Contents:

Welcome!
Upcoming Events
What's New
GrandMaster Update

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Welcome!

February 2002 - Welcome to the latest edition of The Payroll News. As always, please feel free to forward this newsletter to your friends and associates who are interested in keeping up with the latest changes in the Payroll industry. Or better yet, subscribe them for free using the Tell Someone About Us link.

Upcoming Events

Listed here are recent changes in legislation on Federal and Provincial levels that may impact your payroll calculations. Please view the following list for changes that affect your region.

FEDERAL:

January 2002 - Canada Pension Plan Payment Rates for January - December 2002 - Canada Pension Plan (CPP) payment rates are adjusted every January if there are increases in the cost of living as measured by the Consumer Price Index. This table (shown on the page at the following link) lists the maximum and average monthly rates for Canada Pension Plan benefits for 2002. (Full Story - 126 Words)

British Columbia:

January 28, 2002 - WCB and hospitality industry focus on safety in the workplace - The Workers' Compensation Board (WCB) of B.C. has announced the availability of a new guide and a series of brochures designed to help prevent injuries to workers in B.C.'s hospitality industry. "We have been working closely with members of the industry to create practical, relevant, health and safety tools based on the specific needs of hospitality employers and workers", said Roberta Ellis, WCB Vice President of Prevention. (Full Story - 648 Words)

Manitoba:

January 8, 2002 - WCB Research Grants to help reduce the risk of workplace injury - Ten research and community service projects of benefit to Manitoba's workers and employers will receive funding from the Community Initiatives and Research Program of the Workers Compensation Board (WCB) of Manitoba in 2002. In total, $966,731 is targeted to projects that emphasize reducing the risk or severity of workplace accidents. These projects will also strive to reduce the impact of injury and disease by helping injured workers return to work sooner. (Full Story - 396Words)

New Brunswick:

January 11, 2002 - Labour force highest ever for New Brunswick - Training and Employment Development Minister Norman McFarlane said today that New Brunswick had its largest labour force ever as it completed the year which helped fuel an increase in the unemployment rate. (Full Story - 219 Words)

Ontario:

January 16, 2002 - Changes in Vacation Pay Reporting - The Employment Standards Act, 2000 (ESA) introduced more flexibility for employers and employees to make their own arrangements about vacation entitlements. For example, employees and employers can now agree, in writing and without the Director of Employment Standards' approval, that an employee will take his or her two-week ESA vacation time entitlement in increments of less than one week. (Full Story - 555 Words)

The latest release of GrandMaster Suite (3.50.09) incorporates a number of changes that make it even easier to use the program and perform your payroll tasks. Some recent changes to the program include:

• When you create a custom report, the description you define for the report will now appear at the top of the page when printed. This title appears in a similar location to the payroll name in other GrandMaster Suite reports.
• Increased security for year-end operations. When working with some year-end menu options, it was possible in certain cases for an unauthorized user to bypass security and view restricted T4 information (view only, they did not have the ability to change the data).
• Description and Earning amounts now appear on the printed cheque stub when performing an Advance Pay (previously, only the Net Pay amounts were showing).
• Addressed a problem where employee WCB amounts were appearing correctly on the Interim Register report, but not appearing in the History Register report.
• When sorting by Category, the Turnover Report was not sorting in the proper order (by new hires, then terminated employees, then by workers). This sorting problem has been corrected.

Stay tuned to CanPay's Product News page to receive the latest changes and release information for all GrandMaster products!

• • •

January 30, 2002 - GrandMaster II for Windows - Our next update will include a number of enhancements and program adjustments based on user feedback. Updated Online Help topics will be included to assist you in various program operations. Please check the CanPay News page for the official release announcement.

In last month's issue, we discussed the tax-relief measures and new TD1 amounts that came into effect as a result of the Federal Budget. This issue outlines the CPP/QPP, EI and WCB rates for 2002 and briefly discusses some year-end procedures for each item.

2002 Canada/Quebec Pension Plan

The Canada Customs and Revenue Agency (CCRA) has released the Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) rates for 2002. The rates are as follows:

Some CPP-related items to consider when preparing your T4s and T4As:

• Ensure that none of your employees have contributed more than the 2001 CPP maximum of $1,496.40.
• All taxable benefits must be included as employment income and the corresponding source deduction totals must be updated. The latter is especially important for individuals below the yearly pensionable (CPP) earnings. Remember that non-cash taxable benefits are not insurable, with the exception of board and lodging benefits provided in the same pay period that an employee receives cash earnings and an employer’s contribution to an employee’s registered retirement savings plan.
• CPP/QPP pensionable earnings (Box 26) on the T4 slip must be completed only if the amount is different from the amount reported in Box 14. If the amounts are the same, you can leave the box blank.
• You must prepare two T4 slips for employees who made contributions to both the CPP and QPP: one showing the QPP deducted and the applicable pensionable earnings and remuneration the employee earned in Quebec, and the other showing the CPP deducted and the applicable pensionable earnings and remuneration the employee earned in any other jurisdiction.
• Ensure that you have not adjusted the CPP contribution amounts you reported on the T4 if you over-deducted employee contributions. The CCRA will credit the employees with the over-contribution when they file their tax return.

Workers’ Compensation Filing Deadlines/Assessable Earnings

Each Canadian province/territory has enacted workers’ compensation legislation, which identifies the industries covered, employers’ responsibilities for paying assessments and responding to workplace accidents, and the conditions under which an employee may claim workers’ compensation benefits.

The following table outlines the different province/territory WCB filing deadlines and rates for 2002:

• When preparing your T4s and T4As, remember that top-up amounts paid to employees receiving WCB benefits are reported on the T4. The actual WCB benefits are not reported on the form. With the exception of Quebec, WCB benefits are reported by the provincial/territorial boards on form T5007, Statement of Benefits.

Employment Insurance

Employment Insurance (EI) contributions are the second deduction following Canada or Quebec Pension Plan contributions. Both employers and employees must pay into EI. There are no age limits for EI premiums. Eligibility for benefits is based on the number of hours an individual works, with their earnings insured from the first dollar earned, up to an annual maximum. The maximum has been set at $39,000 since 1997 and will remain at $39,000 until the average industrial wage reaches that level.

The following table outlines the new EI rates for 2002:

Some EI-related items to consider when preparing your T4s and T4As:

• No employee has contributed more than $877.50 in EI premiums, the 2001 EI maximum.
• Ensure that you have not adjusted the EI premium amounts you reported on the T4 if you over-deducted employee contributions. The CCRA will credit the employees with the over-contribution when they file their tax return.