Canadian Payroll Reporter - sample

11 Canadian HR Reporter, a Thomson Reuters business 2018 PM #40065782 News in Brief A look at news, facts and figures shaping the world of payroll professionals B.C. aligns Family Day with rest of Canada › VICTORIA — Beginning next year, the pro- vincial government will move its Family Day statutory holiday from the second Monday in February to the third one, Premier John Horgan recently announced. He said the change would align the day with similar holidays in other parts of Canada and the United States. B.C. has celebrated Family Day since 2013, following consultations that recommended it be on either the second or third Monday of February. The previous Liberal government chose the second Monday, saying a distinct day for the holiday would allow B.C. residents to enjoy local attractions with fewer lineups and less out-of- town traffic. However, Horgan said a common date made more sense for businesses and families. "This gives families an opportunity to schedule and spend more time with loved ones from other provinces," he said. PSAC union encouraged by Phoenix proposals › OTTAWA — A union representing federal civil servants says it is "encouraged" by the govern- ment's budget proposals to fix problems with its Phoenix payroll system. In this year's budget, the government announced investments of $431.4 million over six years to improve Phoenix, including hiring more payroll staff, and $16 million over two years to start developing a new payroll system. The government has been struggling with Phoenix since it began implementing it in 2016. Thousands of workers have been overpaid, underpaid, or not paid at all. In addition, the system has had difficulty processing payroll on time. In February, the Public Service Alliance of Canada (PSAC), as well as other federal public- sector unions, called for Prime Minister Justin Trudeau to deliver a plan to work with employees to rebuild the payroll system so that it pays workers accurately and on time. "The government is finally listening to our demands thanks to the hard work and pressure from our members," said PSAC national president Robyn Benson. "We are encouraged by the commitment to hir(e) compensation advisors — but we will need to hold this government's feet to the fire to ensure they deliver." Benson, however, expressed disappointment that the budget did not exempt federal workers from having to repay the gross amount of overpayments they received last year due to Phoenix problems. Tax rules require employees who repay an overpayment due to an administrative error in a later year to pay back the gross amount. Only the net is required if repayments occur in the same year. PSAC and other unions have urged the government to help employees who need to repay overpayments because of Phoenix. "We object to the inequity of requiring employees to repay more than they received, and are concerned with the likelihood that many cases will not be resolved with a tax return. While your government has taken some steps to address this, the current plan falls substantially short of what is needed to protect our members from undue financial burden from a problem they did not create," the unions said. PSAC also wants the government to compensate workers for time spent dealing with Phoenix problems and the stress the issues have caused. CPP hike could result in more job losses than predicted: Study › TORONTO — The federal government has likely underestimated the negative impact that planned Canada Pension Plan (CPP) increases will have on jobs, a new study says. The study, by the Canadian Federation of Independent Business (CFIB) working with the University of Toronto's Policy and Economic Analysis Program, looked at the effect that coming CPP changes will have on Canada's economy. Between 2019 and 2023, the federal government will gradually raise the CPP contribution rate for employers and employees from 4.95 per cent to 5.95 per cent on earnings up to the yearly maximum pensionable earnings (YMPE). Beginning in 2024, the government will implement a separate contribution rate of four per cent each for employers and employees on pensionable earnings between the YMPE and a new upper earnings limit. In 2024, the new upper earnings limit will be 107 per cent of the YMPE. In 2025, it will rise to 114 per cent. When the government first presented its CPP proposals, the Finance Ministry said the changes would likely result in a 0.04 to 0.07 per cent drop in employment, which it said would be temporary while businesses adjusted to the new requirements. The CFIB study, however, found that the changes will initially mean 64,000 fewer jobs in Canada, which it says is 4.5 times greater than the government's projection. "Employers will naturally respond to increased labour costs by looking for ways to streamline their labour needs, by adding new technologies or focusing hiring on higher- skill(ed) workers. The result is that lower skilled — generally younger workers or new Canadians — are likely once again holding the short end of the employment stick," said Ted Mallett, CFIB chief economist. CFIB said the CPP rate increases would also lead to slower wage growth and larger federal deficits due to higher employment insurance costs because of increased unemployment. It added that the study showed that the federal government could have tempered the negative job impact had it opted to increase only the employee portion of the CPP and not put additional costs on employers. To offset the CPP rate increases, the CFIB said the federal government should lower payroll taxes and provincial governments should find ways to offer tax relief to small business owners. Survey examines chief considerations for jobseekers › MENLO PARK, CALIF. — Other than salary, the most important factors workers consider when weighing job offers are vacation/paid time off, corporate culture, and the potential for career advancement, according to a study. The survey of over 2,700 workers in the United States, by staffing firm Accountemps, found that 26 per cent of respondents rated vacation/paid time off as the most important factor. Twenty-four per cent of respondents cited corporate culture/work environment as the chief factor, while 21 per cent said career advancement potential was the most important consideration. Other factors cited by respondents included the ability to work from home and professional development/training. The survey results revealed differences between men and women when weighing job offers. For female respondents, the top factor was vacation/paid time off (27 per cent), followed by corporate culture/work environment (23 per cent), and potential for career advancement (19 per cent). For men, the chief consideration was corporate culture/work environment (25 per cent), with vacation/paid time off (24 per cent) and potential for career advancement following close behind (24 per cent). The survey results showed that there were also differences in priorities based on age. For those between 18 years and 34 years, the top factor was career advancement potential (30 per cent), while for those aged 35 to 54, it was vacation/paid time off (27 per cent). For workers 55 and older, vacation/paid time off and corporate culture/work environment were tied for top consideration (29 per cent). "In today's employment market, companies need to put their best foot forward when making job offers and, beyond salary, highlight benefits that could entice candidates," said Michael Steinitz, executive director of Accountemps.

• Cover