Canadian Payroll Reporter

January 2019

Focuses on issues of importance to payroll professionals across Canada. It contains news, case studies, profiles and tracks payroll-related legislation to help employers comply with all the rules and regulations governing their organizations.

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Payroll Reporter Can R Can R adian adian a January 2019 B.C. implements employer health tax Province joins likes of Manitoba, Newfoundland and Labrador, Ontario, Quebec BY SHEILA BRAWN BEGINNING this month, employers in Brit- ish Columbia will have to adjust to a new payroll tax. On Jan. 1, the provincial government im- plemented the employer health tax (EHT). It applies to employers whose annual B.C. payroll exceeds $500,000. For employers whose payroll is between $500,000.01 and $1.5 million, the tax rate is 2.925 per cent on the amount of payroll that exceeds $500,000. For payroll over $1.5 million, it is 1.95 per cent on the entire B.C. payroll. Different rules apply for registered charities and non-profits. With the EHT, B.C. joins other provinces that have long levied similar taxes, includ- ing Manitoba, Newfoundland and Labrador, Ontario, and Quebec. In Manitoba, a health and post-secondary education tax levy applies to employers with a permanent establishment in the province whose total annual payroll is more than $1.25 million. The province implemented the tax in 1982. see ROUNDUP page 7 PM #40065782 Legislative Roundup Changes in payroll laws and regulations from across Canada see MUCH page 6 Credit: poemnist (Shutterstock) see TAXES page 2 News in Brief pg. 4 No EI premium relief for hiring youth: Feds | B.C. raises minimum piece rates for farm workers | Payroll clerk faces fraud charges Paid or unpaid leaves? pg. 3 Ontario changes markedly different from other provinces Ask an Expert pg. 5 Issuing ROEs when changing pay period type | Workers' compensation maximums for 2019 What's new for 2019? Summarizing legislative updates, from statutory deductions to payroll levies BY SHEILA BRAWN STAYING on top of the myriad of payroll-related changes at this time of year can be a challenge. To make it a little easier, below is a rundown of some rate and rule changes for 2019 that payroll professionals should be implementing: Federal updates CPP: On Jan. 1, the federal government began implementing con- tribution rate increases for the plan. Manitoba New rules for hiring young people apply On Nov. 26, Manitoba raised the minimum age of employment from 12 years to 13 and implemented a mandatory work readiness course for children under 16. The work readiness course teaches young employees about their rights and responsibilities in an employment relationship.

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