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An Educational Service of CanPay Software Inc.
February 2005

Contents:

• Welcome
• Upcoming Events
• What's New
• GrandMaster Update


Featured Article:

Crisis Advice to HR Managers

Tip of the Month:

Year-End Reporting
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Welcome!

February 2005 - 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

Event Description

Payroll Information Seminars for New Employers/Small Businesses
Various Canadian Locations

This seminar outlines employment relationships to help you determine whether a worker is an employee or self-employed. Other topics include: source deductions, employer responsibilities, assessment and penalties, determining and calculating deductions for Canada Pension Plan contributions, employment insurance premiums and how to maintain proper payroll records.
Payroll Administration in Canada
Various Canadian Locations
This hands-on, comprehensive course provides the basics of Canadian payroll management. If your organization does business in Canada, this course will help you successfully manage your cross-border payroll operations while keeping your company in compliance. Taught by a leading Canadian payroll expert, this class is an opportunity to learn Canadian laws and requirements.
Payroll Administration in Canada (CPA)
Toronto, Ontario
Mississauga, Ontario
Vancouver, BC
Calgary, Alberta
These 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 designed 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:

January 2005 - Employment Insurance T4E income tax receipts to be issued - HRSDC has announced that Employment Insurance T4E income tax receipts will be issued by February 28, 2005. Duplicate T4Es will not be issued until the originals have been mailed. For information concerning your T4E, please call the HRSDC on or after February 28, 2005 using their automated telephone information service at 1 800 206-7218, from 8:30 am to 4:30 pm, and press "0" to speak to a representative. (Full Story)

January 2005 - Canada Pension Plan (CPP) rates for 2005 are now available - Canada Pension Plan rates are adjusted every January if there are increases in the cost of living as measured by the Consumer Price Index. The SDC has posted a table listing the maximum and average monthly rates for Canada Pension Plan benefits for 2005. (Full Story)

January 14, 2005 - Northern development agreement projects approved - Training and employment are the focus of two projects announced today under the Canada-Saskatchewan Northern Development Agreement (NDA). Finance Minister Ralph Goodale and Saskatchewan Northern Affairs Minister Buckley Belanger announced $560,400 in federal-provincial funding to support 2 projects including work experience and training programs. (Full Story)

Alberta:

January 26, 2005 - STEP helps non-profits hire 3,800 students - Thoughts of summer may be a long way off, but now is the time for Alberta's non-profit employers to apply for funding for the 2005 Summer Temporary Employment Program (STEP). The $8 million program will help nearly 3,800 Alberta students get summer jobs. (Full Story)

January 14, 2005 - New guide can help internationally trained immigrants plan their career path in Alberta - A new publication offers numerous tips and resources to help internationally trained and educated immigrants build their work life in Alberta. Working in Alberta - A Guide for Internationally Trained and Educated Immigrants includes information on Alberta occupations, recognition of credentials, job search techniques, resume writing, labour market research and career management tips. (Full Story)

January, 2005 - Employers: It's almost time to file your Annual Return - The Alberta WCB is reminding employers that now is the time to submit their Annual Return online, by fax or phone. This form details the actual earnings paid to their employees for the previous year, along with an estimate of what will be paid out in insurable earnings for the current year. (Full Story)

British Columbia:

January 8, 2005 - December caps another great year for B.C. job growth - With another 17,300 new jobs and the unemployment rate dropping to 6.1 per cent, December marked the end of another year of strong employment growth in B.C., Finance Minister Colin Hansen said today. B.C. accounted for half of all the new jobs created in Canada in December and the monthly unemployment rate fell to its lowest point since June 1981. (Full Story)

Manitoba:

January 26, 2005 -Employment and income assistance Northern Allowance increased by province - The province will increase the Employment and Income Assistance (EIA) northern allowance by an additional 20 per cent for households with low incomes in northern and remote communities, Family Services and Housing Minister Christine Melnick announced today. The increased funding for EIA participants, for example, would provide two parents with two young children with an additional $85.24 per month, a single parent with two children $77.12 per month and a single parent with one child would receive $46.02 per month. (Full Story)

January 28, 2005 - 2nd Annual Report on Workplace Injuries Unveiled - The Workers Compensation Board of Manitoba (WCB) and the Government of Manitoba's Workplace Safety and Health Division (WSHD) unveiled the second annual comprehensive report on workplace injuries and illnesses in Manitoba today, in conjunction with the launch of a SAFE Work ad. (Full Story)

