As tax season approaches, many PSAC members are concerned about the effects of Phoenix pay problems on their taxes.
A process is in place to avoid potential income tax implications, including situations involving outstanding salary owed to employees, overpayments and emergency salary advances.
Here is what you need to know:
- As of the week of February 13, the employer will be providing T4s.
- The government is encouraging federal public service workers to compare their T4 with their last 2016 pay stub to make sure that the amounts for total earnings for the year match.
- If there is an error or you have questions about tax issues, information is available online.
- If your T4 has an error and you do not receive a revised T4 by the tax deadline, CRA advises that you must still file your taxes on time. A revised T4 will be sent directly to CRA and any adjustments will be made later.
- You do not have to re-file if you receive a revised T4 after you have already filed your taxes.
Employees can also submit a claim for additional tax-related costs that they incur because of Phoenix problems.
If you have questions about the tax implications of an overpayment or underpayment, or about your T4, here are two useful links:
- Government of Canada: Information for employees on tax slips.
- Canada Revenue Agency: Questions and Answers – Tax Implications of Phoenix payroll issues