Canadian Payroll Reporter

7 Canadian HR Reporter, a Thomson Reuters business 2017 Professor and economist Marjorie Griffin Cohen will oversee the work of the commis- sion as chair, with vice-president of the B.C. Business Council Ken Peacock and union leader Ivan Limpright serving as members. The Fair Wages Commission has been directed to work with economists, trade unions, the technology sector, small busi- nesses, youth and others from all regions of the province to put forward a plan to bridge the gap between the minimum wage and the living wage in B.C. Budget proposes new tax rate The British Columbia govern- ment is proposing to create a new income tax rate of 16.8 per cent in 2018 for individuals with a taxable income exceeding $150,000, Finance Minister Car- ole James announced in releas- ing the province's updated 2017 budget on Sept. 11. The budget also proposes to reduce Medical Services Plan (MSP) premiums by 50 per cent for all B.C. residents as of Jan. 1, 2018. With the announcement, the maximum premium for sin- gle individuals would decrease from $75 a month to $37.50. For a couple, the maximum premium would go from $150 per month to $75. In addition, the threshold at which house- holds would be fully exempt from premiums would increase by $2,000. The changes would affect em- ployers with MSP group plans who deduct premiums from em- ployees and remit them to the government and those who pay premiums for their employees as a taxable benefit. The proposal differs from the previous Liberal government's plan, announced in its February budget, which would have re- duced premium rates next year by 50 per cent only for house- holds with annual net incomes of up to $120,000. Under the Liberal plan, resi- dents had to register with the government if they wanted their rates reduced unless they receive premium assistance. No regis- tration would be required for the new rate reduction that James proposed. She also reiterated a previous announcement that the govern- ment plans to abolish MSP pre- miums during its mandate. She said the government would set up a task force to study ways to eliminate premiums and replace their revenues by 2021. James also said the govern- ment is committed to eventually raising the provincial minimum wage rate to $15 an hour and that it will set up a commission to help with this. The budget also proposes to reverse the previous govern- ment's decision to eliminate an education tax credit claimed on a British Columbia Personal Tax Credits Return (TD1BC) next year. Budget documents show that the new government plans to go ahead with the previous govern- ment's proposal to create a non- refundable tax credit for volun- teer firefighters and search and rescue volunteers, beginning with the 2017 tax year. To be eligible for the tax credit, provincial residents would have to provide at least 200 hours of volunteer service to either a vol- unteer fire department, an eli- gible search and rescue organi- zation or a combination of both. The maximum credit amount would be $3,000. Manitoba Security guard minimum wage staying at $12.50 Manitoba is keeping the secu- rity guard minimum wage rate at $12.50 an hour. Under the Employment Stan- dards Regulation, the rate was set to rise to $13.40 on Oct. 1 as part of a plan to phase-in a higher minimum wage rate for security guards who hold a licence issued under The Private Investigators and Security Guards Act. The rate change would have put the security guard rate at $2.25 more per hour than the general minimum wage rate, which rose to $11.15 an hour on Oct. 1. However, in late Septem- ber, the provincial government amended the regulations to re- move the $2.25 requirement and set the rate for licenced security guards at $12.50 as of Oct. 1. Nova Scotia Some tax credits to increase in 2018 The Nova Scotia government is planning to raise some of the non-refundable tax credits claimed on a provincial TD1 next year. Minister of Finance and Trea- sury Board Karen Casey an- nounced the changes when she presented the province's 2017- 2018 budget on Sept. 26. The government had previously ta- bled a budget in April, but called an election before the legislature could pass the proposals. The September budget pro- poses to increase the basic per- sonal amount claimed on a Nova Scotia Personal Tax Credits Re- turn (TD1NS) by up to $3,000 (from $8,481 to $11,481) for in- dividuals with taxable incomes of no more than $75,000. It also proposes to increase the spousal and eligible dependent amounts from $8,481 to $11,481 and to raise the age amount claimed on the form from $4,141 to $5,606. The changes would apply as of Jan. 1, 2018. The budget did not contain any proposals to increase per- sonal income tax rates or the harmonized sales tax rate. Ontario Business coalition urges slowdown on ESA changes A coalition of business groups is calling on the provincial govern- ment to rethink some of its pro- posed employment standards amendments and to slow down the pace of the changes. The Keep Ontario Working Coalition released an econom- ic analysis of Bill 148, the Fair Workplaces, Better Jobs Act, 2017 in late September. The re- port, by the Canadian Centre for Economic Analysis, says the amendments in the bill pose a $23-billion cost challenge to businesses over two years. The bill proposes to make wide-ranging changes to the Employment Standards Act, 2000 and the Labour Relations Act, 1995. The employment standards amendments would take effect in 2018 and 2019. They would include raising the minimum wage to $15 by 2019, giving all employees access to 10 personal emergency leave days per year, with two of the days paid, increasing vacation time from two weeks to three weeks after five years of employ- ment with the same employer, and more stringent rules for em- ployee scheduling. The coalition says the report shows that the amendments will increase business costs and could lead to job losses, which would hurt the province's economy. "Business and government must work together to avoid unintended consequences and protect our most vulnerable," said Karl Baldauf, vice-president of policy and government rela- tions at the Ontario Chamber of Commerce, one of the members of the coalition. Premier Kathleen Wynne has said the government will provide support to farmers and small businesses to help them adjust to the changes, but has not yet pro- vided details. Yukon Income tax amendments tabled The Yukon government has tabled amendments that would harmonize its income tax legis- lation with recent federal chang- es affecting tax credits claimed on a TD1, Personal Tax Credits Return. In this year's federal budget, the government announced that, beginning with the 2017 tax year, it would replace the in- firm dependent credit, caregiver credit and family caregiver tax credit claimed on the TD1 with a new Canada caregiver credit. Bill 10, an Act to Amend the Income Tax Act (2017), which Premier Sandy Silver tabled in the Yukon Legislative Assembly on Oct. 5, would make similar changes to the territorial tax credits claimed on a TD1YT, Yu- kon Personal Tax Credits Return. The bill would also amend the act to stipulate that the territo- ry's pension tax credit may only be claimed by individuals in a tax year if they are resident in Yukon on the last day of that tax year. from FAIR WAGES on page 1 Legislative Roundup CPR | November 2017

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