Contents:

• Welcome
• What's New
• GrandMaster Update

Welcome!

November 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.

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:

November 2, 2005 - CPP pensionable earnings ceiling for 2006 up to $42,100 - The Canada Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2006 will be $42,100-up from $41,100 in 2005. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada. (Full Story)

November 9, 2005 - Canada Employment Insurance Commission announces Employment Insurance premium rate for 2006 - Acting under new legislative authority that accords the Canada Employment Insurance (EI) Commission an independent role in setting the EI premium rate, the Commission today announced that as of January 1, 2006, the employee rate per $100 of insurable earnings will be reduced by eight cents to $1.87 from its current level of $1.95. The corresponding employer rate will be $2.62, a reduction of 11 cents from its current level of $2.73. (Full Story)

November 1, 2005 - New Information on withholding tax requirements on payments from RRIFs - The Registered Plans Directorate sent a letter to Registered Pension Plan (RPP) clients on November 1, 2005 to alert them to upcoming changes to RPP registration processes. These process changes, the first under the Directorate's Re-engineering Initiative, will come into effect on November 7, 2005. (Full Story)

October 2005 - Employment Insurance (EI) Pilot Project on the Best 14 weeks - Effective October 30, 2005, individuals living in 23 EI economic regions will be able to have their EI benefit rate calculated based on their "best or highest 14 weeks" of insurable earnings in the last 52 weeks. This new way of calculating removes program features which may be discouraging individuals from accepting all available work and will, in some cases, increase benefits for individuals with sporadic work patterns by better reflecting their full-time work patterns. (Full Story)

October 2005 - Maximum Insurable Earnings for 2006 - The Chief Actuary of the HRSDC has released Section 4 of the Employment Insurance Act. This section provides the formula for calculating the maximum insurable earnings for the years 2002 and thereafter and now includes the results of these calculations for the year 2006. (Full Story)

Alberta:

November 17, 2005 - Bill 50 improves workers' compensation system - Newly introduced legislation would add heart attacks to the presumptive coverage available to firefighters through the Workers' Compensation Board (WCB) and confirm the independence of the WCB's medical review panel. Bill 50, the Workers Compensation Amendment Act, 2005 (No. 2), adds heart attacks to the list of medical conditions presumed to be job-related for firefighters if the heart attack occurs within 24 hours of responding to an emergency. The proposed change will streamline the WCB application process for full-time firefighters. (Full Story)

November 2005 - Adult training and employment programs - Alberta Human Resources and Employment provides employment training programs and services to help Albertans prepare for and obtain employment. Training programs include Work Foundations, Training for Work, Self-Employment Programs and more. Visit the Employment and Training section of their website for more information.(Full Story)

British Columbia:

November 4, 2005 - B.C. unemployment rate lowest in 30 years - British Columbia created 14,400 new jobs in October, while the unemployment rate fell to 5.1 per cent, the lowest monthly rate in 30 years. Year-to-date for 2005, B.C.’s economy has generated 65,400 new jobs. Compared to the same period last year, that represents an increase of 3.2 per cent – the strongest rate among the provinces and well above the national rate of 1.4 per cent. (Full Story)

November 15, 2005 - WorkSafeBC quarterly report on workplace fatalities, serious injuries, and near misses - There were 23 reported workplace fatalities in British Columbia between July 1st and September 30th, 2005. In addition, 32 workers were seriously injured and there were 33 near misses that could have resulted in a serious injury or workplace fatality. (Full Story)

October 25, 2005 - WorkSafeBC reports operating surplus and continued low injury rate - WorkSafeBC (the Workers' Compensation Board of British Columbia) is pleased to announce a surplus from operations of $280 million for the year 2004 compared to $155 million in 2003. A continuing low injury rate, stronger than anticipated economic growth and lower claim costs all contributed to this positive result. (Full Story)

October 31, 2005 - Worker's Compensation Act recognizes firefighters’ cancer risk - Changes to the Workers Compensation Act put B.C. among the leaders in recognizing the increased cancer risks faced by professional firefighters, Labour and Citizens’ Services Minister Mike de Jong announced today. De Jong has introduced legislation that recognizes certain cancers as occupational diseases associated with long-term employment as a firefighter. The government informed WorkSafeBC (the Workers’ Compensation Board) of its intent to legislate this amendment on April 11, 2005. (Full Story)

October 19, 2005 - WorkSafeBC announces lower premium rates for 2006 - WorkSafeBC (the Workers' Compensation Board) has announced a 3.6 percent decrease in the overall premium rate for employers for 2006. The reduction reflects recent years’ trends of stable injury rates and lower duration of injuries. Rates for B.C. employers are among the lowest in Canada. The 2006 aggregate base rate will be $1.90 per $100 of assessable payroll, compared to $1.97 in 2005. (Full Story)

