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DATE: August 2, 2001
TO: Compensation Managers
Chiefs of Staff Relations
SUBJECT: Reimbursement of Membership Fees - FI Group
This is further to our bulletins dated March 5, 2001 and June 11, 2001
regarding the FI group - Professional Allowance.
The Canada Customs and Revenue Agency (CCRA) has confirmed that the
reimbursement of the membership fees in accordance with article 54 of the FI
collective agreement is considered as a non-taxable benefit for Federal Income
Tax and all provincial Income Taxes, except for Québec provincial Income Tax.
Revenu Québec confirmed to CCRA that the reimbursement of the membership
fees is considered as a taxable benefit for residents of the Province of
Québec. Revenu Québec also advised that the payment must appear on the Relevé
1 of employees who reside in Québec.
When the FI collective agreement was signed it was believed that the
entitlement code 240 could be used to pay this benefit in the Public Works and
Government Services Canada (PWGSC) pay system. However, as a result of the above
ruling from CCRA, the PWGSC pay system will be modified to reflect the
taxability issues mentioned above. An entitlement code will be set up for
departments to request these payments.
Departments are advised to continue processing requests for payment of the
Professional Allowance via their departmental Finance Section until the PWGSC
pay system is ready.
Please note that in addition to the information provided in our bulletin
dated March 5, 2001, essentially any FI who has paid the membership fees to one
of the three associations listed in article 54 of the FI collective agreement is
to be reimbursed for it, including employees at the FI-1 level.
Departmental Compensation managers should direct any questions they may have
to their corporate Compensation officials who, if need be, can contact the Pay
Administration Section.
Tom Smith
Director,
Pay Administration
Labour Relations Division, Human Resources Branch
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