As you know, the last CP Group collective agreement was settled by arbitration. Because the settlement was issued as an arbitral award, the retroactive payments (back pay) are treated differently for tax purposes. Learn more about it in this web post.
As you know, the last CP Group collective agreement was settled by arbitration. Because the settlement was issued as an arbitral award, the retroactive payments (back pay) are treated differently for tax purposes. As a result, all CP Group employees who received retroactive pay related to this settlement would have been issued a T1198 – Statement of Qualifying Retroactive Lump-Sum Payment through Phoenix, along with the corresponding tax slip, a TP-766.2 - Étalement d’un paiement rétroactif, d’arrérages de pension alimentaire ou d’un remboursement de pension alimentaire, required for members in Quebec.
The T1198 or TP-766.2 slip may provide a potential tax benefit. It allows the Canada Revenue Agency (CRA) or Revenu Québec to calculate the tax on your retroactive lump-sum payment as if the income had been received in the years to which it relates. In some cases, this can reduce the overall tax impact compared to having the entire amount taxed in the current year.
You can find the slip(s) in the Phoenix Pay System.
If you have questions about accessing your tax slips, please contact the compensation team or your departmental HR representative for assistance.
If you believe there are issues related to your Phoenix pay, please contact phoenix-help@pipsc.ca so the union can review the matter and provide guidance.