Overpayments on your public service pay
Overpayments and your income taxes
The timing of when the overpayment is recorded in the pay system may impact your income taxes.
Recorded in the current tax year
If your overpayment is recorded in the pay system in the same year it occurred and before the original tax slips for that year are produced, tax slips and earnings for that year will not include the overpayment.
The overpayment amount will not be considered as income for that year, and you will not be taxed on it.
Recorded for a previous tax year
If your overpayment is recorded in the pay system for a previous tax year, it will result in amended tax slips for which you will need to request a reassessment from the tax agencies for the corresponding tax years.
Within 3 years
If the overpayment is recorded in the pay system within 3 years of the payment date, you will only need to repay the net amount.
The net amount is the overpayment amount minus the taxes you already paid on it.
After 3 years
If the overpayment is not recorded in the pay system within 3 years of the payment date, you will need to repay the gross amount.
The gross amount is the total overpayment you received, before taxes were deducted.