January 7, 2005 - Maximum and Minimum Assessable Earnings - The Manitoba WCB has listed current relevant Maximum and Minimum values for assessable earnings are as follows: 2004 Maximum = $56,310, Minimum = $16,741 -- 2005 Maximum = $58,260, Minimum = $17,320. The Maximum applies to all workers. The Minimum applies only to Directors, Partners or Sole Proprietors who apply for Special Coverage. (Full Story)

New Brunswick:

January 27, 2005 - Employers reminded of March 1 deadline to apply for SEED Program - Employers who are planning to hire a student for the summer have until March 1 to apply for funding through the Student Employment and Experience Development (SEED) program, Training and Employment Development Minister Margaret Ann said today. The SEED program provides students with an opportunity for summer employment at provincial government departments and agencies, municipalities, First Nations offices and non-profit groups. Students must be entering a post-secondary institution in the fall to be eligible. (Full Story)

January 25, 2005 - JOB Start surpasses repatriation target - More than 380 former New Brunswickers have returned to work in the province since the JOB Start Strategy was launched nearly two years ago, Training and Employment Development Minister Margaret-Ann Blaney announced today. Figures as of December 2004 indicate that 382 former New Brunswickers have returned to work in the province as a result of finding employment opportunities through NBJobs.ca and the Virtual Career Fairs. (Full Story)

January 7, 2005 - New Brunswick leads country in employment growth with 11,200 more working - New Brunswick led the country in employment growth on a year over year basis as 11,200 more New Brunswickers were working in December 2004. This fueled a further dip of the province's unemployment rate into single digits as it stood at 9.5 per cent last month, Training and Employment Development Minister Margaret-Ann Blaney reported today. Figures released by Statistics Canada today show there were 357,300 New Brunswickers working in December. This was an increase of 11,200 people employed from the same month last year when the figure stood at 346,100. This translated into a nation- leading 3.2 percentage increase in employment growth over the same time last year. (Full Story)

January 18, 2005 - Province invests nearly $280,000 in specialized training - The provincial government will invest more than a quarter of a million dollars for seven specialized training courses for 100 New Brunswickers, Training and Employment Development Minister Margaret-Ann Blaney announced today. More New Brunswickers will benefit from specialized training to help them secure employment in future construction projects," Blaney said. "We are pleased to contribute up to $279,000 for tuition and training-related assistance through the Training and Skills Development (TSD) program for a number of courses currently taking place, while our partner will also provide a significant contribution." (Full Story)

Newfoundland and Labrador:

January 6, 2005 - Minimum wage earners in Newfoundland and Labrador to see increase in pay - Joan Burke, Minister of Human Resources, Labour and Employment, announced today that government has approved a $1 increase to the province’s minimum wage. The increase will be implemented in four 25 cent increments over a two-year period. (Full Story)

January 4, 2005 - Minister announces appointments to Workplace Health, Safety and Compensation Review Division - Joan Burke, Minister of Human Resources, Labour and Employment, announced today the appointment of Robert Lundrigan as chief review commissioner of the Workplace Health, Safety and Compensation Review Division. Minister Burke is also pleased to announce the appointment of Kimberly Burridge to the position of review commissioner. The appointments are for a five- and three-year term respectively, effective immediately. (Full Story)

January 17, 2005 - PRIME hits the road - The Workplace Health, Safety and Compensation Commission (the Commission) is hitting the road this week on a provincial tour to launch PRIME, a new employer incentive program that promises a financial savings for employers who follow good prevention and return-to-work practices. (Full Story)

Nova Scotia:

January 7, 2005 - Annual Minimum Wage Review Underway - The province has started a review of Nova Scotia's minimum wage rate. The annual review, announced today, Jan. 7, by the Department of Environment and Labour, is being led this year by a new advisory committee. The Minimum Wage Review Committee was established last fall to provide advice to the minister on proposed changes to the province's minimum wage rate. The committee is expected to provide a recommendation to the minister some time in February. A decision on the rate is expected by April. (Full Story)