Manitoba:

November 2, 2005 - SAFE Work launches new online learning initiative - Health and Safety 101 is an e-course developed to provide workers 24 years old and younger with important health and safety information. Between 2000 and 2004, the time loss injury rate among young workers (age 15-24) dropped by 28%, which is even greater than the 21% decrease among all workers. However, the rate of injuries among males 20-24 is still higher than any other category of the workforce, with 7.8 injuries for every 100 workers. (Full Story)

November 10, 2005 - Province Calls For Input On Employment Standards Review - Labour and Immigration Minister Nancy Allan today announced the review of the Employment Standards Code and invited Manitobans to share their views on issues relating to the code. Areas in which the review will be seeking input from individuals and stakeholders include hours of work and overtime provisions, protecting vulnerable workers, improving work-life balance and strengthening compliance. (Full Story)

October 31, 2005 - WCB releases back injury prevention booklet - The time loss workplace injury rate in Manitoba continued to fall in 2004, according to the Manitoba Workplace Injury and Illness Statistics Report released today. The report, a joint initiative of the Workers Compensation Board of Manitoba (WCB) and the Workplace Safety and Health Division of Manitoba Labour and Immigration (WSHD), goes on to say that the time loss injury rate fell by 21 percent between 2000 and 2004. Of those injuries that are taking place, 59 percent are musculoskeletal injuries (MSI), with the majority being strains and sprains. (Full Story)

October 11, 2005 - Workers compensation provisions to benefit firefighters now in effect - Labour and Immigration Minister Nancy Allan today announced that changes to the Workers Compensation Act which expand the list of presumptive diseases for firefighters and extend this coverage to include volunteer and part-time firefighters have now been fully implemented with the passing of a new regulation. The province recently passed changes to the Workers Compensation Act expanding the list of presumptive injuries for firefighters. (Full Story)

New Brunswick:

December 2, 2005 - 4,500 more New Brunswickers working in November - There were 4,500 more New Brunswickers working in November, Training and Employment Development Minister Margaret-Ann Blaney reported today. The increase accounted for a significant drop in the seasonally adjusted unemployment rate, which had stood at 9.5 per cent. Statistics Canada figures released today show that the seasonally adjusted unemployment rate stood at 9.5 per cent in November. (Full Story)

November 4, 2005 - Labour force increases in October - The labour force grew significantly last month even with the continuing downturn in the manufacturing sector, a strong Canadian dollar and high energy prices which helped contribute to a slight increase in the seasonally adjusted unemployment rate, Training and Employment Development Minister Margaret-Ann Blaney reported today. Statistics Canada reported that the province's labour force grew to stand at 390,000 in October which was up by 2,400 from the previous month. (Full Story)

November 10, 2005 - Saint John Job Fest helps prepare youth for employment - Job Fest, which helps high school students prepare for future job opportunities, will host grade 11 students for the 12th year in a row on Tuesday, Nov. 15. The event will take place thanks in part to a $10,000 contribution from the Department of Training and Employment Development and a partnership with J.D. Irving, Limited. "Through the Employment Assistance Services (EAS) program, we are providing financial assistance for this unique event," said Training and Employment Development Minister Margaret-Ann Blaney. (Full Story)

November 3, 2005 - WHSCC announces rate reduction for 2006 - The Workplace Health, Safety and Compensation Commission (WHSCC) of New Brunswick is pleased to announce a 2.3% percent reduction in the 2006 average assessment rate for registered employers. The average rate will drop from $2.19 per $100 of assessable payroll in 2005, to $2.14, effective January 1st, 2006. (Full Story)

Newfoundland and Labrador:

November 15, 2005 - Workers' Compensation Review Committee announced - Paul Shelley, Minister of Human Resources, Labour and Employment and Minister Responsible for the Workplace Health, Safety and Compensation Commission, announced today the start of the review of the workers' compensation system in Newfoundland and Labrador. The review occurs every five years by law. (Full Story)

November 15, 2005 - Minister announces appointments to board of WHSCC - Paul Shelley, Minister of Human Resources, Labour and Employment and Minister Responsible for the Workplace Health, Safety and Compensation Commission, announced the appointment of a new chairperson and two new members to the commission's board of directors. (Full Story)

November 7, 2005 - Employers and workers: Are you ready for PRIME - Employers throughout Newfoundland and Labrador who are PRIME ready by December 31, 2005, will soon be eligible for a five per cent refund on the average annual assessments they pay to the Workplace Health, Safety and Compensation Commission (the Commission). (Full Story)

