Contents:

Welcome
Upcoming Events
What's New
GrandMaster Updates

NOTE: This archive references other sites on the World Wide Web. From time to time, an article's link may be moved or deleted from the host site. If you encounter an out-of-date link, please e-mail the payrollnews@canpay.com.

Welcome!

July 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:

June 6, 2002 - Legislation Introduced to Transfer Canada Pension Plan Assets to CPP Investment Board - Legislation was introduced today that will consolidate the investment management of all Canada Pension Plan assets into the CPP Investment Board. This will help to ensure a sound public pension plan for the future. The Chief Actuary of Canada has estimated that these changes are expected to increase returns on CPP assets by approximately $75 billion over 50 years. (Full Story - 322 Words)

June 28, 2002 - Changes to EI Regulations to charge interest on debt resulting from misrepresentation - Human Resources Development Canada (HRDC) announced today that changes to section 56 of Employment Insurance (EI) Regulations to charge interest on new or existing debt resulting only from intentional misrepresentation will be effective on July 1, 2002. (Full Story - 456 Words)

June 4, 2002 - CCRA interest rates for the third calendar quarter - The Canada Customs and Revenue Agency (CCRA) today announced the prescribed interest rates that will apply to amounts owed to the CCRA, and to amounts the CCRA owes to individuals and corporations. The new amounts affect the interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans. (Full Story - 173 Words)

June 2, 2002 - Government of Canada funds project to raise awareness of apprenticeship training - As part of the Government of Canada's commitment to helping Canadians explore career options in skilled trades through apprenticeship training, the Honourable Jane Stewart, Minister of Human Resources Development Canada, today announced funding of $940,995 for the Inventory/Information Project of the Canadian Apprenticeship Forum. (Full Story - 746 Words)

Alberta:

June 17, 2002 - Review of employment programs to help Albertans get better jobs - Through a series of consultations with employers, workers, training providers and adult learners, the government will develop a new Skills Investment Strategy that will set the direction for Alberta's adult training and employment programs. "We need to ensure that we have the right mix of skills preparation, training and upgrading programs to better meet the needs of people and employers across the province," said Alberta Human Resources and Employment Minister Clint Dunford. (Full Story - 398 Words)

June 14, 2002 - Employee Benefit Plans and the Insurance Act - A new consultation paper reviews the issues related to health and income continuance benefit plans provided to Alberta employees by employers. These employee benefit plans are regulated under the Insurance Act, and the paper is seeking written submissions from stakeholders commenting on the issues related to the current system, and how it can be improved. The deadline for submissions is September 30, 2002. (Full Story - 3900 Words)

June 26, 2002 - WCB-Alberta appoints new President and CEO - The Board of Directors of the Workers' Compensation Board (WCB) Alberta named Guy Kerr President and CEO, effective July 1, 2002. "After an extensive search process, we are confident that we have hired the best candidate to lead the WCB-Alberta forward in our continued commitment to be fair, open and accountable to all our stakeholders," said Rick LeLacheur, Board Chair. In addition to his extensive knowledge of WCB-Alberta operations, and insight into the challenges faced by the workers' compensation system, Guy Kerr brings 11 years senior management experience to this appointment. (Full Story - 473 Words)

June 25, 2002 - Health benefits extended to working parents leaving SFI - Parents who leave Supports for Independence (SFI) for employment will soon be eligible for the same health, dental and prescription drug benefits they were receiving on SFI. "Extending health benefits to parents leaving SFI for full-time employment will promote healthier families and help ensure that working continues to be a more attractive option than income support." said Alberta Human Resources and Employment Minister Clint Dunford. (Full Story - 442 Words)

June 4, 2002 - Careers in Motion helps Albertans exploring learning and career options - Albertans will be able to map out their future education and employment goals using "Careers in Motion," a state-of-the-art motor home stocked with written materials and laptop computers connected to the Internet with the latest in cellular phone technology. "AHRE offers a wide range of resources so people can make informed decisions about learning and work," explained Alberta Human Resources and Employment Minister Clint Dunford. (Full Story - 339 Words)

British Columbia:

May 30, 2002 - Changes to WCB appeals target fairness, responsiveness - Bill 56 - the Workers Compensation Amendment Act no. 2, introduced today - reduces the levels of review and appeal of WCB decisions from three to two, creates a new internal review function to improve the quality of decision-making and establishes a new, independent appeal tribunal as the final level of appeal for workers' compensation matters. (Full Story - 379 Words)

Newfoundland and Labrador:

June 4, 2002 - Employability Assistance for People with Disabilities National Report released - Ralph Wiseman, Minister of Human Resources and Employment, has taken part in the release of the Employability Assistance for People with Disabilities (EAPD) National Report. This joint federal-provincial report details programs and services funded under the federal-provincial Employability Assistance for People with Disabilities (EAPD) initiative. The EAPD agreement provides federal funding to cost share a range of provincially delivered programs and services that enhance the labour market participation of working age adults with disabilities by helping them prepare for, attain and maintain employment. (Full Story - 380 Words)

Northwest Territories:

June 26, 2002 - Income Tax Reductions to Take Effect July 1 - Reductions in the NWT’s personal and corporate income tax rates take effect July 1, 2002. Effective July 1, 2002, the general corporate income tax rate will decline from 14 per cent to 12 per cent. The small business rate will decline from 5 per cent to 4 per cent. Source income tax deductions from employees’ wages and salaries will also be adjusted July 1st to reflect increases announced in the February Budget for the Personal Basic Amount, Married and Equivalent-to-Married Amounts, Age Amount and Disability Amount. (Full Story - 224 Words)

Nova Scotia:

June 17, 2002 - Government of Canada announces initiative to help older workers - Rodger Cuzner, MP for Bras d'Or- Cape Breton, and Mark Eyking, MP for Sydney-Victoria today announced $174,000 in funding for a pilot project that will help older workers maintain employment and find new opportunities in the labour market. "Older workers have much to offer in terms of work and life experiences," said Mr. Cuzner. "It's a commitment of the Government of Canada to keep these workers in the labour force so they have the opportunity to put their knowledge and acquired skills to good use.". (Full Story - 433 Words)

June 7, 2002 - Minimum Wage to Increase - Nova Scotia's minimum wage will go up on Oct. 1. The rate will rise 20 cents to $6 an hour. The minimum wage for inexperienced workers is also increasing by 20 cents an hour, to $5.55. Inexperienced workers have less than three months' experience doing the type of work they are hired to do. (Full Story - 174 Words)

Ontario:

June 13, 2002 - Local Society receives Government of Canada funding for Employment Insurance recipients - Bob Kilger, MP for Stormont-Dundas-Charlottenburgh today announced funding of $78,441 for a Job Creation Partnerships project with the Glen Theatre Production Society. "The Government of Canada is pleased to support a project that will not only help meet the employment needs of local residents, but will also benefit the community as a whole." said Kilger. (Full Story - 481 Words)

Saskatchewan:

June 6, 2002 - Making Workers' Compensation Fairer - Legislation introduced today will continue the job of making the workers' compensation system in Saskatchewan fairer and more accountable. Labour Minister Deb Higgins said the amendments result from work done by the Workers' Compensation Act Committee of Review in the fall of 2001. (Full Story - 300 Words)

June 1, 2002 - WCB Transactions Now Online - It’s faster, cheaper and more convenient now to conduct business with the WCB. And it’s secure and confidential. @WCB, the name for the WCB’s range of electronic-business applications, provides another level of service and opportunity for stakeholders to interact with the WCB. (Full Story - 284 Words)

June 17, 2002 - Government of Canada to help employers hire students in Saskatchewan - Minister of Public Works, Ralph Goodale announced, on behalf of the Honourable Jane Stewart, Minister of Human Resources Development Canada, funding of $2,621,061 for Saskatchewan through the Summer Career Placements (SCP) program to help employers hire students for the summer. (Full Story - 445 Words)

June 4, 2002 - Successful year for Small Business Loans Program - Minister of Public Works, Ralph Goodale announced, on behalf of the Honourable Jane Stewart, Minister of Human Resources Development Canada, funding of $2,621,061 for Saskatchewan through the Summer Career Placements (SCP) program to help employers hire students for the summer. (Full Story - 286 Words)

Yukon:

June 17, 2002 - Yukon Workers' Compensation Health and Safety Board Launches Customer Service Project - The Yukon Workers' Compensation Health and Safety Board (YWCHSB) has launched a major project with the goal of completely reviewing and improving its customer services. The project, called Achieving Better Customer Service, is expected to take two years to complete. "We need to deliver services that reflect our customer's values and we need to provide our services in a caring and efficient manner. (Full Story - 763 Words)

The mid-year release of GrandMaster Suite (3.60.00) incorporates a number of changes to make it even easier to use the program and perform your payroll tasks. Recent program changes since our last Payroll News issue include:

• The Hours Entry dialog box had been improved with the addition of option labels and command buttons. These labels now make it easier to navigate in the dialog box.
• Numerous updates to dialog boxes and corresponding online help topics. This includes expanding the descriptions in the online help topics and making the fields and options in these dialog boxes more consistent.
• Adjusted the program to display hours correctly in the Interim Register and Journal Entry reports. Previously, when you entered time for hourly employees into the Enter Hours dialog box and calculated the payroll, the hours would not appear on these reports (even though the program did calculate them correctly).
• Adjusted program calculations to properly evaluate the Quebec Taxable benefits in the event that there is a combination of taxable benefits that are flagged as Federal taxable and Quebec taxable, and Quebec taxable only.
• Stay tuned to CanPay's Product News page to receive the latest changes and release information for all GrandMaster products!