January 2005 - Clothing and Textile Manufacturing Workshop Set for February 15, 2005 - The Nova Scotia WCB is partnering with concerned members of the Clothing and Textile Manufacturing Industry to combat rising industry rates and bring down premiums. If you're watching your workers' compensation premiums creep up every year; be sure to attend this workshop that brings together experts who will provide you with solutions specific to the clothing and textile manufacturing industry. As a participant, you will learn to prevent workplace injuries, better manage injuries should they occur and reduce workers' compensation premiums. (Full Story)

Ontario:

January 3, 2005 -McGuinty Government Raises Minimum Wage, Helps Lowest-Paid Workers - The McGuinty government is raising Ontario's minimum wage on February 1, 2005 for the second time since taking office, Labour Minister Chris Bentley announced today. The general minimum wage will be raised to $7.45 per hour on February 1, 2005, and there will be annual increases in each of the next two years until it reaches $8 per hour in early 2007. Last February, the rate was raised from $6.85 to $7.15, the first increase in nine years. (Full Story)

January 27, 2005 -McGuinty government ending 60-hour work week - The deadline is approaching for employers to comply with changes to the Employment Standards Act, 2000 that will end the 60-hour work week, Labour Minister Chris Bentley said today. As of March 1, 2005, employers who want their employees to work more than 48 hours a week must meet the requirements of the newly amended law, which include written agreements with their employees and approval from the Ministry of Labour. (Full Story)

January 20, 2005 -Ontario Government Improving Workplace Health And Safety - The Ontario government is moving forward with its plan to cut workplace injuries by 20 per cent over four years by expanding the powers of provincial health and safety inspectors to issue tickets for unsafe workplace practices to include the industrial sector, Labour Minister Chris Bentley announced today. (Full Story)

January 21, 2005 - Media Advisory - McCallum, Bentley to announce joint compliance initiative - John McCallum, Minister of National Revenue, and Chris Bentley, Ontario Minister of Labour, will make an important announcement on a co-operative initiative regarding federal payroll taxes and workplace health and safety insurance premiums. (Full Story)

Saskatchewan:

January 5, 2005 -Saskatchewan businesses to benefit from tax reductions in 2005 - Effective January 1st, 2005, Saskatchewan's small business Corporate Income Tax rate drops from 5.5 per cent to 5 per cent and the Corporation Capital Tax exemption for Saskatchewan-based companies will increase from $17.5 million to $20 million. (Full Story)

January 7, 2005 - Saskatchewan sets two job records to end year - Saskatchewan ended a strong 2004 with two job records, one for the month of December and the other for the year itself. Statistics Canada figures released today show 490,300 people working in the province last month (seasonally unadjusted figures). That beats the old record for December set two years ago and is a jump of 7,800 jobs from last December. (Full Story)

January 25, 2005 - Labour market study presents challenges and opportunities - Saskatchewan will need to increase the number of skilled workers available to the labour market in future years to off-set retiring baby boomers. That is the conclusion of a report by Doug Elliot of Sask Trends Monitor. Saskatchewan Learning commissioned the report, which was released today at the Saskatchewan Centennial Summit. It also highlights the need to improve participation by Aboriginal Peoples in the labour force and increase education levels of workers across the board. (Full Story)


GrandMaster Update

The current release of GrandMaster Suite (4.01.03) 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:

