Reminders and Hints

1

PURPOSE

1.1

The intent of this bulletin is to provide compensation advisors with a quick list of reminders and/or hints that should help with the production of pay and pension transactions and to better position the Application and Program Support (APS) Section in providing support and assistance to the client compensation community.

1.2

In this text, use of the masculine is generic and applies to both men and women.

2

BACKGROUND

2.1

The concept for this bulletin was derived from consultations with the APS officers supporting Pay Office 36, and the analysis of a business study conducted in the summer of 2001. Based on the consultations and the business study, it was possible to identify a number of topics that generate recurring contact with APS. There can be a variety of reasons for this recurring contact, however the APS officers agreed that if some of these inquiries could be eliminated, or at least minimized, they would be more accessible to assist with complex pay and pension matters.

The design of this bulletin is to provide a repository of information resulting from frequently asked questions regarding pay and pension transaction reporting. The information is categorized by topic and the detail will be in basic general terminology. A cross reference to other information sources that provide more specific information may be added. This is an evolving document and it will be expanded to include other topics as they are developed.

Please note, that this bulletin is not intended to replace any existing reference source, but rather draw attention to certain recurring requests for information.

3

TOPICS

3.1

This document has been divided by topic headers, then subdivided by section to assist in the easy retrieval of information.

CALENDAR YEAR END

Pay Processing Schedule

Change in Employer

STATEMENTS OF REMUNERATION (T4 and like forms)

Sending a Statement of Remuneration Inquiry to the pay office

Effects of an Ongoing Recovery (PAC 18R/ENR) on the Statement of Remuneration

Where to Find Statement(s) of Remuneration Box Information

Quebec Taxable Benefits on the Relevé 1

Incorrect SIN on Statement of Remuneration

Multiple Statements of Remuneration

Distribution of Statements of Remuneration

Requesting a Duplicate of a Statement of Remuneration

Missing Groups (paylists) of Statements of Remuneration

Statement of Remuneration -- Year End Requirements/Activities

Manual Adjustment to MER (PAC 30)

Production of Amended Statements of Remuneration (Previous Year)

THINGS TO CONSIDER BEFORE CALLING APS

Be Aware of PWGSC Service Levels

Consult PWGSC Publications

Read Broadcast Messages

MAKING USE OF PWGSC WORKING TOOLS

Data Base Master (DBM) File

Transaction Data Base (TDB)

CONTACTING APS

SUPERANNUATION DEFICIENCIES

FREE FORM TEXT (FFT)

Using FFT

RESEARCHING

INQUIRIES

4

CALENDAR YEAR END

4.1

Pay Processing Schedule

The National Pay Processing Schedule is an important working tool to have available year round and particularly towards the calendar year end. The processing for the final regular pay period updates for all pay frequencies, as well as the final supplementary pay updates, are clearly identified in the schedule.

Although the APS group will issue broadcast messages to remind the client compensation community of certain critical cut off dates, becoming familiar with the schedule will help in the day to day management and control of pay and pension transactions.

It is important to remember that due to the calendar year end processing requirements, the standard two week sequence of processing events is altered in most years. Compensation advisors should consult the schedule well in advance of December in order to coordinate entries for the final regular pay period, and supplementary cheque issue of the year, as well as the first regular pay period and supplementary cheque issue for the new year.

4.2

Change in Employer

Ensure that all transactions associated to a struck off strength (SOS), reason code 19 (employee, of a department where Treasury Board is the employer, hired by an organization where Treasury Board is NOT the employer or vise-versa) are completed in the same taxation year as the SOS. If the account is not processed accordingly, the statement of remuneration in the new department will not accurately reflect the employee's earnings.

Requests to amend a statement of remuneration of this type will require a written request from the client's Manager of Compensation, explaining why the account was not finalized prior to the year-end close out.

Consult Compensation Directive 2002-017 for detailed procedures regarding a change of employer.

5

STATEMENTS OF REMUNERATION (T4 and like forms)

5.1

a) Sending a Statement of Remuneration (T4 or like form) Inquiry to the Pay Office

If an employee disagrees with amounts on the Statement of Remuneration, it is the responsibility of the compensation advisor to conduct the preliminary review and analysis to determine the validity of the employee's observation. If the compensation advisor determines that the statement is erroneous, they will then forward the inquiry to APS.

Every inquiry must include:

- A detailed statement ("received" and "entitled to receive" format); the On-line Transaction Data Base and payroll registers will be helpful in creating this statement;

- A memorandum* to identify and explain the discrepancy;

(*) The memorandum must contain the employee's name, department, paylist and Personal Record Identifier (PRI) number in addition to the name and telephone number of the compensation advisor to be contacted for additional information.

