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1
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PURPOSE
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1.1
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The purpose of this directive is to remind paying offices and departments of
their responsibilities with regard to the above noted topic.
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2
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BACKGROUND
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2.1
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When a pay cheque is returned to the paying office for amendment or
cancellation, where possible, action is taken to reverse the deductions and the
amounts are applied against the gross overpayment.
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2.2
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Deductions which have not been remitted to the applicable organization and
those for which there is authority to recover from subsequent remittances (e.g.
Income Tax, CPP, UIC and PSSA) are reversed and applied against the gross
overpayment.
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2.3
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In certain cases, however, deductions withheld from an employee's pay cheque
are immediately forwarded to the applicable organization (e.g. CS Co-op and
other Credit Unions). Once these deductions have been remitted, they cannot be
recovered from that organization ; thereby becoming non-reversible by the
paying office.
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2.4
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Those deductions outlined in 2.3 represent the net overpayment. These amounts
will be reflected on the overpayment notice forwarded to the employing
department to initiate the corresponding recovery action.
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3
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POLICY
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3.1
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Paying offices will endeavor to recover all outstanding amounts (normally from
first available funds) from continuing or terminated employees on the direction
of departmental personnel offices.
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3.2
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However, when an employee leaves the public service and a pay cheque is
cancelled after the fact, some deductions may already have been remitted to the
appropriate agency. Paying offices will continue to collect any outstanding
balances from future remuneration due the employee; however, the employing
department is responsible for that portion of the overpayment not
collected.
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4
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INQUIRIES
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4.1
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Any queries on the foregoing may be directed by telephone to Advisory Services
Pay at 997-7292.
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B. Crossfield
Director General
Compensation and Payments Services Branch
[Print Version]