1
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PURPOSE
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1.1
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The purpose of this directive is to provide you with the necessary instructions
for processing parking deductions for employees using parking facilities
situated in the province of Ontario.
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2
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POLICY
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2.1
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Effective July 1, 1993, the Ontario Retail Sales Tax applies to parking fees
charged to employees using Crown-owned or leased facilities situated in the
province of Ontario.
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3
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PROCEDURES/INSTRUCTIONS
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3.1
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The parking rates, as provided in the Treasury Board Personnel Management
Manual, have been updated to include the Retail Sales Tax and the new rates are
to be changed in the pay system for the first pay of April 1994.
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3.2
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The change of rate and the collection of provincial retail sales tax arrears
for parking will be done automatically for parking deduction code
541.
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3.3
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The change of rate and the collection of provincial retail sales tax arrears
for parking will be done manually by the departments for the Management
Subsidized Parking deduction code 739.
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3.4
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In order to collect the provincial retail sales tax arrears, a new deduction
code 937 (Provincial Tax Arrears - Parking) has been established. This
new code will be operational in the pay system effective March 10,
1994.
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Note: This code is to be use exclusively for this exercise.
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3.5
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Parking Code 541
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Effective the first pay of April 1994, all employees working in the
province of Ontario who have a deduction under code 541 will have
the parking charges automatically changed by the pay system to include
the provincial retail sales tax.
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3.6
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The provincial retail sales tax arrears for parking owing for the period July
1, 1993 to March 31, 1994 inclusive will also be recovered
automatically.
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3.7
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As the amount owing is for a period of several months and may cause financial
hardship for some employees, the arrears will be collected over a period of
three months from April 01, 1994 to June 30, 1994.
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3.8
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Two reports will be produced for the departments. The first report is for
active employees working in the province of Ontario with a deduction
code 541 identifying the total amount of arrears. It will be the responsibility
of the Departments to review this report and take any necessary corrective
action, i.e. if the recovery was missed or the amount of the recovery was
incorrect.
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The second report is for T-SOS employees working in the province of
Ontario with a deduction code 541. The Departments are to recover the
provincial retail sales tax for parking arrears upon the employee's return to
duty.
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4
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MANAGEMENT SUBSIDIZED PARKING - CODE 739
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4.1
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Departments are to identify employees with deduction codes 739 "Management
Subsidized Parking" .Deductions should be amended as of April 1, 1994 with
the new rates.
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4.2
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Departments are to calculate the provincial retail sales tax owing for the
period from July 1, 1993 to March 31, 1994 inclusive and collect the arrears
under code 937. Departments are also to report the amount of arrears in writing
to the pay office in order that it may be included in the employer paid share.
Upon receipt of the above written notification, the pay offices will be
responsible to credit element 718 (YTD Additional Taxable
Benefits).
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4.3
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As the amount owing is for a period of several months and may cause financial
hardship for some employees, the arrears can be collected over a period of
three months.
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5
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INQUIRIES
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5.1
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Any queries on the foregoing may be directed by telephone to Debby Plumb at
(819) 956-2062 or Shirley Auksztinaitis at (819) 956-2094 of the Advisory
Services Division.
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P. Charko
Director General
Compensation Sector
Government Operational Service