  • T4 Box 22 deduction assignment support added - With this release we have included the option to assign T4 Box 22 or RL-1 Box E to a specific employee deduction. This modification allows you to add the deduction amount for any deduction with a Box 22/Box E allocation to the Income Tax amount when creating your year-end file.
  • T4(04) form added to Print T4 options - We have added the option to print your T4 Statements to the revised CRA T4(FLAT) Statement of Remuneration Paid for 2004. When selecting this option you may adjust your print in the same manner as before by selecting the appropriate Adjustment option.
  • RL-1.L (2004-10) form added to Print RL-1 options - Revenu Québec has modified the RL-1.L-V (2004-10) (French only) Relevé 1 laser - Revenus d'emploi et revenus divers form. With this release we have added support for this revised form. When selecting this option you may adjust your print in the same manner as before by selecting the appropriate Adjustment option.
  • Browse support added to file selection - With this release we have added Browse support to many of the Import, Export and Report - export file options to select an existing file for the operation. This change will allow you to select the file you wish to Import, Export or write your Report data to by selecting the Browse button located in the dialog box. This option has also been added to the Employee Information dialog box, allowing you to browse for a photo (.bmp) file to assign to the employee.
  • STSC and STRP Reports now prorate selected earnings over 10 months - The Saskatchewan Teacher's STSC and STRP Reports have been modified to prorate selected earnings over a 10-month period instead of the prior pay frequency method. This became necessary since most teachers receive pay over 10 months while some opt for a 12-month pay frequency. In order to accurately report, all earning information should be prorated over 10 months regardless of the pay frequency.
  • Name and Address Report sort incorrect - When you printed the Employee Name and Address Report and selected the Start Date as your sort option, the report was not sorting correctly. In actual fact the report was sorting by the employee's Original Start Date (see Employee Information - ID tab). This has been corrected with this release and when you opt to sort by Start Date the report will sort in ascending order based on the Employee Start Date as defined in the Employee's Payroll Specific Information.
  • Pay Statement does not print employee Pay Statement Message - When printing your pay statements the employee Pay Statement Message did not print. This release has corrected this problem. When you select the Employee Message as a printable item on your pay statement and the employee does have a message for the pay sequence that the statements are prepared from, the message will print as defined.
  • Employee Name displayed after adding new payroll - Prior to this release if you had an employee in focus for editing or viewing employee data, then added a new payroll to your database, the employee name would be displayed in the title bar when you accessed the Employee Module in HR. Then if you displayed a list of employees the list would be correctly shown as a blank list. This has been corrected. With this release when you add a new payroll to the database the program will close any selected employee's.
  • XML magnetic media file too large for CRA Internet Filing - If you created an XML file to submit your year-end employee information to the CRA the resulting file could be much larger than the allowable 610kb. This was the result of the XML file incorrectly writing the file as record sequential instead of line sequential. This has been corrected with this release.

Visit CanPay's News page and view the latest Release Notes for a complete listing of program changes.


Crisis Advice to HR Managers

By Dave Crisp

During crises, the priorities are for personal safety and mental health. Unresolved personal emotions that may arise from events can not only disrupt performance at the given moment, but can be sufficiently traumatizing as to cause long term declines in performance and loss of effective staff.

People first and foremost need access to current information, so there may be a need to relax policies to allow more radio or television usage in common rooms and at workstations. Should individuals require a few additional personal telephone calls to reassure themselves of the safety or location of loved ones, that is also a key consideration. It is appropriate to continue some controls provided that you specifically communicate to managers and supervisors that they must exercise judgment where rules would normally be strictly prohibitive of such activities.

Greater judgment and flexibility should be allowed and specifically explained to be allowed at the commencement of a crisis or at escalation points. Clearly local disasters require the greatest flexibility and often specific cancellation of work for one or more individuals or at least the provision of absolute discretion to them to determine whether to continue working or leave to attend to emergency matters. The key question is mental health. What may be a minor crisis for one person may have enormous psychological impact on another.

Crisis is not a time to use the argument, "if I let you, I'll have to let everyone...." Rather it is a time to be prepared to explain that everyone is different and one person needed special support. Others will appreciate that they would want the same options. At the same time, remember basic rules of personal privacy when explaining your reasoning to others. Team members need to know enough to understand that an absent member had a crisis, had to leave or make a phone call and that you provide such support automatically when it is explained and is urgent and appropriate. They do not need to know the details from management, but can be asked to find them out from the individual in question when they return or at an appropriate time.

Of course, it is best to prevent or correct rumors when possible. When letting someone leave it is appropriate to ask whether you should advise others of the reasons. That way the individual can say yes or no, tell them or don't. If it's confidential at least you can tell others they requested the reason not be given out until they have a chance to resolve matters. Even if you can't give a specific detailed reason at the moment you can indicate it was a crisis. Later facts will bear you out and validate your decision to allow flexibility to this one person and not others.

It is critical for supervisors and managers to be reassured that these are the procedures so they aren't concerned about being penalized if they relax rules in reasonable ways. Most people want to do the right things, but they sometimes fear for their own position if they ease up. They need to understand they will get support and approval for acting reasonably. Ideally this will always have been the policy, but an approaching or on-going crisis is a key time to reinforce such principles for anyone new to the workplace or to management responsibilities.

Dave Crisp is a speaker and strategy advisor who provides a practical, five-skill “Effectiveness Frame,” that simplifies Leadership, Personal Development and Human Resources Problem-Solving. He is reachable via his web site at www.CrispStrategies.com