A Reminder: Paycheques for the Retroactive Period and Tax Deductions at Source
March 06, 2009
In some cases, the Income Tax Act allows lump-sum payments, such as retroactive pay, to be issued without tax being withheld, or with a reduced amount of tax withheld – for example, if you wish to use the payment to contribute to your RRSP.
The appropriate form to complete is a “Request to Reduce Tax Deduction at Source” and can be found here:
Canada Revenue Agency Form T1213:http://www.cra-arc.gc.ca/E/pbg/tf/t1213/README.html
If you are a resident of Quebec you will also need to complete the following form TP-1016-V:http://www.revenu.gouv.qc.ca/eng/formulaires/tp/tp-1016-v.asp
Please keep in mind that that requests of this nature should be made well in advance of receipt of the retroactive pay.
For those members whose contracts have recently been ratified and are about to receive a retroactive pay, it may be beneficial to contact your pay and benefits advisor for more information, at your earliest convenience.