Canadian Payroll Reporter

5 Canadian HR Reporter, a Thomson Reuters business 2017 Changing a remittance schedule. Is it allowed? QUESTION: My employer has asked me to contact the Canada Revenue Agency (CRA) about changing the frequency with which we remit source deductions. The CRA has classified us as a threshold 1 accelerated remitter, meaning we send in remittances twice a month. My employer would like to reduce the remittances to once per month. Does the CRA allow employers to request a change in remitting frequency? ANSWER: The CRA determines how frequently an employer remits source de- ductions based on the average amount it withheld in source deductions two calen- dar years ago. This is called an employer's AMWA or average monthly withholding amount. Accelerated remitters can ask the CRA to review their remitting frequency if their AMWA in the previous year changes to such an extent that it would move them to another remitter category if used instead of the amount from two calendar years ago. For threshold 1 remitters, this would ap- ply if their AMWA in the previous calendar year was less than $25,000 (the lower limit for a threshold 1 remitter). For threshold 2 remitters (i.e., those who send in remittances four times a month), this would apply if their AMWA in the previous calendar year was less than $100,000. Regular remitters (i.e., those who send in their remittances monthly) may ask the CRA to change their remittances to quarterly, if they have been sending in remittances for at least 12 months and they meet the condi- tions for being a quarterly remitter (i.e., an AMWA of under $3,000 in the first or sec- ond preceding calendar year and a perfect record for sending in remittances and re- turns in the last 12 months). The CRA will examine the employer's ac- count and notify it in writing of whether it approves the change. CPR | August 2017 ASK AN EXPERT Annie Chong MANAGER OF CARSWELL'S PAYROLL CONSULTING GROUP annie.chong@thomsonsreuters.com | (416) 298-5085 ANSWER: The amount of vacation pay paid to the employee must be included in blocks 15B, Total Insurable Earnings, and 15C, Insurable Earnings by Pay Period on an ROE. Also include the vacation time in block 15A, Total Insurable Hours. In block 11, Last Day for which Paid, record the date of the worker's last day of paid vaca- tion. This date must not be a statutory holiday. ANSWER: While the decision about when an employee takes vacation time mandated under labour standards law is up to the em- ployer, companies have to ensure that they comply with the Employment Standards Act for the timing of vacations. Canada Labour Code: Employers must ensure that employees take vacation re- quired under the code within 10 months of becoming entitled to it. If an employer and an employee cannot agree on when the em- ployee will take the vacation, the employer can decide the date, but the employer must give the employee at least two weeks' notice of when the vacation will begin. Alberta: Employers must ensure that employees take vacation required under the Employment Standards Act within 12 months of becoming entitled to it. If an em- ployer and an employee cannot agree on when the employee will take the vacation, the employer can decide the date, but the employer must give the employee at least two weeks' written notice of when the vaca- tion will begin. British Columbia: Employers must en- sure that employees take vacation required within 12 months of becoming entitled to it. Manitoba: Employers must ensure that employees take vacation required within 10 months of becoming entitled to it. If an employer and an employee cannot agree on when the employee will take the vacation, the employer can decide the date, but the employer must give the employee at least 15 days' notice of the date the vacation is to start. If an employer normally shuts down for an extended period each year, the em- ployer may require its employees to take their annual vacations during that time. New Brunswick: Employers must ensure that employees take vacation required within four months of becoming entitled to it. If an employer and an employee cannot agree on when the employee will take the vacation, the employer can decide the date, but the em- ployer must give the employee at least one week's notice of when the vacation will begin. Newfoundland and Labrador: Employ- ers must ensure that employees take vacation required within 10 months of becoming en- titled to it. Employers must give employees at least two weeks' written notice of the vacation dates, unless the employer and the employee make a different agreement in writing. Northwest Territories: Employers must ensure that employees take vacation re- quired within six months of becoming en- titled to it. Nova Scotia: Employers must ensure that employees take vacation required within 10 months of becoming entitled to it. Employ- ers must give employees at least one week's notice of when the vacation will begin. Nunavut: Employers must ensure that employees take vacation required within 10 months of becoming entitled to it. Ontario: Employers must ensure that employees take vacation required within 10 months of becoming entitled to it. Prince Edward Island: Employers must ensure that employees take vacation re- quired within four months of becoming en- titled to it. Employers must give employees at least one week's notice of when the vaca- tion will begin. Quebec: Employers must ensure that employees take vacation required within 12 months of becoming entitled to it. Employ- ers must give employees at least four weeks' notice of when the vacation will begin. Saskatchewan: Employers must ensure that employees take vacation required un- der the Saskatchewan Employment Act within 12 months of becoming entitled to it. Employers may stipulate that all employ- ees or all employees in part of the workplace must take their vacation at a time when the employer shuts down all or part of the work- place if the employees' vacations last for at least one week. If the employer and the em- ployee (or the trade union representing the employee) cannot agree on vacation timing, the act requires employers to provide at least four weeks' written notice of when the vaca- tion will begin. Yukon: Employers must ensure that em- ployees take vacation required within 10 months of becoming entitled to it. How to report vacation taken before parental leave QUESTION: One of our employees is taking two weeks' paid vacation before starting his parental leave. How do we report this on his Record of Employment (ROE)? Can your employer determine your vacation timing? QUESTION: Can employers require employees to take their vacations only during certain months of the year?

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