Canadian Payroll Reporter

2 News EI: • Maximum insurable earnings: $51,300 • Employee premium rate: 1.63 per cent (outside Quebec); 1.27 per cent (in Quebec) • Maximum annual employee premium: $836.19 (outside Quebec); $651.51 (in Quebec) • Employer premium rate: 1.4 times the employee rate unless the employer has a govern- ment-approved reduced pre- mium rate • The government has reduced the waiting period for EI benefits from two weeks to one week, which may impact employers with reduced EI premium rates and those with top-up benefit plans. Income tax: • Federal personal income tax rates remain unchanged from 2017, although due to index- ing of the income tax system, the income thresholds for each rate have changed. The Canada Revenue Agency (CRA) has published updated income thresholds in the Jan. 1, 2017, edition of its Payroll Deductions Formulas for Computer Programs (T4127) and Payroll Deductions Tables (T4032). The guides also in- clude provincial/territorial indexing changes for 2017, where applicable. • The 2017 deduction for the Canada Employment Credit is set at the lesser of $1,178 and the employee's income for the year, multiplied by 15 per cent, the lowest personal income tax rate. LSVCC tax credit phase-out: • Effective Jan. 1, the govern- ment eliminated a tax credit for federally registered la- bour-sponsored venture capi- tal corporations (LSVCCs); however, a federal tax credit for provincially registered LS- VCCs still applies. Provincial updates Alberta The government will increase the province's general minimum wage rate from $12.20 an hour to $13.60 on Oct. 1. Other mini- mum wage changes are listed on the province's Employment Standards website (https:// work.alberta.ca/employment- standards.html). British Columbia Beginning Jan. 1, the government changed the way it sets premium rates for the provincial Medical Services Plan (MSP). It eliminat- ed premiums for children under 19 years of age and set the premi- um rate that an adult couple pays at twice the rate for single adults. The maximum premium rate for a single adult is $75. For a couple, it is $150. The government also de- creased premium rates for resi- dents who receive premium assis- tance. Information on premium assistance rates is on the MSP's website at www2.gov.bc.ca/gov/ content/health/health-drug- coverage/msp. The government is expected to raise provincial minimum wage rates on Sept. 15. Officials say it could rise from $10.85 an hour to $11.25 and the rate for li- quor servers could increase from $9.60 an hour to $10.00. The government is expected to con- firm 2017 rate changes in March. Manitoba As of Jan. 1, the government be- gan indexing the province's per- sonal income tax brackets and the basic personal amount that employees claim on a Manitoba TD1 to changes in the consumer price index. For 2017, Manitoba is using an indexing factor of 1.5 per cent. New Brunswick On Jan. 1, the government im- plemented amendments to the province's Employment Stan- dards Act that affect pay state- ments and employee records. The changes require employers using electronic pay statements to ensure that employees have a way to make a paper copy of them. The amendment applies in addition to other provisions in the act that require employers us- ing electronic statements to pro- vide employees with confidential access to them in the workplace. The amendments also require employers to make and retain records on the date each em- ployee's employment ends. The changes are part of Bill 30, An Act to Amend the Employment Stan- dards Act, which the provincial legislature passed last year. Newfoundland and Labrador The government raised personal income tax rates as of Jan. 1 to 8.7 per cent, 14.5 per cent, 15.8 per cent, 17.3 per cent, and 18.3 per cent. These are also the pro- rated rates that applied for the last six months of 2016 due to rate changes that took effect in July. A new tax implemented last July continues to apply for 2017. The Temporary Deficit Reduc- tion Levy applies to provincial residents whose annual taxable income exceeds $50,000. Em- ployers are required to collect the levy from employees through income tax source deductions. The amount deducted depends on the employee's income. The CRA lists the deduction for- mulas in its T4127 and T4032 guides. The levy will remain in effect until the end of 2019. Nova Scotia On Jan. 1, the government imple- mented rules for employers who wish to give their employees elec- tronic pay statements. The prov- ince's Labour Standards Code now allows employers to use elec- tronic statements as long as they provide their employees with confidential access to the state- ments and a way to make a paper copy of them at the workplace. On Jan. 1, the government also enacted amendments to the code affecting employer re- cords, including requirements for 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. Pre- viously, the code specified only that employers had to keep a record of each employee's wage rate and all pay paid to them. Prince Edward Island On Jan. 1, the government enact- ed amendments to record-keep- ing provisions in the Employ- ment Standards Act passed last year. The changes harmonize rules in Prince Edward Island with those in New Brunswick and Nova Scotia. With the amendments, the act now requires employers to retain records on statutory holiday pay due or paid to an employee, any period during which an employ- ee was on a leave of absence and the reason for the leave, and on dates of and notices for dismiss- als, suspensions and layoffs. Quebec QPP: • Maximum pensionable earn- ings: $55,300 • Employer and employee con- tribution rate: 5.4 per cent • Annual basic exemption: $3,500 • Maximum annual employer and employee contribution: $2,797.20 QPIP: • Maximum insurable earnings: $72,500 • Employee premium rate: 0.548 per cent • Employer premium rate: 0.767 per cent • Maximum annual employee premium: $397.30 • Maximum annual employer premium: $556.08 Income tax: • There are no personal income tax rate changes for 2017, but due to indexing of the income tax system, income thresholds for each rate have changed. Revenu Québec also revised its Source Deductions Return (TP-1015.3-V) to incorporate indexation changes and an increase in the minimum age at which individuals can claim an age amount tax credit from 66 years to 67. The change is part of the government's plan to gradually raise the eligibil- ity age for the tax credit to 70 years by 2020. • On Jan. 1, the government eliminated its mandatory health contribution. Provincial residents aged 18 and over were required to pay the contribu- tion (unless exempted) if their income exceeded a specified threshold. Employers no longer have to deduct the contribution from employee's earnings. Canadian HR Reporter, a Thomson Reuters business 2017 January 2017 | CPR see GOVERNMENT page 5 Watch for increases to provincial minimum wage from WHAT'S NEW on page 1

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