Note: This note is to keep you informed about our July update and to pass on the latest feedback we've received from our valued users. Several customers have reported the following issues:

• If you enter time using the "Auto Enter Default Time" feature, the program will report a fatal subscript out of range error.
• During Hours Entry, if you override the rate of pay, the current payroll calculation will reset the pay rates to the employees' normal rate.

The CanPay Development Team has already created a patch that you can quickly download by choosing this link: http://www.canpay.com/gms_pre_download.html.

The updated release (v3.60.01) is also available for download from our website. The release incorporates a number of other minor changes and product enhancements. Please visit our News page and view the Release Notes for more information.

As a service to Canadian companies and companies that employ Canadians, the Canada Customs and Revenue Agency (CCRA) provides you with payroll deductions tables. These tables contain information to help you calculate CPP contributions, EI premiums, and the amount of federal, provincial, and territorial income tax that you have to deduct for your employees or for retired persons.

Payroll deductions tables are available for each province and territory, and also for employees working outside Canada. If you decide to use these tables, you will need to determine the province or territory of employment for each of your employees. To make things easier, the CCRA also provides the Payroll Deductions Tables in several formats. This means you can employ the method that works best for your organization's specific needs.

Payroll Deductions Tables (T4032) and
Payroll Deductions Supplementary Tables (T4008)
These tables can be used to calculate your employees' payroll deductions, especially if you don't have a computer. If you are using the income tax tables to determine your employees' total tax deductions (federal and provincial ), make sure you look up amounts in the federal tax table and the provincial tax table. You may also have different federal and provincial personal claim amounts and claim codes for an employee.

Payroll deductions tables for all provinces and territories are now available on the CCRA Web site at www.ccra.gc.ca/forms. The tables are placed on the Web site three or more weeks before the printed copies become available.

Tables on Diskette (T4143)
The Tables on Diskette (TOD) are an electronic version of the Payroll Deductions and Supplementary Tables listed above. TOD calculates payroll deductions for all provinces and territories. TOD calculates the deductions for any pay period, for commission income, and for special payments such as bonuses. TOD also calculates the federal, provincial, and territorial income tax, Canada Pension Plan contributions, and Employment Insurance premiums that you withhold from an employee's or pensioner's income.

TOD is available on the CCRA web site at: www.ccra.gc.ca/tod. It is also available on the Electronic Document Distribution System (EDDS). For more information, refer to the CCRA's web page entitled T4032 Payroll Deductions Tables or contact any tax services office or tax centre.

Payroll Deductions Formulas for Computer Programs (T4127)
If you have a computer, you may want to use these formulas instead of the printed tables when calculating your employees' payroll deductions. This publication contains formulas to calculate CPP contributions, EI premiums, and federal, provincial, and territorial income tax amounts (except Quebec provincial tax).

Note: If the computer formulas you want to use are different from the ones in the publication entitled Payroll Deductions Formulas for Computer Programs, you have to submit them to any tax services office or tax centre for approval.

Which provincial or territorial tax tables should you use?
To know which provincial or territorial tax tables to use, you have to determine your employee's province or territory of employment. This depends on whether or not you require your employee to report for work at your place of business.

If the employee reports for work at your place of business, the province or territory of employment is the province or territory where your business is located. To withhold payroll deductions, use the tax tables for that province or territory of employment.

Example 1 - Your head office is in Ontario, but you require your employee to report to your place of business in Manitoba. In this case, use the Manitoba Payroll Deductions Tables.

Example 2 - Your employee lives in Quebec, but you require your employee to report to your place of business in New Brunswick. In this case, use the New Brunswick Payroll Deductions Tables.

If you do not require your employee to report for work at your place of business, the employee's province or territory of employment is the province or territory where your business is located, and from where you pay your employee's salary.

Example - Your employee does not have to report to any of your places of business, but you pay the employee from your office in Quebec. In this case, use the Quebec Payroll Deductions Tables. The employee is not subject to CPP contributions, but could be subject to Quebec Pension Plan (QPP) contributions.

Note: An employee who lives in one province or territory but works in another one may be subject to excessive tax deductions. If so, he or she can ask for a reduction in tax deductions, by obtaining a letter of authority from any tax services office. In some cases an employee who lives in one province or territory but works in another may not have enough tax deducted. If this is the case, the employee should request additional tax deductions at source on Form TD1, Personal Tax Credits Return.