Use of Entitlement code 035, Expenses - Commuting Allowance

Date: September 9, 2009

To: Heads, Compensation and Labour Relations

While conducting research and monitoring on the use of Code 035, expenses - commuting allowance, it was discovered that Code 035 has been erroneously used when paying commuting assistance as it pertains to the National Joint Council (NJC) Commuting Assistance Directive.  This is to clarify that this is a taxable benefit, and, therefore, Code 142 is to be used to pay this entitlement.  Code 035 is programmed in the Regional Pay System (RPS) as a non-taxable entitlement.

We suggest that you review the files that may be affected in order to rectify and assess the need to take appropriate action.  Please note that this may include issuing amended T4s to affected employees.

Please ensure that any future payments of this entitlement are made using Code 142, in order to comply with the provisions of the Income Tax Act.

Further information will be provided by Public Works and Government Services Canada (PWGSC) on the use of Codes 035, 130 and 142, which are associated with commuting allowances.

Departmental Compensation and Labour Relations managers should direct any questions to their appropriate corporate officials who, if need be, can contact the Pay Administration Section.

Thank you for your cooperation.

Carl Trottier
Senior Director
CPA Compensation Operations
Compensation and Labour Relations