An Educational Service of CanPay Computer Software Ltd.
September 2002

Contents:

Welcome
Upcoming Events
What's New
GrandMaster Updates


Featured Article:

Social Insurance Numbers
Tip of the Month:

Canadian Training Solutions for Workplace Learning

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 If you encounter an out-of-date link, please e-mail the payrollnews@canpay.com.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!

September 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

Event Description
National Payroll Week 2002
Sep. 3 - 6, 2002
National Payroll Week will take place this year during the week of September 3-6, 2001. Check out the NPW website for information about planned events in your region.

Payroll Information Seminars for New Employers
London, Ontario
Mississauga, Ontario
Otttawa, Ontario
Winnipeg, Manitoba
Vancouver, British Columbia

This seminar provides general information on fulfilling your payroll deduction and remittance requirements. Topics include determining and calculating deductions for CPP, EI and income tax.
Payroll Information Seminars for New Employers and Payroll Administrators
Toronto, Ontario
The CCRA will review payroll requirements for deducting, remitting, and reporting CPP, EI and income tax. The HRDC will review the completing of ROEs. The Ontario Ministry of Labour will review the Ontario Employment Standards Act and focus on overtime, vacation and public holiday pay issues for provincially regulated employers.
Level 1 - Basic Introduction to Payroll
Level 2 -
Administering the Payroll Function
Level 3 -
Managing the Complexities of Payroll
Carswell offers dynamic, interactive sessions provided by instructors with have practical payroll and research capabilities. Courses are structured as interactive workshops, not "lecture-style" seminars. Examine real life case studies, focus on the specifics and gain practical knowledge you can put to work right away.

Payroll Administration in Canada
• Sep. 16 - 20, 2002 - Toronto, ON
• Oct. 21 - 25, 2002 - Toronto, ON

The CPA’s Professional Development Series seminars and workshops are available for those seeking accurate, up-to-date knowledge of the payroll function in Canada. Payroll Administration in Canada is an intensive five-day training course created to give you a solid foundation in the basics of Canadian payroll


What's New in Canadian Payroll

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:

August 27, 2002 - On-line registration for businesses - The CCRA and the Government of New Brunswick have streamlined the business registration process by offering a common business identifier, and now offer a one-stop electronic service. This not only cuts red tape, but also makes it easier for businesses to grow and create new jobs," said Elinor Caplan, Minister of National Revenue. The initiative significantly reduces the time and effort needed to start or expand a business. Businesses planning to operate in New Brunswick can now use a single business identification number-the Business Number (BN)-in their transactions with both the federal and provincial governments. (Full Story - 239 Words)

British Columbia:

August 22, 2002 - Working to find balance this Labour Day - Labour Minister Graham Bruce released the following statement today in recognition of Labour Day. "For over 100 years, Labour Day has been enjoyed as the official day we set aside to recognize workers and those who have laboured to create fairness in the workplace. It is important to find a balance between the goals of the employers and the rights of the employees. And, while the labour movement has made significant gains over the years, the challenge to find that balance still exists today". (Full Story - 241 Words)

Manitoba:

August 7, 2002 - Voluntary reduced work week program for Provincial employees - Provincial employees now have the option of taking up to 15 days off without pay as part of a new voluntary reduced work week program, Greg Selinger, minister responsible for the Civil Service Commission, announced today. The voluntary reduced work week program is a pilot project that will allow employees to take up to 15 days off without pay within the current 2002-03 fiscal year which ends March 31, 2003. "Many provincial employees have said they would like the option of taking additional time off, without pay, to attend to family and other matters," Selinger added. "We felt that a voluntary, pilot project provided the best means to gauge employee interest in this type of program, while also evaluating the program’s effect on expenditure management.". (Full Story - 234 Words)

New Brunswick:

August 26, 2002 - Minister's Labour Day message - The following Labour Day message was issued today by Training and Employment Development Minister Norman McFarlane. "I hope all New Brunswickers take the opportunity on Labour Day to reflect on the efforts that have been made to shape our wonderful province. Our people are our first priority, and that is why 'Investing in People' has become a mandate of the Department of Training and Employment Development. Under Greater Opportunity: New Brunswick's Prosperity Plan, we have taken the lead in ensuring that training and employment environments are barrier-free and accessible to all. . (Full Story - 318 Words)

August 27, 2002 - Support Announced for National Payroll Week - Health and Wellness Minister Elvy Robichaud, Minister Responsible for the Office of Human Resources, announced his support and recognition to Canada's eighth annual National Payroll Week which takes place Sept. 3-6. Organized by the Canadian Payroll Association to recognize the efforts of payroll officers throughout the country, the week honours the professionals who ensure payrolls are met on time and with the appropriate deductions. "We have about 53 payroll officers working for the provincial government managing a payroll and pension distribution of more than $800 million each year," Robichaud said "They produce nearly 60,000 T4s and T4As. We couldn't function without their accurate and professional work.". (Full Story - 182 Words)

Newfoundland and Labrador:

August 9, 2002 - Employment numbers show best July since 1989 - According to Statistics Canada’s Labour Force Survey, employment for the province continued to make gains in July. Employment increased 3.2 per cent, or 7,500 jobs last month, as compared to the same time period last year. This has brought year-to-date employment growth to 2.1 per cent. Along with the employment increase, there was a decrease in the unemployment rate which dropped by 1.3 percentage points to 13.8 per cent, as compared to July 2001. This is the lowest unemployment rate for the month of July since 1989. (Full Story - 245 Words)

Northwest Territories:

