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November
2006
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Contents: Featured Article: Hiring Co-Op Students: A Win-Win (Part 2 of 2) Tip of the Month: My Business Account Subscribe to The Payroll News |
November 2006 - 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. 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: November 9, 2006 - Canada Employment Insurance Commission to Reduce EI Premium Rates for 2007 - The Minister of Finance today welcomed the decision by the independent Canada Employment Insurance Commission to reduce employment insurance (EI) premium rates for 2007. For employees, the premium rate will fall to $1.80 from its current level of $1.87 per $100 of insurable earnings, effective January 1, 2007. The rate paid by employers will be reduced to $2.52 from $2.62 per $100 of insurable earnings. (Full Story) November 6, 2006 - Canada Employment Insurance Commission sets Employment Insurance premium rate for 2007 - The Canada Employment Insurance (EI) Commission today announced that as of January 1, 2007, the employee rate per $100 of insurable earnings will be adjusted to $1.80, a reduction of 7 cents from its current level of $1.87. The corresponding employer rate will be adjusted to $2.52, a reduction of 10 cents from its current level of $2.62. (Full Story) November 2, 2006 - CPP pensionable earnings ceiling for 2007 up to $43,700 - The Canada Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2007 will be $43,700-up from $42,100 in 2006. 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. Contributors who earn more than $43,700 in 2007 are not required or permitted to make additional contributions to the CPP. (Full Story) October, 2006 - Phase out of Record of Employment Laser Print (ROE Laser) - Service Canada is notifying employers and payroll professionals that use the laser printed version of the Record of Employment (ROE) about the phase-out of the ROE Laser product. The software is not compatible with newer computer platforms and soon the manufacturer will no longer support the equipment used for ROE Laser. Service Canada is encouraging employers to convert to the comparable and improved Internet based service called ROE Web. (Full Story) October 26, 2006 - Increase in the flat rate meal expense deduction for employees in the transportation sector - The Canada Revenue Agency has increased the flat rates that some employees in the transportation sector can use to calculate meal-expense deductions on their tax returns. Effective with their 2006 tax returns, qualifying transport employees can use the flat rate of $17 per meal up to a maximum of $51 a day when claiming meal deductions. Transport employees travelling and incurring meal expenses in the United States may now use the rate of US$17 per meal up to a maximum of US$51 a day, converted to Canadian dollars. (Full Story) October 17, 2006 - Targeted Initiative for Older Workers - On October 17th, 2006, the Honourable Diane Finley announced that the Government of Canada will make available up to $70 million for the Targeted Initiative for Older Workers. This two year initiative will help unemployed older workers in communities experiencing ongoing high unemployment and/or with a high reliance on a single industry affected by downsizing. Projects will be designed to improve the employability of participants from 55 to 64 years of age, and may assist them through activities such as prior learning assessment, skills upgrading, and experience in new fields of work. (Full Story) October 6, 2006 - Payroll Deductions Online Calculator - Starting January 1, 2007, the CRA will begin offering a new Payroll Deductions Online Calculator. It will have the same features as the CD version of the tables and be compatible with all users’ operating systems. By offering the calculator, the CRA hopes to reduce printing and mailing costs, thus saving public funds. (Full Story) September 2006 - CRA Announces My Business Account - The Canada Revenue Agency (CRA) has expanded its suite of e-services to provide business owners with convenient and secure on-line access to their personalized business account information through a new on-line service called My Business Account. (Full Story) Alberta: November 2, 2006 - New services help an employer understand the rules on bringing a foreign worker to Alberta - Employers considering hiring a foreign worker now have more help while navigating federal and provincial government immigration processes, thanks to several new and expanded Alberta Economic Development initiatives. "While these new provincial government initiatives will help Alberta employers, the federal government still controls the immigration paperwork process. Bringing a foreign worker to Alberta is not easy but the new services will help guide employers along the way," said Economic Development Minister Clint Dunford. (Full Story) September 27, 2006 - New career-focused courses open doors for students - This year, schools are offering new career-focused courses in Grades 8 to 12, in an effort to keep students in school and better prepare them for the workforce or further education and training. Alberta's new Knowledge and Employability (KE) courses will help students build skills in areas ranging from construction to business services, or mathematics to English language arts. The courses are intended to teach students practical skills and enhance their academic and occupational abilities. (Full Story) September 20, 2006 - Competitors share creative ideas for labour shortages - More than 200 industry, education, labour and government representatives attending a one-day Ministers' symposium put aside competitive differences to share their tactics and approaches to resolving labour and skills shortages. "It's going to take a lot of hard work and sustained effort to address Alberta's skill and labour shortages," said Heather