Canadian Payroll Reporter

4 Canadian HR Reporter, a Thomson Reuters business 2017 PM #40065782 News in Brief A look at news, facts and figures shaping the world of payroll professionals EI premium reduction program rates announced › OTTAWA — The Canada Employment Insurance Commission (CEIC) has announced the 2018 employment insurance (EI) premium rate re- ductions for employers taking part in the federal government's EI Premium Reduction Program. The following EI premium rate reductions, per $100 of insurable earnings, will apply: • category 1 plans: $0.21 • category 2 plans: $0.36 • category 3 plans: $0.35 • category 4 plans: $0.39. The category refers to the group to which Employment and Social Development Canada assigns an employer, based on the type of wage- loss replacement plan the employer has set up. The CEIC based the reductions on information in the 2018 Actuarial Report on the Employment Insurance Premium Rate. The report, by the EI chief actuary, provides forecasts and estimates for calculating EI rates and maximums. It projects the following premium reduction employer multipliers for 2018: • category 1 plans: x 1.273 the employee premium (1.238 for Quebec employees) • category 2 plans: x 1.182 the employee premium (1.122 for Quebec employees) • category 3 plans: x 1.187 the employee premium (1.128 for Quebec employees) • category 4 plans: x 1.167 the employee premium (1.103 for Quebec employees). The CEIC says it will notify employers registered in the plan individually of their 2018 reduced rate as individual premium reductions may be different than the category rates. The premium rate for employers not taking part in the EI Premium Reduction Program is 1.4 times the employee's rate. Manitoba considering health premiums › WINNIPEG — Manitoba's government is asking provincial residents whether they would support the implementation of health-care premiums. In advance of preparing its 2018 budget, the government says it is considering options to deal with the province's deficit and a reduction in federal transfer payments. It is requesting that residents complete an online survey that asks for their views on several issues, including whether the government should impose health-care premiums, with the money raised going directly into health care. The survey asks for feedback on three options: a higher rate premium which would enable the government to enhance health-care services, a lower rate premium which would maintain services and avoid cutbacks, or no premium, which the government says would mean service reductions. The survey does not specify whether health- care premiums would be built into the personal income tax system or collected separately or whether employers would have to deduct and remit the premiums on behalf of their employees. Many Canadians not saving enough: Survey › TORONTO — Many Canadians live paycheque to paycheque and do not save enough for emer- gencies or retirement, says a survey by the Ca- nadian Payroll Association (CPA). The survey of close to 4,766 employees from across Canada found that 47 per cent of those polled said they would have difficulty meeting their financial obligations if their paycheque was delayed by a single week. The numbers are even higher for those in their 30s and 40s (55 per cent and 51 per cent, respectively). The survey also shows that 41 per cent of employees spend all of or more than their net pay. Forty-two per cent of survey respondents said they save five per cent or less of their earnings, below the 10 per cent savings level that financial planning experts generally recommend. In addition, 22 per cent of respondents said they could not come up with $2,000 within a month if an emergency arose. The CPA said the results indicate that the chief reasons for increased spending are higher living costs and unexpected expenses. The survey found that 26 per cent of respondents say earning more is the best way to improve their finances, versus 19 per cent who think spending less is the best way to achieve financial security. "These results underscore the need for spending less and saving more every day for emergencies and for retirement," said Janice MacLellan, CPA's vice-president of operations. "They also show that it is very difficult for people to change or reduce their spending patterns. By paying yourself first through automatic payroll deductions, you are diverting money into a retirement or savings account before you have the opportunity to think about spending it," she said. TTC sues Manulife in fraud investigation › TORONTO — The Toronto Transit Commission (TTC) is suing Manulife Financial as part of its ongoing investigation into an alleged benefits fraud scheme. In a statement of claim filed in the Ontario Superior Court of Justice, the TTC is seeking up to $5 million. It alleges that Manulife did not have appropriate fraud management controls in place nor were there systems in place to detect and analyze unusual trends or patterns that might indicate fraud or abuse, which contributed to the TTC's losses. The allegations have not been proven in court. The claim stems from an investigation the TTC began three years ago after a tip to its hotline for suspected employee misconduct alleged that a health-care products and service provider called Healthy Fit was providing fraudulent receipts to employees so that they could claim health-care expenses. The TTC said the company provided receipts when no products or services were purchased or with inflated purchase amounts. The tip also alleged that Healthy Fit and the employee making improper claims would share the money paid out by Manulife, the TTC's insurer at the time. TTC investigators informed Manulife and police of their findings, and in July 2015, criminal charges were laid against Adam Smith, the owner of Healthy Fit. Smith, who pleaded guilty to two counts of fraud over $5,000, has been sentenced to two years in a federal penitentiary. To date, the TTC says 170 employees have been dismissed, or have resigned or retired to avoid dismissal, and 10 former employees are facing criminal charges. It says it is continuing to interview employees as part of its investigation and if it finds evidence showing the TTC's benefits plan was billed inappropriately, it will demand repayment and the employee will face discipline, including possible dismissal. Feds offering hiring incentives for Phoenix › OTTAWA — The federal government is offering pay and vacation incentives to try to attract and retain compensation advisors to address pay is- sues related to its Phoenix pay system. The incentives include a $4,000 one-time payment, a temporary increase in the overtime rate from time-and-a-half to double time, and the temporary removal of restrictions on how much unused vacation and compensatory leave can be carried over before being automatically paid out. "Compensation advisors continue to work diligently to address pay requests, but more expertise and support is needed to help eliminate the backlog and implement recently signed collective agreements," said Scott Brison, president of the Treasury Board. "This incentive package will help with the recruitment and retention of specialized employees to address and resolve employees' pay issues," he said. The federal government has been struggling with the Phoenix pay system since it began rolling it out last year, adding problems adjusting to the new pay system were compounded by the elimination of hundreds of compensation advisor jobs when the previous government centralized pay operations at a new pay centre in Miramichi, N.B., in 2014. The money to pay for the incentives will come from an additional $142 million that the federal government announced last spring to address issues around Phoenix.

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