- A copy of the statement of remuneration in question;

- All the associated payment stubs (or regular and supplementary payroll registers) for the year.

As part of the preliminary analysis, compensation advisors should review the employee's taxation history available in the On-line Inquiry, Data Base Master. See section 18-3-6 of the Personnel Pay Input Manual (PPIM) for additional information.

b) Effects of an Ongoing Recovery (PAC 18R/ENR) on the Statement of Remuneration

If an ongoing overpayment recovery spans two (2) or more calendar years, the T4 of the year in which the 18R/ENR transaction was entered into the Regional Pay System (RPS) will be debited (decreased) by the TOTAL overpayment amount.

The unrecovered overpayment amount will be credited (increased) to the gross earnings of the Master Employee Record (MER) for the following year and those gross earnings will be debited as the balance of the overpayment is collected. This process is repeated at the end of each calendar year as long as there is an unrecovered balance.

Example: Ongoing recovery PAC 18R/ENR created in Pay Period 21/01 for an amount of $100.00 per pay period for a TOTAL overpayment of $1,000.00. At the end of calendar year 2001, there is an unrecovered balance of $400.00.

The RPS will automatically debit the 2001 earnings by the full overpayment amount of $1,000.00 and credit the overpayment balance of $400.00 to the 2002 earnings.

It should be noted that the accumulating gross amount field on the first regular pay, payment stub of the following year, will include the unrecovered overpayment amount of $400.00. That $400.00 amount will be reduced by the amount of $100.00 for each pay period until the overpayment is liquidated.

c) Where to Find Statement(s) of Remuneration Box Information

Section 7-3-5 of the PPIM provides a chart that makes a cross reference of the RPS, MER (field number and name) to the boxes on the statement(s) of remuneration that contain the same information.

d) Quebec Taxable Benefits on the Relevé 1

Further to the information contained in section 4.1.2 of Compensation Directive (CD) 1994-014, dated April 7, 1994, it should be noted that the amount accumulated in the MER element 753 (Quebec Taxable Benefits-PSMIP) will be debited from the amount in element 752 (Quebec Taxable Benefits-Life), prior to the production of the Relevé 1. Tax will only be charged based on the amount in element 752. APS has requested that the CD be amended to clarify this point.

e) Incorrect SIN on Statement of Remuneration

If a system generated Statement of Remuneration is produced with an incorrect Social Insurance Number (SIN), it will almost always be related to the creation of a PRI, at the time a new individual is taken on strength (TOS); meaning that the wrong SIN was used to create the PRI.

Compensation advisors (or alternates) are advised to always enter the SIN on the Central Index Inquiry screen PPIM 19-7 to determine if an individual has an existing PRI. If the system responds with a PRI, cross reference the SIN with the individual's full name, initials and date of birth.

It is strongly recommended that employees be requested to provide proof of SIN at the time of the TOS documentation. Having the proof will minimize the chance of the incorrect SIN appearing on the statement of remuneration and down line systems such as the Salary Service History and the Contributor System.

f) Multiple Statements of Remuneration

The following identifies pay actions that will generate more than one statement of remuneration in the same calendar year for one account;

- An individual transfer from one pay office to another pay office;

- A change in the province or territory of work;

- An individual transfer from one department or agency to another department or agency;

- A change from Wage Loss to No Wage Loss.

In reference to section 5.1 a) of this document, these possible conditions are to be considered in the preliminary review and analysis conducted by the compensation advisor.

g) Distribution of Statements of Remuneration

The distribution of the statements of remuneration is carried out by the Québec Production Center. Both copies of the statements (employee and employer) are sent to the client departments' payment distribution address(es). The payment distribution address(es) and associated paylists are assigned by the client department, therefore all changes must be reported by the department.

Departments are responsible to keep the "employer" copy of the statements for future reference.

h) Requesting a Duplicate of a Statement of Remuneration

As departments are provided with a copy of the statements of remuneration, requesting a duplicate statement from the pay office should be a rare occurrence. It is to be noted that creating a duplicate statement of remuneration generates a considerable amount of manual intervention for the pay and pension agent, therefore compensation advisors must carry out a thorough search for the statement(s) before requesting a duplicate. Refer to section f) and g) for things to consider as part of the search.

