Canadian Payroll Reporter

December 2018

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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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 CRA to consult on service improvements › OTTAWA — The Canada Revenue Agency (CRA) plans to implement a number of consultation initiatives to help it improve the way it provides services to Canadians, said National Revenue Minister Diane Lebouthillier. During the upcoming tax-filing season, she said the CRA will hold online and in-person public consultations on service improvements. In addition, the agency will hold a series of "design jams" with key stakeholders and users to develop service improvements that respond directly to clients' needs. The agency also plans to set up an external advisory panel on service, made up of experts from the public, private, and not-for-profit sectors, to advise it on emerging trends and practices in service design and delivery. "Over the past three years, our government has introduced a number of services to make it easier, faster and more secure for Canadians to file their taxes and get the credits and benefits to which they are entitled," said Lebouthillier. "These changes are leading to real results for Canadians. However, there is still much to be done for the CRA to achieve its goal," she said. In another effort to improve client services, the CRA appointed Mireille Laroche as its first chief service officer earlier this year. Laroche is tasked with transforming the agency's programs and services to put clients first. Lebouthillier said the agency has also undertaken a number of other initiatives this year to improve service, including consulting with small and mid-size businesses, revising its website to make it easier to find information, and releasing BizApp, which lets users view their business accounts and make payments. In the coming year, Lebouthillier said the CRA plans to improve its digital services and implement a new call centre platform, among other changes. A report from Canada's auditor general last year criticized the CRA's call centres for not always providing accurate information and for not being able to handle the number of calls they received. StatCan survey examines impact of cybercrime on businesses › OTTAWA — Twenty-one per cent of Canadian businesses reported being hit in 2017 by a cy- bersecurity incident that affected their opera- tions, a Statistics Canada survey found. The Canadian Survey of Cyber Security and Cybercrime — which StatCan said is the first of its kind in Canada — provides a look at how Canadian businesses are dealing with cybersecurity issues. For the survey, the agency polled 12,597 businesses with at least 10 employees across all sectors of the economy, except for public administration. It found that large businesses (41 per cent) were more than twice as likely to identify a cybersecurity incident as smaller organizations (19 per cent). Fifty-four per cent of businesses affected by a cybersecurity incident reported that it stopped their employees from carrying out their work, and 53 per cent said it prevented workers from using their computers or accessing email. Of businesses hit by a cyberattack, 38 per cent said the motive behind the incident was to steal money or demand a ransom, while 39 per cent could not identify a reason for the attack. About one-quarter (26 per cent) of businesses said the cyberattack tried to access unauthorized or privileged areas and 23 per cent said the attackers tried steal personal or financial information. While 95 per cent of businesses said they had some form of cybersecurity, the survey found that not everyone used the most common protective measures. A number of businesses did not use anti- malware software (24 per cent), email security (26 per cent), and network security (32 per cent). Among large firms, the use of these security measures was nearly universal, the survey said. P.E.I. minimum wage set to rise to $12.25 › CHARLOTTETOWN — The minimum wage rate in Prince Edward Island will rise from $11.55 an hour to $12.25 on April 1, 2019, the provincial government recently announced. P.E.I.'s Employment Standards Board reviews the rate every year. In its most recent review, the board recommended raising the rate to $12.25 based on economic factors in the province and on input that it received from the public over the summer. "This new minimum wage will help support Island families and communities throughout our province," said Premier Wade MacLauchlan. "We recognize our Island business community and their contributions to communities throughout our province. We will continue to work with them and build on initiatives to help them remain competitive." North American bosses, workers not in sync on job incentives: Survey › MENLO PARK, CALIF. — Employers are not of- fering the job incentives and perks that employ- ees say they value the most, a survey said. The survey, developed by staffing firm Robert Half, found that while 77 per cent of workers rated annual or biannual bonuses as their top incentive, only 44 per cent of employers offer them. Profit-sharing plans and sign-on bonuses were also highly sought (49 per cent), but only 33 per cent and 19 per cent of employers, respectively, offer them. The majority of employees surveyed also said they would like flexible work schedules (88 per cent), compressed workweeks (66 per cent), and the ability to work from home (55 per cent). While many of the employers surveyed offer flexible scheduling (62 per cent), only 17 per cent provide compressed workweeks and only 14 per cent allow telecommuting. Despite being out of sync with top incentives and perks, the survey found that most employers offer the two benefits that employees say they most want: health insurance and paid time off for sick days, statutory holidays and vacation. "Companies that don't offer in-demand non- monetary perks in addition to a competitive salary and benefits are not likely to land or keep top performers," said Paul McDonald, senior executive director for Robert Half. The survey included responses from 1,500 workers and 600 HR managers in North America. Pay raises expected to average 2.8 per cent in 2019: Survey › TORONTO — Canadian employers expect pay raises to average 2.8 per cent next year, accord- ing to a survey. The 2018 General Industry Salary Budget Survey by Willis Towers Watson Data Services found that for many job categories, average pay increases will be flat next year. Canadian employers surveyed said they expect to give professional and client management employees average pay increases of 2.8 per cent in 2019, the same as last year. Pay increases for production and manual labour employees are expected to be 2.7 per cent, unchanged from 2018. Executives may receive a slightly lower raise next year (2.8 per cent versus 2.9), while steady increases are planned for management employees (2.8 per cent) and business and technical support employees (2.8 per cent), the survey of 366 Canadian firms found. The results also showed that three per cent of employers plan to freeze salaries in 2019. Research also revealed employers continue to reward top performers with significantly larger pay raises than average performing employees (4.7 per cent versus 2.4). "Most companies are not under pressure to significantly increase their salary budgets in the near term," said Sandra McLellan, North America rewards business leader at Willis Towers Watson. "Companies are relying more on variable pay such as annual incentives and discretionary bonuses to recognize and reward their best performers. At the same time, they are rewarding star performers with substantially larger increases while granting minimal increases, if any, to their weakest performers."

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