Canadian Payroll Reporter - sample

4 Canadian HR Reporter, a Thomson Reuters business 2018 News in Brief A look at news, facts and figures shaping the world of payroll professionals PM #40065782 2019 EI premium reduction program rates announced › OTTAWA — The Canada Employment Insurance Commission (CEIC) has announced the 2019 employment insurance (EI) premium rate re- ductions for employers taking part in the federal government's EI Premium Reduction Program. In 2019, the following rate reductions, per $100 of insurable earnings, will apply: • category 1 plans: $0.21 • category 2 plans: $0.36 • category 3 plans: $0.35 • category 4 plans: $0.39 The category refers to the group to which the government assigns an employer, based on the type of wage-loss replacement plan the employer has set up. The CEIC based the reductions on information in the 2019 Actuarial Report on the Employment Insurance Premium Rate. The report, by the EI chief actuary, provides forecasts and estimates for calculating EI rates and maximums. It projects the following premium reduction employer multipliers for 2019: • category 1 plans: x 1.269 the employee pre- mium (1.230 for Quebec employees) • category 2 plans: x 1.177 the employee pre- mium (1.111 for Quebec employees) • category 3 plans: x 1.181 the employee pre- mium (1.116 for Quebec employees) • category 4 plans: x 1.160 the employee pre- mium (1.089 for Quebec employees) The CEIC said it would notify employers registered in the plan individually of their 2019 reduced rate as individual premium reductions may be different than the category rates. The premium rate for employers not taking part in the EI Premium Reduction Program remains 1.4 times the employee's rate. New EI parental-sharing benefit to begin in March › OTTAWA — The federal government will launch a new employment insurance (EI) parental sharing benefit on March 17, 2019, Families Minister Jean-Yves Duclos recently announced. The new measure would provide an extra five weeks of EI parental benefits for parents who agree to share the program's standard 35 weeks of parental benefits. Under the standard benefits, eligible claimants receive benefits equal to 55 per cent of their average weekly insurable earnings, to a maximum amount, for up to 35 weeks. With the sharing option, parents would be allowed to take the benefits in any combination, provided that one parent took no more than 35 weeks of leave and the second parent took at least five weeks, with the total period not exceeding 40 weeks. The sharing option would also be available to parents opting for the program's extended parental benefits, which provide claimants with benefits equal to 33 per cent of their average weekly insurable earnings, to a maximum amount, for up to 61 weeks. If they agreed to share the benefits, the parents could take an additional eight weeks, for a total of 69 weeks. The government first proposed the new sharing benefit in this year's budget. At the time, it anticipated that it would launch the new benefit in June 2019. Feds move forward with Phoenix replacement › OTTAWA — The federal government is looking for private-sector vendors to help create a new pay system for its employees, while also working to stabilize its current Phoenix pay system. Public Works and Government Services Canada recently published a tender notice looking for private-sector expertise to identify possible alternatives for a new pay system. "The (government) is committed to exploring all options, and will be working with experts, unions, public servants, and technology partners to address the current pay challenges, as well as define the way forward," it said. The Phoenix pay system has been in place since 2016, but has been plagued with problems that have resulted in civil servants being overpaid, underpaid or not paid at all. The notice stated that the government wants to move to a pay system that better integrates payroll and human resources. In the meantime, it is also seeking tenders for proposals to improve Phoenix, including finding ways to more quickly process outstanding pay issues, automate some procedures, and provide training. Canadians have high debt, low savings: Survey › TORONTO — While two-thirds of working Cana- dians say they are in a better financial position than they were a year ago, many still report high debt and low savings, putting them at risk if the economy falters, says a recent survey by The Ca- nadian Payroll Association (CPA). The survey of 5,074 employees from across Canada found that 40 per cent feel overwhelmed by their level of debt, with 34 per cent saying their debt load increased over the last year. Although 69 per cent of those surveyed who are trying to save more said they were able to, 65 per cent said they save 10 per cent or less of their earnings — below recommended levels. In addition, 44 per cent said they would have difficulty meeting their financial obligations if their pay was delayed one week. While the percentage of employees who said they spend all or more than their net pay dropped from 40 per cent to 35 per cent over the past year, one in five working Canadians said they could not come up with $2,000 within a month for an emergency expense. "We would have hoped to see in the survey results that Canadians would do more to alleviate their debt and take control of their financial situation in strong economic times," said CPA president Peter Tzanetakis. "Now is the time to pay down debt, contribute to retirement savings and take control of your financial future. Many Canadians seem to be complacent and are still not focused on the big picture," he said. Employers consider changes to compensation programs: Survey › TORONTO — Growing pressure to improve their pay-for-performance programs and ensure fair, transparent pay practices is prompting some Canadian employers to consider changes to their employee compensation programs, says a survey. The survey by advisory, broking and solutions company Willis Towers Watson, found that 43 per cent of respondents are considering redesigning their annual incentive plans. In addition, 37 per cent said they are planning on changing criteria for salary increases. "Getting compensation right is becoming increasingly important as employers look to drive higher levels of performance, attract and retain talent, and make fair pay decisions," said Sandra McLellan, the company's North America business leader, rewards. "Decisions around pay, however, are becoming more complex, and many employers say their base pay and short-term incentive programs are falling short of expectations." The survey of 1,949 employers around the world, including 88 in Canada, found that several factors are prompting employers to make or consider changes to their compensation programs, including feedback from managers and employees, cost, and a changing marketplace. Other changes that respondents said they were planning to make this year or considering over the next three years include investing in new technology to support pay decisions, revising performance management programs to include future potential skills, and adding recognition programs. The survey also found that almost half (49 per cent) of respondents are planning on or considering increasing the level of transparency around pay decisions. When it comes to pay transparency and the gender pay gap, 57 per cent of Canadian organizations surveyed said fair pay is a priority. Seventy per cent of respondents said they are considering increasing their communication of activities to promote an inclusive culture, and 82 per cent said they plan to carry out a gender pay or pay equity diagnostic.

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