A request for a duplicate statement must be in writing (facsimile or electronic mail), stating that the employee and the department(s) are unable to locate their copy of the statement(s). These requests are to be forwarded to APS.

i) Missing Groups (paylists) of Statements of Remuneration

Inquiries regarding the distribution of the statements of remuneration are to be directed to the Québec Production Centre, using the "Pay Distribution Inquiry" form described in section 6.2 of Pay Office 36 Bulletin: 2001-003, dated April 5, 2001.

j) Statement of Remuneration -- Year End Requirements/Activities

At the end of each calendar year end, there are recurring activities that require manual action by the client departments and the pay offices. A Compensation Directive is issued on a yearly basis as a reminder of all these activities, and the subject will be "Year-end Requirements". If the close-out date for activities mentioned in the CD are not included in the National Pay Processing Schedule, APS will issue a broadcast message to provide the critical date. It is essential that client departments forward the required information so that it will be received in the pay office in time to have it reflected on the original statement of remuneration.

The CD, referred to in the paragraph above, will contain instructions for the pay office to credit specific elements based on the "authority document" received from the client department. The pay and pension agent will create the necessary manual adjustment(s) to the MER element(s).

k) Manual Adjustment to MER (PAC 30)

A manual adjustment to a MER (often referred to as a PAC 30), which is a pay office input only, is used to correct any element on the MER. These pay office transactions are available for the compensation advisor to view in the On-line Inquiry, Transaction Data Base (TDB). The transaction acronym associated with these types of corrections are;

ASR -- Adjust Severance Pay/Return of Contributions,

ASP -- Adjust Superannuation,

APA -- Adjust Pay and Allowances,

PPT -- Adjust Pay Period To Date,

OTH -- Adjust Other Pay Office,

SRA -- Adjust Salary Recovery,

AME -- Adjust Miscellaneous.

The TDB provides more detail on the account specific element changed as a result of a transaction with one of the above acronyms. The "Hints on How to use the TDB" in section 7.2 of this document will provide some information on how to use TDB.

l) Production of Amended Statements of Remuneration (Previous Year)

The production of amended, previous year statements of remuneration, is outlined in the National Pay Processing Schedule. When a previous year statement of remuneration has been amended, the "AMND-IND" of the appropriate DBM detail screen will be updated accordingly. See section 18-3-6-3 of the PPIM for additional information.

6

THINGS TO CONSIDER BEFORE CONTACTING APS

With the intent of providing the client compensation community with the most efficient service, the following points should be considered before contacting APS.

6.1

a) Be Aware of PWGSC Service Levels

The key interactions between compensation advisors and APS concern the core services of pay and pension interventions and advisory services. All compensation advisors should become familiar with the service levels described in the PWGSC Compensation Service Levels document. Unless otherwise advised by PWGSC, compensation advisors are not to inquire on the status of transactions that are within the realm of the service levels described in the above mentioned document. Inquiries of this type will be returned to the originator as the transaction status is readily available to the compensation advisors in the On-line Inquiry, Transaction Data Base (TDB). See section 7.2 of this document for "Hints on How to Use the TDB".

b) Consult PWGSC Publications

Consult the publications available at the Public Works and Government Service Canada (PWGSC), Accounting Banking and Compensation (ABC), Compensation Sector Web site before sending an inquiry to APS. Some of the most frequently sought information is contained under the Publications section.

c) Read Broadcast Messages

Take the time to read all broadcast messages issued by PWGSC.

The broadcast facility provides PWGSC with a quick communication vehicle to disseminate important information to the client community. Broadcast messages that affect clients on a national basis will be available at the Compensation Sector Web site and in the majority of instances the same message will be available to users accessing the On-line Pay System. Messages that affect clients of Pay Office 36 only, will not be available at the Compensation Sector Web site.

7

MAKING USE OF PWGSC WORKING TOOLS

For account specific information use of the On-line, Inquiry facilities described in section 18-1 of the PPIM will provide quick and easy access to current individual account detail.

Two files, that all compensation advisors must become familiar with, are the Data Base Master File (DBM) and the Transaction Data Base (TDB).

7.1

Data Base Master File (DBM) -- PPIM 18-3

This file contains the latest MER information grouped in the following categories:

Personnel Status;

Salary Deductions and Entitlements;

Statutory Deductions;

Taxation history;

Previous Year Status;

Miscellaneous.

The DBM provides the user with a current (as of the last RPS update) image of an employee account. By viewing the DBM detail in conjunction with transaction processing, the user can have a "before" and "after" snapshot of an account.

