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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 advise you of the financial coding to be
utilized in journalizing employer and employee shares of deficient CPP
contributions and UIC premiums to Treasury Board.
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2
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CANCELLATIONS
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2.1
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This supersedes Services Pay Directive 1991-011(06) dated January 31,
1991.
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3
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BACKGROUND
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3.1
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Section 119 of the Canada Pension Plan and Section 68 (2) of the Unemployment
Insurance Act provide the authority to pay the employer's liability out of the
Consolidated Revenue Fund under certain circumstances.
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4
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POLICY
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4.1
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Both the Canada Pension Plan and the Unemployment Insurance Act require an
employer to deduct from an employee's remuneration the prescribed contributions
and premiums. If the required deductions are not taken, any deficiencies,
subject to the time limitation on recovery contained in the Acts, become a
liability of the employer.
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4.2
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Underdeductions of contributions of premiums may be recovered from payments of
the employee's remuneration provided it is retroactive for a maximum of 12
months from the date of the first arrears deduction only. Collection of
deficiencies can only be made on a one current and one arrears basis and not in
a lump sum unless authorized by the employee.
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5
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PROCEDURES
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5.1
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Paying offices must journalize to Department 56, Treasury Board, the amount
required to cover both the employer and employee shares of the deficient
contributions or premiums.
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5.2
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The coding to journalize both the employer and employee shares of the deficient
contributions or premiums is:
CPP
49-A-990-62524-00000
UIC 49-A-990-62522-00000
Please note that regular coding should be used for separate
employers.
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5.3
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Payment of these contributions or premiums to Revenue Canada - Taxation, will
be made in accordance with the normal remittance procedures.
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6
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INQUIRIES
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6.1
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Any queries on the foregoing may be directed by telephone to the Advisory
Services Group, Peter Belanger (819) 956-2061 or Domenic Crupi (819) 956-2047.
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M.-J. Posen
Director General
Compensation Directorate
Government Operational Services
[Print Version]