Canadian Payroll Reporter

June 2016

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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7 Canadian HR Reporter, a Thomson Reuters business 2016 CPR | June 2016 Legislative Roundup Effective for 2016 and later, the maximum per-day amount individuals may claim would increase to $11 from $8.25. The maximum for individuals who are the only one in the house- hold claiming the deduction would rise to $22 from $16.50. The bill would also reinstate a 15 per cent tax credit that ap- plies to the purchase of shares of provincially registered labour- sponsored venture capital cor- porations (LSVCCs). The change would apply for 2016 and later. The previous Conservative gov- ernment announced in 2013 that it would phase out the LSVCC tax credit by 2017. Bill C-15 would also imple- ment a proposal announced in last year's budget to exempt some non-resident employers from withholding and remitting income tax source deductions from payments made to qualify- ing non-resident employees who are covered under a tax treaty. The bill also proposes amend- ments to the Employment Insur- ance Act to implement a number of budget proposals, including reducing the waiting period for employment insurance benefits to one week from two. British Columbia Minimum wage going up in B.C. The minimum wage in B.C. is going up to $10.85 from $10.45 on Sept. 15, the provincial gov- ernment recently announced. The rate hike includes a 10 cent increase, based on British Columbia's 2015 consumer price index (CPI), as well as an extra 30 cents to account for strong eco- nomic growth in the province. Last year, the government announced that beginning on Sept. 15 this year, it would in- dex minimum wage rates using increases in the province's CPI for the previous year (rounded to the nearest nickle). With B.C. expected to lead the country in economic growth this year and next, the government decided it could raise minimum wage rates beyond the CPI increase. The government also an- nounced it plans to raise rates in 2017 to take into account the province's CPI (estimated to be 10 cents) and economic growth (30 cents). Effective Sept. 15, 2017, the minimum wage rate will increase to $11.25 an hour. The minimum wage rate for liquor servers is also going up. On Sept. 15, it will increase to $9.60 an hour from $9.20. A year later, it will rise to $10. The government will also increase the daily rate for live- in home-support workers and live-in camp leaders, as well as the monthly rates for resident caretakers and the farm-worker piece rates proportionate to the general minimum hourly wage increases. Manitoba New domestic violence leave standards in effect As of June 1, eligible employees who suffer domestic violence may take a job-protected leave. The province's Legislative As- sembly passed amendments to The Employment Standards Code allowing for the leave earlier this year. The following require- ments apply to the new leave: • The leave consists of two parts: up to 10 days per year and one up to 17 weeks per year. Em- ployees may take the first leave in consecutive or intermittent days as needed, while the 17- week leave must be taken in one unbroken period. • Most of the leave is unpaid, but employers are required to pay up to five days if the em- ployee notifies the employer of which days are to be paid. The amount of pay must equal regular wages for regular hours of work. If hours of work or wages vary, the employer must pay five per cent of total wages, excluding overtime, for the four weeks immediately before the day of leave. • Employers with paid sick leave benefits or other paid leave benefits may require employ- ees to use those for paid days unless a collective agreement provides otherwise. • To be eligible, employees must be victims of domestic vio- lence and be employed for at least 90 days. • Employees may only take the leave to seek medical care (for the employee or the em- ployee's child) caused by the domestic violence; obtain help from a victim services organi- zation; obtain psychological or other professional counsel- ling; temporarily or perma- nently relocate; and seek legal or law enforcement assistance. • When the leave is over, em- ployers must allow employees to return to their job or to a comparable one with at least the same pay and benefits. • Employers are prohibited from dismissing or laying off employees entitled to take the leave solely because they take the leave or intend to take it. • Employers must keep re- cords of the leave, including the dates and number of days taken and the amount paid for each day of paid leave. • Employers are also prohibited from disclosing information unless the employee consents. Exceptions apply where dis- closure is required by law or necessary for individuals to carry out their job duties. More information is avail- able on Manitoba's Employ- ment Standards website at www.gov.mb.ca/labour/stan- dards/doc,domestic_violence_ leave,factsheet.html. Nova Scotia Bill proposes electronic pay statements Proposed changes to the prov- ince's labour standards law would allow employers to pro- vide employees with their pay statements electronically, be- ginning next year. The amendments are part of Bill 168, the Labour Standards Code (amended), which Labour Minister Kelly Regan tabled in the provincial legislature in late April. The bill proposes to harmonize labour standards re- cord-keeping rules in Nova Sco- tia with those in New Brunswick and Prince Edward Island. The amendments would al- low employers to use electronic statements as of Jan. 1 if they provide employees with confi- dential access to the statements and a way to make a paper copy of them at the workplace. Both New Brunswick and P.E.I. per- mit electronic pay statements. Other changes proposed would add more detail to re- cord-keeping provisions. For in- stance, when it comes to records related to pay, the bill would re- quire employers to keep records on gross earnings, the amount and purpose of each deduction and the net amount paid to an employee each pay period. Currently, the code only states employers must keep a record of an employee's wage rate and a record of all pay paid. Ontario New tip rules coming into force Beginning June 10, new employ- ment standards rules in Ontario will regulate when employers may withhold tips or gratu- ities from employees or deduct amounts from the payments. The changes are part of Bill 12, the Protecting Employees' Tips Act, 2015. It received royal assent on Dec. 10, but the gov- ernment delayed implementing it for six months to give employ- ers time to adjust to the change. Once the rules are in force, employers will be prohibited from withholding tips or gra- tuities, deducting amounts or causing employees to return their tips or gratuities unless al- lowed by a law or a court order or because the employer collects and redistributes them among some or all of the employees. Employers, directors and shareholders will also be prohib- ited from sharing in redistribut- ed tips or gratuities unless they regularly do the same work as their employees or as employees of other employers in the same industry who commonly receive or share tips or gratuities. Prince Edward Island Minimum wage rate going up The P.E.I. government increased the minimum wage rate on June 1 to $10.75 from $10.50. The government will raise it again on Oct. 1 to $11 an hour. from FEDERAL on page 1

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