Pay: Statements, Backpay, Benefits, Deductions (Taxes, T4), Deployed ect... [MERGED]

[JBoyd]

I am also not clear about pay for Officers under DEO, is it 49000 (in pdf file posted by Jboyd) or 42444(3500 monthly in file/link posted by occam).

I believe what Occam posted was the rate of pay for RegF & ResF on class 'C' Reserve service. What I posted was the RegF Officer rate of pay from the recruiting website.

 

[Occam]

I am also not clear about pay for Officers under DEO, is it 49000 (in pdf file posted by Jboyd) or 42444(3500 monthly in file/link posted by occam).

I can't explain the discrepancy.  For some strange reason, they've quoted the salary for a 2Lt two pay increments above basic, but I can't see any reason why a DEO 2Lt wouldn't start at Basic pay increment.

I would check with a recruiting centre if I were you.  As I said before, I don't work in Pay, but I do know with 100% certainty that the Compensation and Benefit Instructions would take precedence over a PDF file that the recruiting people generated.

 

[romeokilo]

Can someone please explain the DEO section of the Officers' pay table to me? It has increasing numbers from left to right, and some of those numbers for 2Lt are higher than those for Lt. What does that mean?

 

[Occam]

Can someone please explain the DEO section of the Officers' pay table to me? It has increasing numbers from left to right, and some of those numbers for 2Lt are higher than those for Lt. What does that mean?

Normally, every year as a 2Lt you increase one pay increment until you're promoted.  You would then enter the Lt pay scale at the nearest pay level to what you were making as a 2Lt.  In other words, you never lose pay due to a promotion.  The increments are simply annual increases in your pay rate within your range of pay for rank.

 

[George Wallace]

Two Answers for you guys:

1.  DEO 2LTs come in at a higher rate of pay, as they are usually more trained than those entering under other Officer Entry Plans.  That is, they usually have paid for their Degree/Certificate/Education out of their own pockets and are entering the CF with some skills vis the person entering under another Plan and having the CF then pay for them to gain those skills.

2.  A 2LT reaching a Pay Level, like a Cpl reaching a certain Pay Level, will upon promotion to LT, like the Cpl to MCpl, go into the same Pay Level.  For example a 2LT getting paid Lvl 3 will upon promotion be paid LT Lvl 3.  In some cases you will see that the LT Lvl 1 will be less than 2LT Lvl 3, as you may notice when looking at all of the other ranks Pay Scales.

 

[AEC@34]

Just for curiosity, i am not sure if this is right place for this question.
If you start as DEO, you will be promoted automatically to Lt (after year 1), Capt (after 3 years) or it would be based on performance rather than time. NO question after Cap promotion would depend on performance, courses completed etc thanks

 

[gcclarke]

Just for curiosity, i am not sure if this is right place for this question.
If you start as DEO, you will be promoted automatically to Lt (after year 1), Capt (after 3 years) or it would be based on performance rather than time. NO question after Cap promotion would depend on performance, courses completed etc thanks

The 1 year and 3 year commissioned service requirements are cross-CF requirements.

Promotion to Lt or SLt is typically a combination of the time in requirement, and completion of some courses. Which courses are required vary by trade. For example, MARS A/SLts require completion of MARS IV and having been granted Officer-of-the-Day qualification aboard a class of HMC Ships. For Naval Engineers (Both Marine System and Combat System varieties) on the other hand require completion of their Naval Engineering Indoctrination course.

Promotion to Captain or Lt(N) is, in addition to the 3 years commissioned service, also dependent upon becoming trade qualified, the specific requirements of which vary by trade.

So, to answer what may be your main question, the requirements for promotion are exactly the same for all officers within a trade, irrespective of their entry plan. Promotion up to the point of Capt / Lt(N) is based upon qualifications earned (either through courses, or sitting boards) and time, further promotion introduces the component of merit listing, whereby only a certain number of people are promoted per year, and all those eligible are ranked, with the promotions being offered to the top X number of people.

 

[heavy reader]

Here's one for this group.

I am on TD all of the time.  When I get "reimbursed" for the TD costs (hotels, meals, rentals etc), this all shows up on my T4 at year's end as income.

So all of this money that I was reimbursed (out of pocket), I get taxed on, and probably loose about 40% to the tax man.

How (or can) I claim this at tax time, so that I don't get nuked every year?

 

[George Wallace]

Here's one for this group.

I am on TD all of the time.  When I get "reimbursed" for the TD costs (hotels, meals, rentals etc), this all shows up on my T4 at year's end as income.

So all of this money that I was reimbursed (out of pocket), I get taxed on, and probably loose about 40% to the tax man.

How (or can) I claim this at tax time, so that I don't get nuked every year?

You can go to your OR and have them deduct a higher rate of taxes from your pay.  That should do it, or at the very least cut the taxes due down to a more reasonable amount.  If you are married, have them reset your deductions to those of a single member.

 

[SupersonicMax]

TD should not be taxed.  It may appear on your T4 as a non-taxable allowances.

