Canadian Payroll Reporter

December 2017

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 www.payroll-reporter.com December 2017 Underestimating complexity led to Phoenix problems: Report Review of troubled pay system released by federal government BY SHEILA BRAWN THE FEDERAL government's failure to fully appre- ciate the intricacies involved in changing the way it administered payroll led to the problems it faced when it launched its Phoenix pay system last year, a recently released independent report said. "It is our view that fundamentally it was the under- estimation of the initiative's complexity that led to its downfall," said the report by consulting firm Goss Gilroy. Called Lessons Learned from the Transforma- tion of Pay Administration, the report stems from a study it carried out earlier this year on the govern- ment's Transformation of Pay Administration Initia- tive (TPA). Problems with Phoenix have been ongoing since the government began rolling it out in Feb. 2016. see ROUNDUP page 7 PM #40065782 Legislative Roundup Changes in payroll laws and regulations from across Canada see QUEBEC page 6 Credit: Chris Wattie (Reuters) ink your payroll is complex? ink again Canada 31st in payroll complexity: Survey BY SHEILA BRAWN CANADA RANKS in the bottom 40 per cent when it comes to the complexity of doing payroll, says a new report measuring the intrica- cies of payroll in 48 countries. The Global Payroll Complexity Index 2017, prepared by HR and payroll solutions provider NGA Human Resources, gave Canada an average complexity score of 5.07 out of 10, below the global average of 5.54. That placed Canada at number 31 on the list. The country with the most complex payroll was France, with a score of 7.59, followed by Italy at 7.56. Malaysia had the least com- plex payroll of the countries measured, scoring 1.18 on the scale. The United States ranked 18th, with a score of 5.78. Canada Government proposes changes to Canada Labour Code The federal government is proposing to make a number of changes to federal labour standards. The proposals are part of Bill C-63, the Budget Implementation Act, 2017, No. 2, which the government tabled in the House of Commons on Oct. 27. It proposes the following changes, among others, to Part III of the Canada Labour Code: • Employees would be allowed to take time off in lieu of overtime pay if they requested it. The time off would be taken at at least 1.5 see CHANGE page 2 News in Brief pg. 4 Senate distances itself from Phoenix | Salary increases to average 2.4 per cent | Average weekly earnings up in August | NYC bans questions on salary history Ask an Expert pg. 5 Income tax on banked overtime pay| Required notice for pay cycle changes | Year-end reporting for garnishments Get ready pg. 3 Tips, tricks for fi ling your annual T4 and RL-1 information returns Public servants take part in a protest calling on the federal government to fi x its Phoenix payroll system in Ottawa, Oct. 31, 2016.

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