Canadian Payroll Reporter

December 2016

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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Series of policy changes ahead for New Year BY SHEILA BRAWN BEGINNING NEXT MONTH, employers will see changes to the Employment Insurance (EI) program that will affect their premium rates and could impact their short-term disability and supplementary benefit plans. The next year may also bring more information on possible changes to the Record of Em- ployment (ROE) and federal labour standards rules for ma- ternity, parental and caregiver leaves. As of Jan. 1, the federal govern- ment will lower premium rates from $1.88 per $100 of insurable earnings to $1.63 for employ- ees outside of Quebec. For em- ployees in Quebec, the rate will decrease from $1.52 to $1.27. Employers pay 1.4 times the em- ployee rate unless Employment and Social Development Canada (ESDC) has lowered their rate under its EI Premium Reduction Program (PRP). For the first time, the Canada Employment Insurance Com- mission (CEIC), a tripartite organization made up of repre- sentatives from business, labour and the federal government, set the EI rate. Under amendments to the Employment Insurance Act that apply as of 2017 rate-setting, the CEIC is responsible for de- termining the rate each year us- ing a new mechanism called the Payroll Reporter Can R Can R adian adian a December 2016 see WAITING PERIOD page 2 News in Brief pg. 4 CPP maximums increase |Manitoba levy mailouts go awry|Feds still working on Phoenix | Quebecers want minimum wage bump Ask an expert pg. 5 ROEs during self-funded leaves|Employer-paid counselling fees | Paying wages in lieu of notice when wages vary see ALTERATIONS on page 6 Credit: gwb/Shutterstock Gearing up for 2017 pg. 3 Thomson Reuters' Payroll Consulting Group provides tips to make year-end reporting more accurate and less stressful Feds move to amend CPP Employers, payroll professionals need to prepare for Bill C-26 BY SHEILA BRAWN NOW THAT the federal gov- ernment has tabled legislation to amend the Canada Pension Plan (CPP), the countdown is on for employers and payroll professionals to get ready for the changes. The government introduced Bill C-26, An Act to amend the Canada Pension Plan, the Can- ada Pension Plan Investment Board and the Income Tax Act, for first reading in the House of Commons on Oct. 6. The bill would implement an agreement in principle that fed- eral Finance Minister Bill Mor- neau and the finance ministers of nine provinces signed over the summer to change the way the CPP operates. Quebec was the only prov- ince not to sign the agreement. It plans to hold its own consul- tations on possible changes to the Quebec Pension Plan. Morneau has called the agree- ment an historic one that will provide more income security for Canadians in retirement. The proposed changes would be among the most significant amendments to the plan since it came into effect in 1966. They would include the fol- lowing proposals: • The federal government would raise the CPP contribution rate for employers and employees on earnings up to the yearly maximum pensionable earn- ings (YMPE). It would phase in the change between 2019 and EI: A look at what's on the horizon

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