Douglas, Calgary Chamber of Commerce President and CEO, who moderated the day's event. "This symposium provided Alberta businesses with an opportunity to learn and discover new, innovative, and creative ways to develop their workforce." (Full Story) September 20, 2006 - Government enhances corporate dividend tax credit and small business income threshold - The Alberta government is enhancing the province's dividend tax credit and boosting the small business income threshold to encourage greater investment and help ensure Alberta remains the place to do business. The Government of Alberta has taken steps in the past several years to benefit small businesses, cutting the small business tax rate in half to three from six per cent, and doubling the small business income threshold to $400,000. The amount of income eligible for the small business deduction will be increased further to $500,000, phased in by 2009. (Full Story) British Columbia: October 31, 2006 - Province expands eligibility for compassionate leave - The Province is expanding the range of family relationships eligible for job protection during compassionate care leave, Labour and Citizens’ Services Minister Olga Ilich announced today. Under the Employment Standards Act, an employee who requests time away from work to provide care or support for a terminally-ill loved one is eligible for up to eight weeks of unpaid leave. The period of leave would be taken in periods of not less than one week. (Full Story) October 26, 2006 - 10 by 10 challenge embraces the workable - All British Columbians will benefit from having more people with disabilities in the workplace and that’s why the government is issuing a provincewide challenge to increase their employment by 10 per cent by 2010, Employment and Income Assistance Minister Claude Richmond said today. The 10 by 10 Challenge hopes to increase B.C.’s current employment of persons with disabilities from 132,000 in 2006 to 145,000 in 2010. (Full Story) October 16, 2006 - British Columbia leads small business growth in Canada - Employment in British Columbia’s booming small business sector grew at more than four times the national average last year according to the Small Business Profile 2006. It is estimated that there are more than one million British Columbians working in small businesses. The number of small businesses operating in the province increased for the fourth consecutive year, up 1.7 per cent from 2004. (Full Story) October 12, 2006 - WorkSafeBC announces lower average premium rates for 2007 - WorkSafeBC (the Workers’ Compensation Board) has announced a 10.8 percent decrease in the average base rate for employers in 2007. While the reduction reflects recent years’ trends of stable injury rates and lower duration of injuries, it is largely due to very positive investment returns that enable WorkSafeBC to maintain lower premium rates for employers. The 2007 average published base rate will be $1.69 per $100 of assessable payroll, compared to $1.90 in 2006. (Full Story) October 4, 2006 - B.C. implements "Grant’s Law" to protect workers - Labour and Citizens’ Services Minister Olga Ilich today announced a mandatory pre-payment system at service stations in urban areas will be implemented to help protect employees who work late at night. Government is also calling on WorkSafeBC to accelerate plans for regulations that specifically address the orientation and training needs of new workers, including those at service stations. This will ensure that every new worker and returning worker is given health and safety orientation and training specific to their workplace. (Full Story) October 2, 2006 - WorkSafeBC's Teleclaim to improve service for injured workers - Vancouver Island residents who are injured at work can now file their claims for time loss more quickly and easily, WorkSafeBC announced today. On Monday, October 2, WorkSafeBC introduced Teleclaim, a new service centre that injured workers can call to report injuries and receive personal assistance to help them with their recovery and return to work. Until now, to report injuries, B.C. workers completed an application for compensation and submitted it to WorkSafeBC — a practice used in most provincial workers' compensation systems in Canada. (Full Story) Manitoba: November 4, 2006 - Province provides funding to Career Trek - The Manitoba government has committed ongoing funding of $175,000 to Career Trek Inc. to support innovative programs that encourage children to complete high school and pursue post-secondary education, Advanced Education and Literacy Minister Diane McGifford announced today. Participants in the Career Trek program devote 20 Saturdays between October and April to classes at the University of Manitoba, the University of Winnipeg and Red River College. A parent component also involves families exploring career options and the advantages of higher learning. (Full Story) October 31, 2006 - New workplace safety and health regulations announced by provincial government - Labour and Immigration Minister Nancy Allan today announced modernized workplace safety and health regulations to take effect Feb. 1. The enactment of these changes completes the government’s plan, initiated in 2002, to update Manitoba’s legislative framework for occupational safety and health with significant changes to the Workplace Safety and Health Act, said Allan. The minister said the new regulations are the product of an extensive four-year review and consultation process with stakeholders including employer, employee and technical representatives. (Full Story) October 16, 2006 - WCB Offers Rate Reduction to Accredited Construction Firms - The Workers Compensation Board of Manitoba today announced an important prevention initiative that offers a financial incentive to construction firms that encourage safety in their workplace by implementing an accredited safety program. The Incentive Plan in Construction is a