Contents:

Welcome
Upcoming Events
What's New
GrandMaster Updates

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Welcome!

August 2003 - 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 Others 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:

July 28, 2003 - Government of Canada funding to help youth gain work experience - Bob Kilger, MP for Stormont-Dundas-Charlottenburgh, today announced Federal Government funding of $346,369 for the province's SHINE program. SHINE will help 80 youth enter the labour market by enabling them to take part in work experience opportunities and employability skill enhancement activities. The project will focus on providing the participants with employment coaching and preparation during and after their work placements, rather than the traditional focus of pre-employment preparation. (Full Story - 410 Words)

June 3, 2003 - Government expands eligibility criteria under the Temporary Fisheries Income (TFI) program - The Federal Government has expanded the eligibility criteria under the TFI program to ensure that qualified workers affected by the fisheries closures can apply for temporary income support in the form of a grant. The $27-million TFI program is administered by HRDC to provide temporary financial assistance to fishers and fish plant workers whose EI benefits expire before the community-based economic development measures announced by the Atlantic Canada Opportunities Agency (ACOA) and Canada Economic Development for Quebec Regions (CED) on April 24, 2003 can be implemented. (Full Story - 1480 Words)

Alberta:

July 11, 2003 - Albertans join Council to help make workplaces safer - Three Albertans representing employers, employees and the public have been invited to share their health and safety knowledge on the Occupational Health and Safety (OHS) Council. The six member OHS council is composed of employer, worker and public representatives. The Council advises the Minister on matters relating to the health and safety of Alberta workplaces. The council also hears appeals of orders given by occupational health and safety officers. (Full Story - 510 Words)

July 2 , 2003 - Protect Your Young Workers - This summer over 150,000 students across Alberta will be working, many at their first job. Special requirements under the Employment Standards Code protect workers under 18 years of age. "Employers need to know the requirements for employing adolescents or young people," said Alberta Human Resources and Employment Minister Clint Dunford. "I cannot think of a more important issue than the well-being of our young people. With many new and often inexperienced workers on our job sites everyone must work safely to prevent workplace incidents, and young workers' educations must not be affected." (Full Story - 443 Words)

British Columbia:

July 30, 2003 - Government of Canada signs Work Sharing agreement - HRDC Minister Jane Stewart announced today a $1,642,914 Work Sharing agreement with Riverside Forest Products Limited that will provide EI benefits to eligible workers who agree to work a temporarily reduced work week. Participating workers will be employed four out of five days per week and will receive Employment Insurance benefits for the fifth day each week. (Full Story - 1,281 Words)

July 25, 2003 - WCB projects average 2004 premium rate to remain unchanged from 2003 - WCB's preliminary 2004 rates are anticipated to be among the lowest in Canada, just six cents above Alberta and substantially below Ontario. The average base rate premium for 2004 will remain virtually unchanged from this year, the Workers' Compensation Board announced today as it released its preliminary 2004 rates. The 2004 average premium is projected to be $2.062 per $100 of assessable payroll, substantially the same as the 2003 rate of $2.059. (Full Story - 448 Words)

June 21, 2003 - Workers’ compensation benefits come into effect - Benefits for workers injured after June 30 will now be based on 90 per cent of the worker’s average net earnings instead of 75 per cent of gross earnings. Wage loss benefits will also cease at age 65. Workers with a permanent disability will receive a lump sum payment as a retirement benefit, which can be used to buy an annuity. The lump sum is an additional amount that WCB sets aside each month, which equals five percent of the monthly WCB benefit, plus interest. The worker may also choose to contribute to this benefit. Workers who receive a Canada Pension Plan disability benefit for the same injury will have their WCB benefit reduced by 50 per cent of their CPP benefit. (Full Story - 276 Words)

Manitoba:

July 23, 2003 - WCB Annual Report shows modest financial surplus - The Workers Compensation Board of Manitoba (WCB) and Manitoba's Workplace Safety and Health Division (WSHD) launched a major SAFE Work campaign today, to draw attention to the need to prevent workplace injuries and deaths and develop a culture of safety in Manitoba. The joint prevention initiative grew out of 62 recommendations of the Minister of Labour's Review Committee on Workplace Safety and Health. (Full Story - 419 Words)

New Brunswick:

