Pay Deductions Question

[comicnut]

Hello,

Have a question about pay deductions that I'm hoping someone can help with.

I am Reg F.  Monthly pay rate of $5527, PLD 742.50 for this pay period.
For those that don't know PLD is only taxable, no other deductions.

I am getting $100 per month deducted from pay for pension buy-back (confirmed with BOR).

My Superannuation deduction for this month according to my pay statement was $775.15.  Subtract $100 buy back = $675.15

Current rates this year are 6.2% on first $50100 and 8.6% thereafter. 
Therefore my deduction should be $258.85 (6.2% on the first $4175) + $116.27 (8.6% on the remainder) = $375.12

So I'm getting an extra $300 per month deducted off my pay for pension.  Any ideas?

I already called the BOR and they were less than helpful in the matter.

 

[DAA]

Could be a "Pension Adjustment" of some sort.  Your BOR should be able to pull up the transaction and to try and identify why.  It all balances out at the end of the year, so if it happens again next month, then you need to go back and find out what is going on.

 

[comicnut]

As mentioned, already contacted the BOR and the person had no idea what they were talking about.

They started saying that you have to add the Supp Death Benefit deduction to it and Disability amount to it etc.

At that point I just thanked them for their time and hung-up.

 

[DAA]

You would have to go in person to sit down with the Clk and go over your pay screens to see just what has happened with emphasis on the Pension Menu (ie; FZQEKE and FZQESE Screens)

 

[comicnut]

As an addition I will add that I just checked my end-month pay statement and the PLD amount (which is the only new earning on the statement) was not assessed Superannuation.  So the extra $300

But on another note it was assessed CPP and EI, so that goes against what the BOR told me as well.  But I really think if PLD is not pensionable with the CF then it shouldn't be pensionable with the CPP, or EI for that matter.

 

[comicnut]

Okay,

Thank DAA,

At least with those two screen names I know what to ask for.

 

[Blackadder1916]

But on another note it was assessed CPP and EI, so that goes against what the BOR told me as well.  But I really think if PLD is not pensionable with the CF then it shouldn't be pensionable with the CPP, or EI for that matter.

As with much in life, it matters not what you think but what law and regulation say.  This from T4130 Employers’ Guide - Taxable Benefits and Allowances

Cash benefits

Canada Pension Plan (CPP) – When a benefit paid in cash is taxable, it is also pensionable. This means you have to deduct CPP contributions from the employee’s pay. It also means that you have to pay the employer’s share of CPP to the Canada Revenue Agency (CRA).

If the employment is not pensionable under the Canada Pension Plan, then any taxable benefits paid in cash are not pensionable and are also not subject to CPP contributions. For more information, see Excluded employment in Chapter 2 of Guide T4001, Employers’ Guide – Payroll Deductions and Remittances.

Employment Insurance (EI) – When a benefit paid in cash is taxable, it is also insurable. This means you have to deduct EI premiums from the employee’s pay. It also means that you have to pay the employer’s share of EI to the CRA.

If the employment is not insurable under the Employment Insurance Act, then any taxable benefits paid in cash are not insurable and are also not subject to EI premiums. For more information, see Excluded employment in Chapter 3 of Guide T4001, Employers’ Guide – Payroll Deductions and Remittances.

Income tax – When a benefit paid in cash is taxable, you have to deduct income tax from the employee’s total pay in the pay period.

I can't speak to what your BOR told you (obviously I don't know how knowledgeable they are) nor on the current minutiae of pay accounting in the CF (since I am now retired from the CF and frankly don't care) but the application of current income tax, CPP and EI rules are the same whether one is in the military or not.

Also, there are maximum amounts that are pensionable under CPP ($50,100 minus basic exemption of $3,500 = $46,600) and insurable under EI ($45,900).  Any earnings (and taxable benefits) an individual has above those amounts are not subject to deductions for CPP and EI.  Calculation of the employee's premiums are based on the "total" of pay and allowances in a pay period (e.g. monthly) using the applicable percentage rates.  It is not pro-rated to spread the premiums out over the year.  Once an individual reaches the maximum annual premiums then deductions (for that particular employment) stop.  If an individual earned enough (from a single employer) in January, then there would be no more deductions for the rest of the year.

 

[Cdnleaf]

As mentioned, already contacted the BOR and the person had no idea what they were talking about.

They started saying that you have to add the Supp Death Benefit deduction to it and Disability amount to it etc.

At that point I just thanked them for their time and hung-up.

Mr. Comicnut, IMO the whole blame the clk at the OR is really tiring. Saying thanks and hanging up is completely passive-aggressive and serves nothing; other than inspiring a daft post on this site. Please refer to the jpeg in my sig block which I feel is a fairly accurate assessment of your current disposition. Perhaps become acquainted with the truly professional competencies and training required of the servicemen/woman, you are attempting to solicit support from now. All the best.