7.2

Transaction Data Base (TDB) - PPIM 18-4

This file provides displays of transactions using the same screen as used for the input transaction created but with the stage of processing noted (e.g., Pending Correction, Pending Verification, Hist. Upd. Master). The TDB provides a list of all transactions created for an account within the last two years. This includes transactions created by the RPS, the pay office and a client department or agency.

Transactions that are system generated will have a Transaction Sequence Number that starts with the number five (5). This also applies to client departments or agencies that transmit their pay and pension transactions to PWGSC via Tape Input.

Transactions that are created by the pay office and the client department or agency will start with a zero (0).

Using the TDB to follow up on transactions will let the user know when permanent line salary changes are processed, when salary adjustment payments are issued, and when cheques are cancelled. This follow up step is particularly useful when multiple transactions are to be processed for one account but in different RPS updates.

7.2.1

Hints on How to Use the TDB

At Sign On

1)

From the Pay Benefits Menu, press the "Inquiry" function key.

2)

When the Inquiry Menu appears, type "TDB" and press "enter". This will bring you to the Transaction Data Base Menu.

3)

There are two options available in the Transaction Data Base Menu:

a)

If you know the transaction sequence number, you can type it and then press "enter".

This will make the Actual Transaction Screen appear. The status of that transaction in the RPS will appear at the bottom of the screen. For additional information, type "APPE" and press "enter"; the Transaction Data Control Screen will appear. For further information on the various stages of a transaction, see section 18-4-1 of the PPIM.

b)

If you don't know the transaction sequence number, type your department acronym, the paylist number, the PRI and press "enter".

A list of all transactions available for the account for the last two years, starting with the CURRENT portion of the TDB that contains the transactions that have been created in the last 60 days followed by the ARCHIVE portion of the TDB will appear for the remaining transactions. Then, select one or more transaction sequence numbers and press "enter".

To exit from the TDB press the "Inquiry" function key.

7.2.2

If You are Working on a Transaction

* Press the "Inquiry" function key and the Inquiry Menu Screen will appear.

* Type "TDB" and press "enter" and the Transaction Data Base Menu will appear.

* Proceed as above using method "3a)" or "3b)".

Once you have finished, press the "Inquiry" function key to return to the transaction on which you were working.

7.2.3

If You Are Working on a Transaction or on Another Pay List

* First, make sure you have a sequence number for your current transaction by saving or creating it.

* There are two options at this point:

a)

Press the "Ident" key to go to your pay sign on; change the pay list and press "enter", or

b)

Change the pay list from the Index menu.

* Press the "Inquiry" key.

* Proceed as in steps 2 and 3 above.

* Once you have finished your inquiry, you can retrieve the saved transaction you were working on by pressing the "Inquiry" function key and the "Ident" function key, which will return you to the Sign On Menu.

* From there, you can return to your original paylist and, if necessary, enter into the error correction area (note: this will only work if the transaction you have created has been saved). You can then select the transaction sequence number.

REMEMBER: You can view screens for transactions that were initiated by you or by the pay office.

8

CONTACTING APS

• NCR.APSPAY@pwgsc.gc.ca OR

• NCR.APSPENSION@pwgsc.gc.ca

Only the contact points identified above will be accessed on a regular basis for client inquiries.

8.1

When Inquiring by Facsimile or Electronic-mail:

a)

Clearly identify inquiries as "pay" or "pension";

b)

Identify yourself; (department, name, telephone number, and/or facsimile number if applicable).

d)

Maintain the continuity of an inquiry.

If an inquiry has been initiated with one APS officer, and there is a need for additional information or to ask another related question after the initial contact, clients should indicate whom they have been dealing with on the inquiry so that all related inquiries are directed to the same officer. The APS officer who responded to the original inquiry will have the background information and research results. Client support in this aspect will serve to eliminate the duplication of work.

8.2

When Leaving a Voice Mail Message:

a)

Identify yourself; (department, name, telephone number and/or facsimile number if applicable).

c)

Maintain the continuity of an inquiry.

If an inquiry has been initiated with one APS officer, and there is a need for additional information or to ask another related question after the initial contact, clients should indicate whom they have been dealing with on the inquiry so that all related inquiries are directed to the same officer. The APS officer who responded to the original inquiry will have the background information and research results. Client support in this aspect will serve to eliminate the duplication of work.

9

SUPERANNUATION DEFICIENCIES

9.1

At the time an employee is retaken on strength (RE-TOS), the pay office will recover superannuation deficiencies from salary in equal installments beginning from his return to duty date and extending over a period equal to twice the period of leave without pay (LWOP).

