Pay woes for civil servants may translate into problems come tax time
Posted August 5, 2016 11:15 pm.
Last Updated August 5, 2016 11:18 pm.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) – Tens of thousands of civil servants are hoping problems with the federal government’s new pay system get ironed out in the next few months.
That’s because late paycheques could have major ramifications next year.
The new payment system, which was introduced in February, is being blamed for late paycheques or over payment for some 80,000 public servants.
Jack Arnold, a Vancouver certified professional accountant, says tax rates will jump up for individuals if that late pay is delivered in the New Year.
“Right now, in this point of the year, I would say it’s an inconvenience. You’ve got bills to pay, food to buy. But the magic date is December 31st,” he says.
“We are on graduated tax levels. There are different tax brackets. If you have no income in 2016 and you get double the income in 2017, you’re probably going to be paying a bit more in income in tax in 2017.”
The government says it anticipates the kinks will be ironed out by the end of October.
