Canadian HR Reporter

www.hrreporter.com 17 Alison Rutka is a communications specialist at the Canadian Payroll Association in Toronto. For more information, visit payroll.ca/covid19 or contact InfoLine@payroll.ca. to their workers' compensation board and experienced layoffs should re-examine their payroll estimates to see if revisions are required. If they are needed, it is possible to file an amendment at any point. "Because no one knows the long- term implications of COVID-19, some businesses are waiting to make amendments. As a result, the re-examination of estimates may become part of the year-end process," says Grossett. Some employers also believe that processing an amendment is unnecessary, thinking that workers' compensation boards will decide to reduce or remove penalties for incorrect estimates. Grossett disagrees. "It is still better to amend and refile your estimate, as it could substantially lower the premium payment that is required from your business." Pandemic pay reporting Many provinces introduced additional "pandemic pay" to support front-line workers in fields such as health care and social services. In most provinces, this pay took the form of a top-up to regular wages. Ontario, for example, offered essential workers an additional $4 per hour. Much like the federal programs, pandemic pay programs were implemented quickly to get money flowing to those who needed it, with few conditions and little guidance to those administering payroll. As a result, there is uncertainty as to how it will be reported at year-end. Without additional guidance, the professionals handling payroll must assume that, from the perspective of the Canada Revenue Agency (CRA), additional funds will be treated like regular income, subject to the usual withholdings. Still, many questions remain. "Those handling payroll year-end want to know: Are the additional funds vacationable (that is, are they earnings on which vacation pay is calculated)? Is it necessary to include this additional payment in overtime premiums?" says Tina Beauchamp, payroll compliance advisor on the CPA's InfoLine. "Because these are government-mandated subsidies, there is a high likelihood that employers will be able to make a claim to the government to access rebates to fund additional pandemic pay. Still, the government has not yet provided guidance for employers to address these questions." Changes relating to conditions of employment Traditionally, the payroll department has been required to prepare a T2200, Declaration of Conditions of Employment form (TP64-3 in Quebec) for employees required to work primarily out of their home as a condition of employment. The form allows workers to claim expenses incurred in doing their jobs remotely. These forms are usually prepared by the employer in the year-end period and provided to employees prior to the personal tax filing deadline each year. As a result of the pandemic, many companies have been forced to move their entire workforces to remote settings, greatly increasing the number of employees working from home and making it likely that payroll and HR professionals will have to now fill out these forms for each employee who requests to claim employment expenses. Many payroll and HR professionals worry that the length of the form and volume that will need to be created will present a significant administrative burden. Managing year-end complexity Now, more than ever, payroll professionals need to equip themselves with the resources and information to navigate these complexities. This alone is a feat of will. The answers to these important questions will likely come piece-meal from government. Professionals should take advantage of resources and training such as those offered by the CPA to keep up to date. CHRR

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