July 11, 2003 - Labour force increases - About 6,200 more New Brunswickers were working in June compared with May of this year, Training and Employment Development Minister Margaret-Ann Blaney said today. Statistics Canada figures show New Brunswick's unemployment rate stood at 10.6 per cent, and the labour force grew by 3,100 in June as compared to the same time last year. (Full Story - 268 Words)

Newfoundland and Labrador:

July 9, 2003 - Governments fund organization to offer employment assistance services to unemployed persons with disabilities - The MP for Labrador today announced funding to offer employment assistance services to persons with disabilities in the Labrador City - Wabush area. This one-year project is funded through HRDC's Employment Assistance Services. Employment Assistance Services helps unemployed individuals by providing counselling, job search techniques, job preparedness, and labour market information. (Full Story - 416 Words)

July 11, 2003 - Rising employment numbers in Newfoundland and Labrador - The latest Labour Force Survey from Statistics Canada showed continued employment growth in the province for the month of June. The unemployment rate in June was 13.7 per cent, the lowest unemployment rate for the month of June since 1981. "The results of this survey confirm the value of our policies focussing on the steady growth of employment in Newfoundland and Labrador," said Ralph Wiseman, Minister of Human Resources and Employment. (Full Story - 352 Words)

Nova Scotia:

July 3, 2003 - Northern Cape Breton human resource study announced - Mark Eyking, MP for Sydney-Victoria announced funding for the Northeast Highlands Chamber of Commerce (NHCC) to undertake a 20 week study to examine local labour market supply and demand issues and develop a human resource strategy. "The Government of Canada, through HRDC, has been working with communities across Nova Scotia to examine labour market issues, including identifying skills capacity and addressing gaps," said Mr. Eyking. "A strategic approach to human resource issues, led by the local communities, is having a significant impact on new and existing businesses and the labour force". (Full Story - 700 Words)

Ontario:

July 23, 2003 - Government of Canada funds Kingston employment assistance services - HRDC Minister Jane Stewart annnounced $682,233 in funding to offer employment assistance services in Kingston. Under the project, over 4,000 participants will be helped to seek employment. The project will provide employment counselling services, including career goal development, job search skills, referral to employment interventions such as training, and support services for clients in approved employment-related activities. This project is funded through HRDC's Employment Assistance Services. (Full Story - 316 Words)

July 23, 2003 - Job Creation Partnership program to offer funding - Government funding of up to $248,000 through the Government of Canada's Job Creation Partnership program will go to help support activities that will help unemployed workers enhance their job skills, and ultimately lead them to find and keep work. Funding for Job Creation Partnerships is provided through the Employment Insurance Act. EI claimants receive their regular Income Benefits and/or income support under EI part II - Employment Benefits, which may be increased by the employer to a local prevailing occupational wage rate. (Full Story - 550 Words)

July 10, 2003 - Government of Canada funding to support youth employment - The Government of Canada will provide funding of $118,461 for a project targeted to help youth in Ontario. The Strategy offers a three- pronged approach to addressing youth unemployment issues: it provides work experience opportunities for unemployed or underemployed youth and students; provides access to relevant information on Canada's labour market; and facilitates access to learning. (Full Story - 440 Words)

Saskatchewan:

July 11, 2003 - Province sets all-time record for job numbers - For the first time in Saskatchewan history, employment numbers have surpassed the half million mark. Statistics Canada figures released today show that there were 501,500 people working in Saskatchewan last month (seasonally unadjusted) compared to June 2002. That's an increase of 7,200 over last year's numbers, setting a new record for June and marking the 14th straight month of job growth in the province. (Full Story - 225 Words)

July 31, 2003 - Government of Canada Opportunities Fund project increases participants' employment opportunities - The Federal Government will provide funding for a project to enable five persons with disabilities in Yorkton to acquire a wide range of employment-related abilities. The objective of the Opportunities Fund is to help persons with disabilities prepare for, obtain, and keep employment or self-employment. The Opportunities Fund supports a broad array of employment activities for persons with disabilities who are not eligible for employment benefits under the Employment Insurance Act. (Full Story - 378 Words)

