Canadian Payroll Reporter - sample

April 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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7 Canadian HR Reporter, a Thomson Reuters business 2019 Legislative Roundup Canadian Payroll Reporter post-retirement, survivor, and disability benefits. Between 2019 and 2023, the government is gradually raising the CPP contribution rate for employers and employees from 4.95 per cent to 5.95 per cent for earnings up to the yearly maximum pensionable earn- ings (YMPE). The rate consists of a base contribution of 4.95 per cent rate, plus an extra rate called the first additional contri- bution rate. For 2019, the first additional contribution rate is 0.15 per cent. It will rise to 0.3 per cent in 2020, 0.5 per cent in 2021, 0.75 per cent in 2022, and one per cent in 2023 and later years. Combined with the base con- tribution, the total CPP employ- ee and employer contribution rate is 5.10 per cent in 2019. It will increase to 5.25 per cent in 2020, 5.45 per cent in 2021, 5.70 per cent in 2022, and 5.95 per cent in 2023 and later years. Beginning in 2024, the gov- ernment will implement anoth- er contribution rate of four per cent each for employers and em- ployees with pensionable earn- ings between the YMPE and a new upper earnings limit. The amended Canada Pen- sion Plan Regulations, pub- lished in the Feb. 20 issue of the Canada Gazette Part II, now include formulas for calculat- ing the base, first additional, and second additional contribution rates. They also set out new rules for calculating contributions when employees move from Quebec to other parts of Canada during the year. To account for the new rules, the Canada Revenue Agency re- vised its payroll deductions for- mulas as of Jan. 1. New CLC compliance and enforcement rules take effect On April 1, the federal govern- ment implemented new labour standards compliance and en- forcement rules for federally regulated workplaces. The new requirements under the Canada Labour Code (CLC) were part of Bill C-44, the Bud- get Implementation Act, 2017, No. 1, which received royal as- sent on June 22, 2017. The following provisions, published in the Feb. 20 issue of the Canada Gazette Part II, are among the rules now in effect: • Labour Program inspectors have the power to determine wages and other amounts owed to an employee based on available evidence if an em- ployer does not keep payroll records. • The labour minister has the power to order employers to carry out internal audits to determine whether they are complying with labour stan- dards rules. Employers have to report their findings to the minister, including steps taken to address situations where they were not in compliance. • The period that may be cov- ered by a payment order for unpaid wages has increased from one year to two years before the day on which a complaint was made, an em- ployee's employment was ter- minated, or an inspection was started. • Labour inspectors have the authority to issue notices of voluntary compliance if an employer voluntarily pays amounts that an inspector has found it owes to an employee without the inspector having to issue a payment order. • The Labour Program can charge administrative fees on payment orders issued to em- ployers who fail to pay wages or other amounts to employ- ees. The fees will be equal to either 15 per cent of the amounts listed in the payment order or $200, whichever is greater. • Employers requesting a re- view or an appeal of a payment order must pay an administra- tive fee, along with the amount shown in the payment order. Fees will be adjusted, with overpayments reimbursed to the employers, if the review or appeal changes the payment order. • With the agreement of the labour ministry, employers and corporate directors may provide security (for example: bond or irrevocable letter of credit) instead of a monetary amount when asking for a re- view of a payment order. Pre- viously, they had to pay the full amount of the payment order before applying for a review. • Labour Program regional di- rectors have the authority to issue orders to any person in- debted to a director of a cor- poration, ordering them to pay amounts owing to an em- ployee directly to the minister. "Some employers will face increased financial and admin- istrative costs and burdens as a result of the overall compliance and enforcement package (pri- marily due to the addition of administrative fees on payment orders)," said a government statement in the Gazette. "However, these costs should not affect law-abiding employ- ers. The latter should also ben- efit from measures that will help ensure that they are not undercut by competitors who fail to comply with the code's requirements." New Brunswick Minimum wage rising April 1 On April 1, the New Brunswick government raised the prov- ince's minimum wage rate from $11.25 an hour to $11.50. In 2018, the province began indexing the rate to increases in the consumer price index for New Brunswick, with wage adjustments set to occur every April 1. "Linking the minimum wage to an economic indicator like the consumer price index will allow New Brunswick em- ployers and employees to be better prepared for increases when they occur," said Trevor Holder, the province's labour minister. Newfoundland and Labrador Base pay rising The Newfoundland and Lab- rador government raised the province's minimum wage rate from $11.15 an hour to $11.40 on April 1. Last year, the government began indexing the minimum wage rate to increases in the consumer price index for Can- ada, with wage adjustments oc- curring on April 1 every year. Nova Scotia 55-cent increase now in effect On April 1, the Nova Scotia gov- ernment raised the province's general minimum wage rate from $11 an hour to $11.55. The rate applies to employees with at least three months of ex- perience. The rate for employ- ees with less than three months of experience will increase from $10.50 per hour to $11.05. On April 1 in 2019, 2020, and 2021, the government will raise the minimum wage for experi- enced workers by $0.30 an hour, plus an adjustment for percent- age changes in the projected an- nual consumer price index for the previous calendar year. The results will be rounded to the nearest $0.05. The minimum wage rate for inexperienced workers will con- tinue to be $0.50 less per hour than the rate for experienced workers. Regular indexing without the additional $0.30-an-hour in- crease will resume on April 1, 2022. Yukon Minimum wage bump tops $1 On April 1, the Yukon govern- ment raised the territorial mini- mum wage rate from $11.51 per hour to $12.71. The rate hike includes an in- crease of $0.90, plus a $0.30 ad- justment for percentage changes in the annual consumer price index for Whitehorse for 2018. Last year, the Employment Stan- dards Board recommended that the government gradually raise the rate to $15.12 by April 1, 2021. The government did not in- dicate whether it would do this. Instead, it asked the board to consider a number of factors for wage hikes in 2020 and 2021, including an economic impact analysis of additional increas- es and a comparison to other jurisdictions. from CPP on page 1

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