October 20, 2005 - Commission to lower average base assessment rate by 14% - As per its five-year strategic plan, the Workplace Health, Safety and Compensation Commission (the Commission) will lower its average base assessment rate in 2006 by 14 per cent, reducing the rate from $3.19 to $2.75. This is the second time since 2000 that the rate set by the Commission has decreased. In 2004, the average base assessment rate decreased by five cents, from $3.24 to $3.19. (Full Story)

Northwest Territories:

November 10, 2005 - ECE Strategic Plan to ‘Build on Success’ of Past Work - The Department of Education, Culture and Employment’s (ECE) Strategic Plan for 2005-2015 has been released. The document sets out the broad direction, goals and priorities of the department for the next decade. One of the program's focuses are a skilled and productive work environment. The plan is is available online at www.ece.gov.nt.ca. (Full Story)

Nova Scotia:

November 3, 2005 - 2004-05 Affirmative Action Report Released - Departments and agencies throughout the provincial government have been working to attract employees who represent more diverse communities to the public service. Twenty-six departments, agencies, boards and commissions have developed plans to become a more diverse workforce and to achieve employment equity in the public service for women, Aboriginal people, persons with disabilities, African Nova Scotians and other racially visible people. (Full Story)

November 22, 2005 - New Youth Apprenticeship Program Boosts Skilled Trades - Young Nova Scotians who are interested in careers in the skilled trades can start their training sooner through a new youth apprenticeship option announced today, Nov. 22, at Queen Elizabeth High School in Halifax. The new, province-wide initiative, called Workit, will help 16- to 19-year-olds explore careers in the skilled trades, and begin working toward their apprenticeship. (Full Story)

Nunavut:

November, 2005 - Teachers, Nunavut Reach Tentative Agreement - The Government of Nunavut and the Federation of Nunavut Teachers have reached a tentative collective agreement. There will be enhancements to parental leave, the dental plan and accidental death and dismemberment insurance. In recognition of the unique nature of the teaching profession, an allowance will be provided to teachers during the life of the agreement. (Full Story)

Ontario:

November 23, 2005 - Canada and Ontario Sign Labour Market Development and Labour Market Partnership Agreements - The Human Resources and Skills Development Minister for Democratic Renewal today signed the LMDA and the LMPA. These agreements will ensure that Ontario workers have access to effective employment programs and services and that Ontario employers have the skilled workers required to sustain and enhance economic growth and prosperity for Ontarians. (Full Story)

November 30, 2005 - Holiday Season Has Three Public Holidays Under Employment Standards Act, 2000 - Many workers will get three public holidays off this holiday season with public holiday pay. Three of eight public holidays under Ontario’s Employment Standards Act, 2000 fall on Christmas Day on December 25, Boxing Day on December 26 and New Year’s Day on January 1. (Full Story)

November 18, 2005 - Revised WSIB Employer Form - The Ontario Workplace and Insurance Board has released an updated form. Effective November 1, 2005 employers are responsible for using the WSIB's new Employer's Report of Injury/Disease. The WSIB says that the form is easier and faster to complete. (Full Story)

Prince Edward Island:

November 14, 2005 - Minister clarifies government's intent on review of Employment Standards Act - Elmer MacFadyen, Minister of Community and Cultural Affairs with responsibility for labour, today released the following statement to clarify government’s intent on the recently announced review of the Employment Standards Act: "As previously announced, a committee has been established to conduct a review of the PEI Employment Standards Act and in so doing, has been asked to take into consideration legislation currently in place in other provinces and report back to government." (Full Story)

November 2005 - New Policy Insider Includes Changes Based on Maintenance
and Development Of Policies - In November 2004 the Workers Compensation Board (WCB) approved policy POL09-01, Maintenance and Development Of Policies. According to this policy, the WCB will use a Policy Review Cycle to ensure all WCB policies are reviewed at least every 60 months. We have now completed the first round of policy review under this process. As a result of this review the WCB has approved numerous changes to the following policies, effective September 22, 2005. (Full Story)

Saskatchewan:

November 23, 2005 - Canada and Saskatchewan sign labour market partnership agreement - The Minister of Finance today announced the signing of the Canada Saskatchewan Labour Market Partnership Agreement (LMPA). Federal funding for the Agreement is worth $109 million and represents new federal funding that comes into effect this year and extends over the next five years. This agreement builds on the strengths of the Premier's Action Plan for the Economy and will help to ensure that Saskatchewan people have the skills they need to take advantage of the opportunities presented in our rapidly growing economy. (Full Story)