July 25, 2003 - Province links job seekers with employers in Melfort area - The Government of Saskatchewan helped 45 people in the Melfort area obtain employment last year through Canada-Saskatchewan Career and Employment Services, part of the Department of Community Resources and Employment. This program brings together individuals, community based organizations, employers, and government in providing opportunities for unemployed people, and enable the province to link job seekers with employers. (Full Story - 408 Words)

Yukon:

July 29, 2003 - Government of Canada funds project to promote self-employment - HRDC Minister Jane Stewart announced funding of $272,616 for dana Naye Ventures through the Self-Employment Benefit program. Part of the Employment Insurance (EI) Act, the program provides EI-eligible participants with financial support, planning assistance and mentoring while they get their businesses up and running. Financial support in the form of EI Income Benefits is provided for a maximum of 52 weeks. (Full Story - 566 Words)

July 2, 2003 - Young Workers Urged to "Keep All Eyes on Safety" - Yukoners aged 12 to 17 are urged to "Keep all eyes on Safety" during the Yukon Workers' Compensation Health and Safety Board's third annual Young Worker Safety Contest. In July and August, distinctive yellow displays in restaurants, stores and other locations throughout the Yukon will invite young people to enter the contest and learn about safety on the job. Many young Yukoners in the target age group have started their first job or are planning to in the next year or two. (Full Story - 558 Words)

The current release of GrandMaster Suite (3.80.01) 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:

• Alpha amount on pay cheque differs from numeric amount - Alpha amounts from $10.00 to $19.00 were being printed as zero to $9.00.
• Clawback on vacation pay did not show the clawback - When paying vacation pay and the option to "not allow negatives" was set, any amount exceeding the balance in the accumulator is clawed back with a negative amount. The totals were properly updated but the withdrawal or clawback was not being printed on the pay stub or register.
• Transfer from accumulator "A" to "B", left the balance in "A" - When transferring the balance from one accumulator to any other, the amount being transferred was not removed from the first accumulator. Manual adjustments will have to be made to the transfer.
• Payout of accumulator did not Journalize - Autopay out of the accumulators did not generate a journal entry item. The Journal Entry will have to be modified manually.

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

This month's article completes an overview of the four factors that must be examined when determining if an employer-employee relationship exists or if it is a business relationship.

Four Basic Factors
To determine if a worker is an employee or a self-employed individual, and thus if there is an employer-employee relationship or a business relationship, you have to examine and analyze the terms and conditions of the worker's employment as they relate to the following four factors:

1) Control (see last month's issue)
2) Ownership of Tools (see last month's issue)
3) Chance of Profit/Risk of Loss
4) Integration.

Chance of Profit/Risk of Loss
You also have to examine the worker's financial involvement in the working relationship. This involves determining if the worker has the chance of making a profit; risks incurring losses due to bad debts, damage to equipment or materials, or unforeseen delivery delays; and if they cover operating costs.

Generally, in an employer-employee relationship, the employer alone assumes the risk of loss. The employer also generally covers operating costs, which may include office expenses, employee wages and benefits, insurance premiums, and delivery and shipping costs. The employee does not assume any financial risk, and is entitled to his full salary or wages regardless of the financial health of the business.

The income of an employee paid by the piece or on commission does not depend on the losses or profits of the employer's business. The employee is paid the same per-unit amount no matter how many pieces the employer requires him to produce or sell.

In a business relationship, the self-employed individual may make a profit or incur a loss. He also covers operating costs. There is no guarantee of a steady income because the self-employed individual's income depends on the results achieved by the end of the contract.

Integration
If you are not able to determine the nature of the relationship between the employer and the worker with the previous three factors, you have to pursue the analysis. This final factor, integration, should settle the question. Integration must be considered from the point of view of the worker, not the employer.

Where the worker integrates his activities to the commercial activities of the payer, an employer-employee relationship probably exists. The worker is acting on behalf of the employer, he is connected with the employer's business and is dependent on it.

Where the worker integrates the payer's activities to his own commercial activities, a business relationship probably exists. The worker is acting on his own behalf, he is not dependent on the payer's business and he is in business for himself.

Finally
If you have analyzed the four factors and are still unsure of the nature of the relationship between the payer and the worker, you can contact your tax services office to obtain a Ruling Request Form. The CCRA gives you until June 30 of the following year to request a ruling.

Please watch for next month's article will discuss how to obtain a ruling for Canada Pension Plan and Employment Insurance purposes.