[Canada] Phoenix backlog must be cleared to avoid old errors infecting new system

In Canada, a new report from the auditor general has stated that the federal government is running out of time to clear the backlog of public service pay transactions under the old Phoenix system if it wants to avoid infecting the new payroll system with similar errors, Yahoo reports.

The report, from the Office of the Auditor General of Canada, was released on March 23. It said the government has made "limited progress" in eliminating a backlog of pay transactions, which, as of September 30, 2025, stood at more than 233,000 and affected at least 133,000 employees.

The backlog reportedly includes all transactions that were not processed within service standards.

Listen to the GPA’s Phoenixed Podcast to learn more about the Phoenix payroll disaster.

"This is very important because if the backlog is not cleared before the transition to Dayforce, there is a risk that existing errors will carry over and undermine the effectiveness of the new system," the report said.

It stated that, earlier this year, the government shortened the timeline for bringing departments and agencies under Dayforce by about three years, which "significantly" reduced the time available to clear the backlog.

The report said this was done in part to mitigate the "complexities and costs" of simultaneously operating two pay systems for several years.

"It will be important for Public Services and Procurement Canada to identify early on, monitor regularly, and mitigate the risks that a shortened schedule could create so as to avoid pay issues similar to the ones experienced from the deployment of Phoenix," it said.

The report concluded that the Treasury Board of Canada Secretariat had made "slow progress" on simplifying pay rules.

It said Public Services and Procurement Canada has been customising Dayforce to work without simplified pay rules. It said the government has asked Dayforce to develop three custom applications that would cost Ottawa about $4 million per year.

"Officials told us this was done so that the slow progress in simplification would not hinder the implementation of the new pay system," the report said.

The report also revealed that, while the government has estimated replacing Phoenix with Dayforce will cost more than $4.2 billion, preliminary estimates failed to include costs for departments and agencies to transition to the new system.

At a March 23 press conference, Auditor General Karen Hogan reportedly said the $4.2 billion cost estimate to transition to Dayforce is "rough", adding that she expects the actual cost to be higher.

"I think this is an opportunity for the government to really think differently here and not just think in silos," Ms Hogan said. "Think about the fact that every single department and agency will have to change the way they work, change their processes and onboard, and that comes at a cost."

Source: Yahoo

In Canada, a new report from the auditor general has stated that the federal government is running out of time to clear the backlog of public service pay transactions under the old Phoenix system if it wants to avoid infecting the new payroll system with similar errors, Yahoo reports.

The report, from the Office of the Auditor General of Canada, was released on March 23. It said the government has made "limited progress" in eliminating a backlog of pay transactions, which, as of September 30, 2025, stood at more than 233,000 and affected at least 133,000 employees.

The backlog reportedly includes all transactions that were not processed within service standards.

Listen to the GPA’s Phoenixed Podcast to learn more about the Phoenix payroll disaster.

"This is very important because if the backlog is not cleared before the transition to Dayforce, there is a risk that existing errors will carry over and undermine the effectiveness of the new system," the report said.

It stated that, earlier this year, the government shortened the timeline for bringing departments and agencies under Dayforce by about three years, which "significantly" reduced the time available to clear the backlog.

The report said this was done in part to mitigate the "complexities and costs" of simultaneously operating two pay systems for several years.

"It will be important for Public Services and Procurement Canada to identify early on, monitor regularly, and mitigate the risks that a shortened schedule could create so as to avoid pay issues similar to the ones experienced from the deployment of Phoenix," it said.

The report concluded that the Treasury Board of Canada Secretariat had made "slow progress" on simplifying pay rules.

It said Public Services and Procurement Canada has been customising Dayforce to work without simplified pay rules. It said the government has asked Dayforce to develop three custom applications that would cost Ottawa about $4 million per year.

"Officials told us this was done so that the slow progress in simplification would not hinder the implementation of the new pay system," the report said.

The report also revealed that, while the government has estimated replacing Phoenix with Dayforce will cost more than $4.2 billion, preliminary estimates failed to include costs for departments and agencies to transition to the new system.

At a March 23 press conference, Auditor General Karen Hogan reportedly said the $4.2 billion cost estimate to transition to Dayforce is "rough", adding that she expects the actual cost to be higher.

"I think this is an opportunity for the government to really think differently here and not just think in silos," Ms Hogan said. "Think about the fact that every single department and agency will have to change the way they work, change their processes and onboard, and that comes at a cost."

Source: Yahoo