November 28, 2005 - New money helps Human Service CBOS attract and retain staff - The province is investing $30.1 million over three years to help human service
Community-Based Organizations (CBOs) attract and retain staff by targeting new
money for wages, benefits and operating costs. Human service CBOs deliver a
wide range of services on behalf of the provincial government, including group
homes, early childhood intervention, employment supports, residential services
for victims of violence, family support, food security, young offender programs and literacy. (Full Story)

Yukon:

December 2, 2005 - Yukon employment standards board to review minimum wage - The Yukon Employment Standards Board has informed the minister responsible for Consumer and Safety Services, Glenn Hart, that they will be consulting on Yukon's minimum wage rate. The Yukon Employment Standards Board is also considering annual increases to the minimum wage to account for the cost of living. Nearly half of all minimum wage workers are between 15 and 19, with more than 75 per cent attending school full or part-time. The prevalence of teenagers and young adults in the minimum wage category reflects the characteristics and demands of minimum wage work. (Full Story)

November 18, 2005 - Fair wage schedule increased following public consultation - A 10.9 percent increase to the Yukon Fair Wage Schedule has been announced by Glenn Hart, minister responsible for Consumer and Safety Services. In addition this increase, annual adjustments will be made to the Yukon's fair wage schedule to reflect the Consumer Price Index to ensure that Yukon workers can maintain their standard of living. The fair wage schedule protects Yukon workers' interests by setting a minimum wage for workers who are employed through Yukon government construction projects. (Full Story)

The current release of GrandMaster Suite (4.10.03) incorporates a number of changes to make it even easier to use the program and perform your payroll tasks. Pending program changes since our last Payroll News issue include:

• Interrupted Close Pay Period recovery Utility - The Administration Module now includes a utility program, UTINTCLO, to simplify the recovery process from an Interrupted Close Pay Period. This utility program will remove any data from the most recent closed pay sequence, re-write the payroll control records and re-generate the Journal entry data. This new utility replaces the prior need to run the UTHRSDEL and UTJEFGEN utility programs. After running this utility program the user simply needs to re-calculate the payroll, confirm the accuracy of the results, and then close the period as normal.
• Addition of HEPP reporting - With this release we have added the option to produce a sociodemographic file for submission to the Health Care Employees Pension Plan (HEPP). The file uses employee specific information as defined in the Payroll Specific Information – Additional Fields (Alpha, Numeric and Date). If you need to submit employee information to HEPP and wish to use this option please contact CanPay Technical Support for assistance.
• Addition of HSCIS v2 reporting - This release includes a new option to produce an HSCIS v2 data file. This file may then be imported into your spreadsheet, manipulated, and then convert the modified file into a flat file for submission to Health BC. If you need to submit employee information to HEABC and wish to use this option please contact CanPay Technical Support for assistance.
• The Bank of Nova Scotia EFT format now supports debit records - The Bank of Nova Scotia Electronic Funds Transfer format has been modified to allow you to include debit account records in your transmission file. This is useful where you have the need to debit your account to cover the employee pay amounts. To use this option you need to define your bank format with a valid debit account. When you create your EFT file a debit record will be written to the file.
• New calculation method added for LTD deduction/benefits - With this release we have added a new LTD deduction/benefit calculation method (134). This method, uses maximums to limit the coverage.
• New calculation method added for indemnity deduction/benefits - With this release we have added a new indemnity deduction/benefit calculation method (135). This method, will reduce the deduction by the amount of the benefit amount.
• ROE Web service modified to comply with new HRSDC standard - HRSDC has changed the format of the ROE Web file from a 27-week to a 53-week format. This release has addressed this change and the ROE Web option will now create a file using the 53-week format as per the HRSDC change.
• Improved ODBC support for Import Pay Hours - With this release we have made modifications to the Import Pay Hours process to allow you to utilize an ODBC Data Source to import your pay information. This change allows you to use a spreadsheet (e.g. Excel) or database (e.g. Access) for data entry, then import the data contained in the file into your payroll using the ODBC option.
• Improvements made to calculation processing time - After the last release there were reports of a significant increase in calculation processing time. The increase was related to accumulator processing and if your payroll makes heavy use of accumulators you might have noticed the increase as well. We have made some program modifications with this release to improve on the calculation efficiency and have managed to shorten the length of calculation time by 20% - 30%. We will continue to search for areas to improve performance on future releases.

• • •

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

Link Opportunity! - If you are a CanPay customer wanting more exposure for your Website, please send us a 50-word description along with a copy of your logo. We'll add you to our Customer Links page and create a link directly to your website. It 's a great way to expose your goods and services to the community. Logos should be a maximum of 160 x 70 pixels and provided in the .gif or .jpg format. Send your e-mails to admin@canpay.com.

