Taxes 2017

[nzwasp]

So my employer majorly fucked up my T4.

My last payslip last year showed I was paid 110k approx
My T4 shows I made 99k

The reason is because I was getting "uplift" for working at a remote site and during the year our payroll couldn't figure out if it was taxed or how to tax it so they didn't tax it at all. We (about 30 of us) figured we would be paying thousands of dollars worth of taxes at tax time.

I asked my payroll just now why it was screwed up and they again asked me if it was taxable, on my payslip it was listed as "special living allowance" and under income. I think one of the basic expectations of employment is that I shouldn't have to double check the accounting of the payroll department.


One of my coworkers in this situation isn't even going to bother to get them to correct it, because they he doesn't have to pay 8k in extra tax...

[suntan]

But seriously you should follow the advice here:

https://turbotax.intuit.ca/tips/what...-accurate-5515

[nzwasp]

Also after doing a T4 and T4 summary for my nanny I cant see how they wouldn't be on the hook for paying those extra taxes.

[suntan]

Oh they'd be on the hook. Also if they didn't pay payroll properly, big fines coming their way because now they're whole year behind.

[nzwasp]

Im sure if they were on the hook they would then start deducting those taxes off our payroll this year.

Payroll basically told us (when we first started getting uplift) that they didn't know if it was taxable or couldn't figure out how to tax it. Now that the year is over we are basically being told the same thing. And the company I work for has about 15,000 employees in Canada. I have no idea how the department could screw up and not figure it out.

[lasimmon]

I dunno if they would be on the hook... I would think you still owe taxes on monies paid to you. Regardless who screws up. If you get audited that is. You wouldn't just get to keep the extra money. Thats just my thoughts and the most sensical thing in my mind.

[nzwasp]

I had already accepted last year (when they couldnt figure it out) that I would be either not getting a refund next year or paying taxes. Luckily i have kids so the childcare deduction will prob eat up all the tax I would pay but some of my coworkers received 40k + in uplift.

[macman64]

Does this apply? https://www.canada.ca/en/revenue-age...ork-sites.html

Pieces of it may not be taxable.

[nzwasp]

Hmm yes we did fill in one of these forms for this so maybe it is tax free

[infected]

Talk to an accountant if you aren't sure. CRA is all over T2222 right now and I had a blast working with them while claiming Northern Residency. I paid taxes on my uplift.

[nzwasp]

I heard back from my work and it was considered tax free, bit odd considering it's a percentage on top of your wages. Some managers were making 200k per year so receiving 40k in uplift.

[dibbz]

Should be tax free. As long as it's claimed for use to live, travel to a remote work site. Had an EP do that for me years ago.

[mrsingh]

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Should be tax free. As long as it's claimed for use to live, travel to a remote work site. Had an EP do that for me years ago.

This is the key, there is a difference between an uplift and a living allowance.

Uplift is usually there to cover the additional hours you work while on rotation at site, along with remoteness of the work location. This is usually all taxable as income.

Now living allowance is to pay for your travel, food, accommodations, etc., and is tax free. If all the travel is paid for, flights, camp, etc. you wouldn’t be eligible for a large living allowance. You might have a small eligible tax free component for travel to the transportation hubs.