July 26, 2002 - Direct Deposit Initiative to Provide Improved Customer Service - A new Direct Deposit service, allowing the Government of the Northwest Territories to deposit payments, grants and contributions directly into the bank accounts of businesses, government entities, individuals, organizations and students will provide faster payments and improve cash flow management. "This service will virtually eliminate inconveniences arising from more traditional means of delivering payments,” said Minister of Finance Joe Handley. (Full Story - 243 Words)

Ontario:

August 14, 2002 - Government of Canada provides funding for an Employment Assistance Services project in Ontario - Robert Nault, MP for Kenora-Rainy River, today announced funding of $419,143 through Employment Assistance Services to support a pilot project in Fort Frances. This project is funded through Human Resources Development Canada's Employment Assistance Services. Employment Assistance Services helps unemployed individuals prepare for, obtain and maintain employment, and provides counselling, job search techniques, job placement and labour market information. (Full Story - 320 Words)

August, 2002 - New WCB Payment System - Starting August 6, 2002, chiropractors and physiotherapists can submit invoices to the WSIB online. In the future, all health care professionals registered with the WSIB will be able to submit invoices online. Online billing makes it easier to submit invoices and receive payments faster. Online billing for chiropractors and physiotherapists is the latest step in the rollout of our new payment system. . (Full Story - 205 Words)

Saskatchewan:

August 9, 2002 - Job numbers up once again - Saskatchewan has recorded its third consecutive month of solid growth in job numbers. Statistics Canada figures released today show a 7,100 gain in employment numbers in July over July of last year. That follows jumps of 11,100 in May over the previous May and 12,800 in June over June of 2001. There were 494,200 people employed in the province last month (seasonally unadjusted), the third highest number on record for the month of July. (Full Story - 354 Words)


GrandMaster Updates

The latest release of GrandMaster Suite (3.60.06) 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:

  • In the Schedule Module, all of the defined shifts were not being included when you created an employee schedule report. This problem was only occurring for reports that contained more than 200 shifts. The program has been increased to support 1000 shifts.
  • The Hours Entry dialog box was allowing you to define a distribution table code that did not exist. In turn, this would cause a problem with the Journal Entry report. The program has been modified so that you now receive an error message when you enter an invalid distribution code.
  • Deduction Calculation Code 89 not taking into account taxable benefits. We have adjusted the way calculation code 89 performs its calculation. Previously, the calculation was not taking into account the employee's taxable benefits. This has been corrected.
  • Position not being imported correctly in import process. When importing a .CSV file into a payroll, the program was not importing the Positions data properly. This would result in a payroll with no defined positions (in which case you would have to add them manually). The program has been corrected so that Positions now import properly.
  • Import process carrying forward termination date to other employees. When importing the End Date using the Import into Payroll feature, the end date for a terminated employee was carrying forward to all subsequent imported employees. If the file contained another employee with an end date then this date was also being carried forward. The program has been corrected so that the end dates do not carry forward during the import process.
  • TD1 amounts not being added correctly when using Add Employee Wizard. When setting up a new employee using the Add Employee Wizard, the program was not applying the Provincial TD1 amount automatically. This has been corrected.

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


Social Insurance Numbers

Fall is rapidly approaching and many students have already made their way back to classes for another year. As circumstances dictate, many students will be looking for part-time employment to augment tuition costs and other living expenses. Although most students already have a Social Insurance Number (SIN) you may find a potential employee who still needs to apply for a SIN of their own.

Employer Responsibilities
As an employer, you are responsible for acquiring the correct SIN from each employee. If the employee does not give you his or her SIN, you must be able to show that you made a reasonable effort to obtain it. For example, if you contact an employee by mail to ask for his or her SIN, be sure to record the date of your request and keep a copy of any correspondence that relates to it. The Canada Customs and Revenue Agency (CCRA) considers this to be a reasonable effort. If you do not make a reasonable effort to get a SIN, you may be subject to a penalty of $100 for each failure. Employees must give you their SIN when asked (for purposes of employment). If an employee does not comply with your request, the employee may be subject to a penalty of $100 for each failure.

Under the Canada Pension Plan Regulations, it is also your responsibility to tell your employees how to obtain a SIN if they do not have one. Instruct them to contact their local Human Resources Centre of Canada within three days of the day they start work and provide you with their new SIN once they receive it.

Must all Employees Provide a SIN?
Every person employed in pensionable or insurable employment has to show their SIN card to their employer. Make sure you always use the correct name and number as shown on the employee's SIN card. An incorrect SIN can affect an employee's future CPP benefits if the record of earnings file is not accurate.

Also, if you report an incorrect SIN on a T4 slip that has a pension adjustment (PA) amount, the employee may receive an inaccurate annual RRSP deduction limit statement. In addition, the related information on the employee's Notice of Assessment will be inaccurate.

When an employee has an interruption in earnings, you have to record the correct SIN on a Record of Employment (ROE) for EI purposes (for details on the ROE, see Chapter 3). If you don't, you could be fined up to $2,000, imprisoned for up to six months, or both.

If an employee refuses to give you his or her SIN or refuses to apply for one, you still have to make the deductions. If you cannot obtain a SIN from your employee, you must file your information returns no later than the last day of February. If you do not, you may be subject to a penalty for late filing.

SINs for Non-Residents
If a person, who is not a Canadian citizen or a permanent resident of Canada, applies for a SIN, they will receive a SIN beginning with the number "9." That person will be authorized to work only for a particular employer, and must have a valid employment authorization issued by Citizenship and Immigration Canada.

If you hire a person whom you know is not a Canadian citizen or a permanent resident, make sure that a) the person's SIN begins with the number "9" and b) the person has an employment authorization which states that he or she will work only for you.

Note: Under the ImmigrationAct, only Canadian citizens, permanent residents or persons who have obtained a work permit are authorized to work in Canada. Hiring someone else could lead to penalties under that Act.