There are a few exceptions to this procedure which are identified below. However, before reviewing these exceptions it is important to note the steadfast point that will not change regardless of the employee's method of repayment. The pay office will only calculate superannuation deficiencies once the RE-TOS transaction has been processed through the Regional Pay System (RPS). It is the client department that would provide an employee with an estimate of the amount(s) to be recovered.

9.2

Exceptions

9.2.1

Employee Wishes to Repay the Superannuation Deficiency as a Lump Sum; RE-TOS Transaction NOT Processed Through the RPS.

Once the RE-TOS transaction has been created, the compensation advisor will CREATE a message in the on-line Free Form Text (FFT). The message must contain wording that clearly indicates that the recovery of the deficiency should not be started as the employee will repay as a lump sum.

Once the pay office retrieves this message, the deficiency amounts will be calculated and the appropriate form will be sent by facsimile to the client department.

9.2.2

Employee Wishes to Repay the Superannuation Deficiency as a Lump Sum; RE-TOS Processed Through the RPS; Deduction Recovery Initiated by the Pay Office.

To stop the recovery of a deficiency, the client department must report a Cash Receipt Transaction (CRT) to the pay office. Since the deficiency recovery is already started, in order to determine the full amount it will be necessary for the compensation advisor to access the on-line DBM file.

Using the deduction amount displayed in the Deduction Entitlement Select (DDT) screen, multiply the pay period amount by the number of recovery pay periods reflected on this screen (note: Death Benefit is deducted monthly).

The department is responsible for ensuring that the employee's personal cheque is remitted to Superannuation Directorate for the amount reported on the CRT.

9.2.3

Employee is Struck Off Strength (SOS) Rather than RE-TOS

In the case of an employee being struck off strength (for reasons other than death in service) rather than RE-TOS, it is the department's responsibility to recover the deficiencies. Once the SOS transaction has been processed, the pay office will calculate the deficiency amount(s) and post the amount(s) in the FFT.

NOTE:

In scenario 9.2.3 above, it states that the pay office will post the deficiency amount(s) in the FFT. The only other situation where the pay office will post the deficiency amount(s) in the FFT is when a T-SOS employee returns to duty (RE-TOS) and is then T-SOS again before the full amount of the initial deficiency is recovered. In this situation the pay office will post the "unrecovered" balance in the FFT.

10

FREE FORM TEXT (FFT)

10.1

Using FFT

This information supersedes the portion of the Compensation Operations Directorate Bulletin 1997-004 dated May 15, 1997, which deals with the "Use of Free Form Text".

The FFT provides a means to link special pay related notes to pay accounts. Even with this facility, the pay office continues to receive facsimiles from clients, when procedures (PPIM or specific to Pay Office 36) indicate that information should be posted in the FFT.

The following provides a list of the most common instances when the client department and/or the pay office are to post information in the FFT. This list is not all inclusive therefore the PPIM should be consulted for FFT usage related to other pay transactions.

10.1.1

When an employee is SOS for reason code 19 (consult section 4.2 of this bulletin for definition) the compensation advisor must update the FFT to identify the new department, pay office, paylist and, if applicable, new PRI.

10.1.2

When an employee wishes to pay deficiencies as a lump sum, the compensation advisor must advise the pay office through the FFT as soon as the RE-TOS transaction is created.

10.1.3

When an account is SOS, compensation advisors should access the FFT for:

• specific account information on 7A, 7B, 3C, and 6C accounts as well as 7C accounts that are not automated;

• notification of deduction not collected from the final adjustment issued on a 7C account where the process was automated.

10.1.4

When an employee's hours of work change from full-time to part-time, the compensation advisor should post the employee's hours of work in the FFT as soon as the Miscellaneous Staffing Action transaction (MSA) is created.

10.1.5

When an employee returns to duty after being temporarily struck off strength (T-SOS) for maternity, paternity or adoption leave, the compensation advisor should post the child's date of birth or date of adoption in the FFT as soon as the RE-TOS transaction is created.

11

RESEARCHING

If a compensation advisor has verified the PWGSC publications and working tools available and still requires assistance, it is recommended that there be a consultation with a coworker, coach, or supervisor, before contacting APS, as they may be able to provide assistance based on past experience.

It is strongly recommended that when a compensation advisor obtains the answer to a question, whether the answer is found on ones' own initiative or in conjunction with another party, that the information is noted and shared with coworkers for future reference.

12

INQUIRIES

Any requests for information regarding the foregoing should be directed to APS at (613) 952-0484.