Canadian Payroll Reporter - sample

3 Canadian HR Reporter, a Thomson Reuters business 2018 News CPR | September 2018 Keeping up with current payroll legislation BY SHEILA BRAWN STAYING up to date with leg- islative and regulatory changes can be a challenge for payroll professionals. With legislatures in most Ca- nadian jurisdictions set to re- sume in the coming weeks, there will likely be legislative and regu- latory changes ahead. Here is an update on the status of some payroll-related propos- als from across Canada: Federal There are a number of changes coming. Parliament has already passed amendments to the Canada Pension Plan (CPP) that will see employer and employee contribution rates rise over seven years, beginning in 2019. In 2024, the government will add a separate CPP contribution rate and upper earnings limit for higher income earners. Beyond CPP, the government has proposed changes that will affect employment insurance (EI). In this year's budget, it pro- posed a new "use-it-or-lose-it" EI benefit for parents who agree to share parental leave, begin- ning in June 2019. The govern- ment has not yet tabled legisla- tion to implement it, however. It would provide up to five extra weeks of benefits if parents share EI's 35-week parental benefits and up to eight additional weeks for those sharing EI's 61-week pa- rental benefits. EI pays parental benefits for up to 35 weeks over 12 months at 55 per cent of in- surable earnings (to a maximum amount) or for up to 61 weeks over 18 months at 33 per cent. The government has also pro- posed a number of labour stan- dards changes that will affect federally regulated workplaces. Last December, Parliament passed amendments to the Can- ada Labour Code that, once in effect, will allow employees to take time off in lieu of overtime pay, require advance notice for shift changes, and give employ- ees the right to request flexible work schedules. The amendments will also provide for three days of family responsibility leave, 10 days for family violence leave, and five days of leave for traditional Ab- original practices (for example, hunting, fishing, harvesting). In this year's budget, the govern- ment announced plans to make five of the 10 days for family violence leave paid days. It has not yet announced when it will implement the changes. The government is also con- sidering changes to the rules for employee repayments of em- ployer overpayments that occur because of a clerical or adminis- trative error. Currently, employees must pay back the gross amount to their employer and recover ex- cess source deduction withhold- ings from the Canada Revenue Agency. The government is consider- ing allowing employees to repay the amount net of withholdings. It said any rule changes would apply as of 2018. British Columbia This fall, the government is ex- pected to table legislation to implement an Employer Health Tax (EHT). It would apply to employers with annual provin- cial payrolls exceeding $500,000. The tax, which is expected to take effect Jan. 1, 2019, will help replace revenue lost when the government eliminates Medical Services Plan premiums in 2020. The government is also con- sidering employment standards changes. It has not announced any specific amendments yet, but see DOMESTIC page 8 ✔ To keep employees paid accurately and on time ✔ To help YOU Pay Yourself First ✔ To keep organizations compliant Talk to your payroll professional and download free resources at payroll.ca/npw NATIONAL PAYROLL WEEK SEPTEMBER 10-14, 2018 #NPW2018

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