For those of you who think that a manager or leader has the world by the tail, think again. It's not an easy job. As a matter of fact, the decisions that managers and leaders make are very complex and typically have long-range implications on the organization and its employees. And most of the decisions arise from having to manage through a tangled web of today's and tomorrow's problems and dilemmas. Some of these dilemmas relate to organizational planning, professional ethics or the intricacies of leading and influencing your employees.

For instance, have you ever realized that leading and influencing another person requires you to be different from them? While we often seek out friendships by looking at commonalities, a leader must deliberately remain somewhat aloof and at a distance so they can effectively and objectively manage differences between people and ideas. In order to accomplish this, a leader not only must know themselves well but must also understand their followers, empathize with each perspective and try to bring their differing views together into an effective solution. This feat requires a high level of emotional stability and a set of well-developed social and interpersonal skills.

Another dilemma leaders' face is how to balance their role in an organization. On one hand, employees often want their senior leaders to get out in front and be highly visible, rallying the troops, meeting customers and increasing organizational profile. As well, when organization change is undertaken, it is often said that the senior leaders have to be on board, highly visible and supportive of the new initiative. A dilemma occurs however, because an organization will put itself at risk if it doesn't develop other leaders at different managerial levels throughout the organization. One person cannot do it all.

What about the dilemma of competing interests within an organization? What is the effective balance ratio of independence versus interdependence? On one hand, we strive to create a sense of personal ownership and pride in each business unit and the role it plays in the organization. But on the other hand, we don't want these business units to be competing against each other for people, priorities or financial resources. Who should have final authority and when?

Another difficult leadership dilemma is managing for the short term versus the long term. While it's well known that most employees tend to think short term (one to three months), leaders must be strategic. They must think long term (five to 10 years) in order for the organization to survive. This dilemma requires a manager to undertake many challenging mental shifts during any one day of decision making. This mental shift is also stressful in and by itself.

Leaders also face the dilemma of creating an effective organizational design. What is the appropriate balance between bureaucracy and economies of scale? Should the organization be centralized or decentralized? When does bureaucracy become ineffective? How will the structure change as the company grows? How can organizational structure leverage your success? What about the dilemma of employee creativity versus discipline? While the leader might appreciate a high level of creativity in the workplace, work must still get done. Organizational policies must be followed and revenue targets must be met. In fact, in order to succeed, creativity must be tempered with a little bit of discipline.

With the increasing customer emphasis on speed and service quality, organizations essentially need their people to consistently work at a 120% productivity level. The dilemma for leaders is how to accomplish this feat without burning out their workers. How can the leader contribute to a healthy balance between work and personal life?

Grooming and selecting new leaders within an organization also creates a dilemma for senior leaders. How can you balance the need for technical skills versus the need for a high level of emotional intelligence? These skills, while both valuable to an organization are quite different. Not everyone is suited to being a leader because leadership requires more people and interpersonal skills as well as long term strategic thinking skills. This dilemma creates the scene for some very tough decisions.

Promotion from within versus hiring an external candidate also creates a dilemma for organizational leaders. When is it best to go internal versus external and why? Organizations with long term employees often want to find "new blood" that will help move change forward. Yet the new incumbent will often face deeply held barriers and beliefs that significantly block change. In many cases, the so called "new blood" will leave within 18 months, defeated and disillusioned.

Setting a compensation policy and practice also creates a dilemma for leaders. On one hand, the organization wants to be able to attract and retain the most highly qualified employee, yet on the other hand, their revenue and budget may not make this possible. How then, does the leader build and retain a high productivity team?

The issue of revenue growth versus cost containment also creates a dilemma for organizational leaders. Leaders are constantly struggling with the dilemma of when to reinvest in the organization so they can increase revenue in the future. The question is what is the payoff and when?

So, if you were someone who thought a manager or leader's job was an easy one, think again. As you have just learned, managerial decisions are very complex because there is so much ambiguity involved. Therefore, the effective leader must carefully assess the pros and cons of each side of the dilemma, evaluate the impact on the organization and make a right decision. However, one final dilemma for organizational leaders is that you may not know whether you were right for quite some time.

Source: Organizational Behaviour and Management, Ivancevich and Matteson, McGraw Hill, 2002, Psychoanalytical Aspects of Leadership Training, J. E. Rosenfeld, MD, Association Executive Online, Jan/Feb, 2001.

Barbara J. Bowes, FCHRP, CMC is president of BowesHR. She can be reached at barb@bowesgroup.com or through our webpage, www.boweshr.com