursement for tax services

If you have experienced pay issues you are eligible for a reimbursement of up to $200 for tax advice services.

To file a claim, complete this online form.

More information can be found at Claims for expenses and financial losses due to Phoenix: reimbursement for tax advice.

Useful information from CRA

The Canadian Revenue Agency has developed several online tools to assist federal public service workers dealing with tax implications due to Phoenix. These can be found at Frequently Asked Questions – 2017 Tax Implications of Phoenix payroll issues.

For CRA telephone support, call 1-888-556-5083.

Reduced or missing government benefits

If you received an overpayment, this may have resulted in the reduction of your government benefits or credits, such as the Canada child benefit. You are eligible for an interest free advance for missing or reduced benefits.

To file a claim, complete this online form.

More information can be found at Claims for expenses and financial losses due to Phoenix: request an advance for government benefits.

Overpayment recovery: net amount versus gross amount

Under the government’s current policy, for overpayments that are not reconciled in the same calendar year, an employee is responsible to repay the gross amount. However, the employee only received the net amount. This is done with the supposed expectation that the employee will receive the difference between the net amount and gross amount in your tax return.

PSAC has repeatedly raised concerns regarding the inequity of requiring employees to repay more than they received, as well as the likelihood that many cases will not be resolved with a tax return. PSAC continues to push the government to grant those who received overpayments through Phoenix an exemption from having to repay the gross amount, and to only require them to repay the net amount.

Add your voice and tell Prime Minister Justin Trudeau that asking federal public service workers to pay back more than they received is unfair by signing our petition.


March 21, 2018