 

[Occam]

A friend recently received a sizable amount of back pay, spanning a three year period.  Well into five figures. 

Since the back pay was actually earned in previous taxation years, is there any way to retroactively distribute the back pay over those years for income tax purposes, rather than get dinged on the whole thing (at a higher tax rate) in the 2009 tax year?

 

[PMedMoe]

When I got my back pay (one and a half years) last year, it was taxed at the CWO rate so that I wasn't dinged with paying back taxes.  As a matter of fact, I got a return this year.  ;D

 

[Occam]

Well, that prevents you from owing money at the end of the year but you end up paying the same amount of tax either way - you're just tweaking when the tax actually gets paid. 

Given that Federal tax rates are:

15% on the first $38,832 of taxable income, +
22% on the next $38,832 of taxable income (on the portion of taxable income between $38,832 and $77,664), +
26% on the next $48,600 of taxable income (on the portion of taxable income between $77,664 and $126,264)

What I'm wondering is if there is a way for the pay people to do something like go back and reissue T4s with the applicable increases for each year, and then recalculate income tax for each year - which would probably result in three years where the income would remain below $77,664 (which is the limit of the 22% rate scale).  That would certainly mean paying less taxes than having the lump sum reported in 2009, which would push income into the $77,664 to $126,264 tax bracket and have the bulk of the back pay taxed at 26% (for Federal tax, anyways).

What I don't know is:  Can you do that, or something that achieves the same result?

 

[kratz]

The pay office is compelled to follow CRA guidelines as any other business. This means they can not change previous years' T4s if the backpay (lump-sum) was paid in 2009. The general rule is the amout of backpay (lump-sum) is taxed in the year it is paid to the individual (ref CRA Lump-Sum payments).

 

[Occam]

The pay office is compelled to follow CRA guidelines as any other business. This means they can not change previous years' T4s if the backpay (lump-sum) was paid in 2009. The general rule is the amout of backpay (lump-sum) is taxed in the year it is paid to the individual (ref CRA Lump-Sum payments).

Thanks a point in the right direction, kratz.  That clears things up a little, although I'm not sure if the circumstances of the back pay fit into the definition of a lump-sum payment ("from pensions and deferred profit sharing plans").  If it is indeed a lump-sum payment, then it looks like one of the forms at the link you posted might be useful - http://www.cra-arc.gc.ca/E/pbg/tf/t1198/t1198-08e.pdf.  It appears that form allows you to get amounts taxed as if they were actually paid in previous years.

I think the individual in question will have to make a call to CRA to find out the status of the back pay.

 

[dapaterson]

Pay is taxed in your hands when received, not when earned.  The income tax act is unfortunately quite clear on this matter.

See, for example,

Subdivision a
Income or Loss from an Office or Employment
Basic Rules

Income from office or employment

5. (1) Subject to this Part, a taxpayer’s income for a taxation year from an office or employment is the salary, wages and other remuneration, including gratuities, received by the taxpayer in the year.

Key word is received, not earned. 

 

[Occam]

That looks pretty cut and dry, dapaterson...thanks. 

Any thoughts on the applicability of the T1198 form for this situation?

 

[dapaterson]

T1198 probably does not apply (http://www.cra-arc.gc.ca/E/pbg/tf/t1198/t1198-08e.pdf), unless the conditions below are met:

What is a qualifying retroactive lump-sum payment (QRLSP)?
A QRLSP is a lump-sum payment paid to an individual (other than a trust) in a year that relates to one or
more previous years throughout which the individual was a resident of Canada. The lump-sum payment
must have been paid after 1994 from one of the following sources:

  income from an office or employment received under:
- judgment from a court or other competent tribunal;
- an arbitration award; or
- a lawsuit settlement agreement (including damages for loss of office or employment);

  benefits from Unemployment Insurance or Employment Insurance;

  benefits from a superannuation or pension plan (other than non-periodic benefits such as lump-sum
withdrawals);

  spousal, common-law partner or taxable child support payments; or

  benefits from a wage-loss replacement plan.

 

[nerdgirl]

It seems odd because you are looking at it only from the perspective of an employee on hourly wage. Lots of people in civvie street are paid a fixed salary no matter how many hours they work.

Especially management-level jobs. Usually they get compensated with a sort of extra holiday weeks per year that workers others don't get (because they are entitled to overtime, etc.)

 

[Pat in Halifax]

Keep in mind here though a 60-80 hour work week may seem a little over the top, remember where you are: out in the middle of the ocean and you can only work out, read and watch movies for so long. After 26+years, I think it safe to say that a 10-12 hour day is typical; anything less is 'slow' and boring!!!

As for the work day alongside, keep in mind that the ship needs to be 'fixed' after periods at sea. As well, general husbandry is a definitive daily requirement from general cleaning to painting. Finally, we are ALWAYS training so there is someone somewhere on a ship at any given time getting some sort of tutoring.

It's fun - I have been oft asked what I would change if I had it all to do again and call me corny but I cannot think of anything over dramatic that I would change. Long days, long deployments, lots of bitching and I am still having fun!