Claims for expenses and financial losses due to Phoenix: claims for impacts to income taxes and government benefits

5. Claims for impacts to income taxes or government benefits and credits

The Government of Canada is doing everything possible to ensure that no employee suffers financial losses because of Phoenix.

If you were owed salary from one year that was paid the following year (for example, salary owed from 2016 was paid in 2017), you might incur a financial loss related to:

  • paying a higher rate of income tax
  • reduced government benefits and credits, such as the Canada child benefit

Filing a claim will not impact your pay, as claims are not processed through the Phoenix pay system.

Who can submit a claim?

To submit a claim, you must meet all of the following requirements:

  1. You must be a current or former federal public servant (includes students and casual employees) whose pay is or was administered by the Phoenix pay system
  2. You were owed salary from one year that was paid the following year (for example, salary owed from 2016 was paid in 2017)
  3. The time taken to receive your outstanding salary exceeded normal service standards

What is your situation?

  • Did you or will you pay too much income tax because your pay issues put you in a higher income bracket?
  • Were your government benefits and credits, such as the Canada child benefit or subsidized daycare, lower because, once the salary owed to you was paid out, your annual income was greater than usual?

If you have been on maternity or parental leave since the implementation of Phoenix, you might be eligible to file a claim.

Paying too much income tax
Figure 1: Scenario 1 - Marie
Infographic of Scenario 1 - Marie. Text version below:
Figure 1 - Text version

Meet Marie, who was underpaid in 2017 and received that missing pay in 2018. In 2017, she paid a little less income tax than usual. But in 2018, she paid more income tax than usual, because she was in a higher tax bracket.

  • Marie normally earns $90,000 per year (she lives and works in Ontario)
  • In 2017 she was underpaid by $10,000, earning a total of $80,000 that year
  • She subsequently received the missing $10,000 in 2018, which bumped her income from $90,000 to $100,000
  • Because of this pay problem, Marie paid $816 more in income taxes than if she had been properly paid and taxed in 2017
In dollars $ Normal (no Phoenix issues) Actual
(Phoenix issues)
Difference
2017 2018 Total 2017 2018 Total
Income 90,000 90,000 180,000 80,000 100,000 180,000 0
Income Taxes -20,486 -20,118 -40,604 -17,166 -24,254 -41,420 816
After Tax Income 69,514 69,882 139,396 62,834 75,746 138,580 -816
Entitlements to government benefits and credits

Your government benefits and credits, such as the Canada child benefit or subsidized daycare, may be lower because, once the salary owed to you was paid out, your annual income was greater than usual.

Figure 2: Scenario 2 - David
Infographic of Scenario 2 - David. Text version below:
Figure 2 - Text version

Meet David, who was underpaid in 2017 and received that missing pay in 2018. During 2019, he will receive a little less in government benefits because, in 2018, his income was higher than normal.

  • David normally earns $63,000 per year (he lives and works in Manitoba)
  • In 2017 he was underpaid by $10,000, earning a total of $53,000 that year
  • He subsequently received the missing $10,000 in 2018, which bumped his income from $63,000 to $73,000
  • Because of this pay error, David received $1,287 less in social benefits as a result the higher-than-normal income in 2018
Amount description 2018 (normal) 2018 (Phoenix) Difference

Table 1 Notes

Table 1 Note 1

Estimated using CRA’s Child and family benefits calculator; single income with 3 children

Return to table 1 note * referrer

Normal salary $63,000 $63,000 $0
2017 underpayment $0 $10,000 $10,000
Revised income $63,000 $73,000 $10,000
Social benefits Return to table 1 note * $13,860 $12,573 -$1,287

You may be in a unique situation not described here. Our goal is to ensure that no one affected by Phoenix suffers financial losses. If you have incurred a financial loss because of Phoenix, fill out a claim and provide as much information as you can. Our goal is to correct each situation and review each claim on a case-by-case basis.

Before you begin

Read the frequently asked questions carefully for information on how to complete your claim.

Your organization has a claims officer who can answer your questions, help you fill out the form, and guide you through the claims process.

How to submit your claim

To submit a claim for impacts to your income tax, you will need your notices of assessment from the Canada Revenue Agency and Revenu Québec (where appropriate) for both applicable years. Use form TBS-SCT330323 below.

If your claim also covers impacts to your government benefits, you will need all pertinent federal, provincial, or municipal government benefit statements for both applicable years. Use form TBS-SCT330324 below.

Fill out the forms as best you can. If there is any missing information, we will follow up with you or your department.

Attach a separate document to your claim if you need to provide additional explanations.

Keep a copy for your records!

Privacy notice statement

Provision of the personal information requested in this form is collected under the authority of the Financial Administration Act and will be used for assessing your request in accordance with the Directive on Payments. Refusal to provide the requested information may delay or prevent the processing of your request. The personal information you provide may be shared with the Treasury Board of Canada Secretariat’s Claims Office and Public Services and Procurement Canada. Your personal information will be protected, used and disclosed in accordance with the Privacy Act and as described in Personal Information Bank PSU 931 (Accounts Payable). Your information may also be used or disclosed for financial reporting and program evaluation. The information will be retained for seven years following the last administrative action and then destroyed. Under the act, individuals have rights to request access to and correction of their personal information. If you wish to avail yourself of these rights or require clarification about this Privacy Notice Statement, please contact your organization’s Privacy Coordinator. If you are not satisfied with the response to your privacy concern, you may wish to communicate with the Office of the Privacy Commissioner by telephone at 1-800-282-1376 or by email at info@priv.gc.ca.

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