pilot program that includes a five percent reduction in WCB assessment rates for construction firms that earn safety association accreditation, an important step in decreasing workplace injuries. (Full Story) New Brunswick: November 6, 2006 - Workplace Health, Safety and Compensation Commission of New Brunswick - The Workplace Health, Safety and Compensation Commission (WHSCC) of New Brunswick announced today that, for the third time in as many years, it has reduced its average assessment rate. Effective January 1, 2007, the average rate will drop from $2.14 per $100 of assessable payroll in 2006, to $2.10. This rate reduction will see assessed premium amounts for 7,200 New Brunswick employers either drop or remain stable in 2007, and represents the lowest average assessment rate in Atlantic Canada. (Full Story - PDF) November 3, 2006 - Unemployment drops to 8.1 per cent as 5,400 more New Brunswickers working - There were 5,400 more people working in October as compared to last year, and the unemployment rate stood at 8.1 per cent. Postsecondary Education, Training and Labour Minister Ed Doherty reported today on the latest Labour Force Survey provided by Statistics Canada. He added that New Brunswick ranked eighth in labour force growth in the country in 2005 and when comparing 2005 to 2004, New Brunswick's year-over-year performance was significantly lower than what occurred nationally. (Full Story) October 10, 2006 - Province signs contract with Canadian Union of Public Employees - A new five-year collective agreement was officially signed today between Local 1190 of the CUPE and the provincial government, Human Resources Minister Hédard Albert announced today. The agreement covers about 1,780 employees in 10 departments, including Transportation, Natural Resources, and Tourism and Parks. About 80 per cent are employed in Transportation in positions such as equipment operator, bridge and construction worker, and mechanic. (Full Story) Newfoundland and Labrador: November 15, 2006 - Client Service Office designed to ensure quality service - The Workplace Health, Safety and Compensation Commission is pleased to announce that it will undertake a six-month pilot project on client service. "A Client Service Office will be established to receive, investigate and resolve issues related to client service," says Joe O’Neill, Chief Executive Officer (acting). "Through this process, we will identify trends and systemic concerns and recommend improvements for client service, while maintaining the privacy and confidentiality of our clients and staff." (Full Story) November 10, 2006 - Minister Comments on WHSC Act Statutory Review - Government is moving forward with a comprehensive review process of workers compensation. The Honourable Paul Shelley, Minister of Human Resources, Labour and Employment, today provided an update on the status of the review and the next steps regarding Finding the Balance: The Report of the 2006 Statutory Review Committee on the Workplace Health, Safety and Compensation Act. (Full Story) November 2, 2006 - Career and Employment Services Open in St. John’s - Today marks the beginning of a new era in the delivery of career and employment services in Newfoundland and Labrador. The Department of Human Resources, Labour and Employment (Avalon Region) officially opened the Career Information Resource Centre (CIRC) at its Regatta Plaza facility in St. John’s. (Full Story) October 2006 - News for Employers from the WHSCC - The Workplace Health, Safety and Compensation Commission have posted a number of items useful for employers in Newfoundland and Labrador including news about the recent launch of their web portal, PRIME Audits and PRIME Practice Incentive Program. (Full Story) Northwest Territories: October 2, 2006 - WCB Announces 2006 Assessment Rates - The Workers’ Compensation Board of the Northwest Territories and Nunavut has announced the average assessment rate for 2006 will not change and will remain $1.87 per $100 of assessable payroll. There has been an increase to the Year’s Maximum Insurable Remuneration (YMIR) from $66,500 to $67,500. (Full Story - PDF) Nova Scotia: November 16, 2006 - WCB increases travel rates and meal allowances for workers - The Nova Scotia WCB Board of Directors has approved changes to the several WCB policies. The changes are effective November 1, 2006. These include changes to 2.1.1R3 (Workers’ Travel Expenses for Health Care - rates increase from 34 cents to 38.85 cents per kilometer) and 4.2.4R1 (Workers’ Travel Expenses for Vocational Rehabilitation - Meal allowance rates increase). (Full Story) November 6, 2006 - WCB issues Chronic Pain Update for October - The WCB is committed to providing regular updates about progress with chronic pain claims. Each month, they provide updates on the WCB website and on their toll-free recorded phone message (1 866 365 4400). Their goal is to complete this work as quickly as possible. The Supreme Court of Canada ruled that workers with chronic pain must be individually assessed to determine if they are eligible to receive workers' compensation benefits for chronic pain. (Full Story) October 18, 2006 - WCB issues retroactive Consumer Price Index (CPI) payments - Phase 1 of the WCB’s annual CPI payment process was completed in June and it is now processing retroactive CPI payments (Phase 2). This separate process occurs to ensure that clients who received retroactive benefits due to a rate change or appeal receive their CPI entitlement. Retroactive cheques will include CPI up to December 31, 2005. (Full Story) October 12, 2006 - Faster, Better Process for Labour Complaints - Unionized workers, unions, and employers in Nova Scotia will now have faster and more affordable means to resolve labour complaints, thanks to provisions in the Trade Union Act that took effect on Oct. 1. "Good labour relations are everyone's business," said Len Goucher, acting Minister of Environment and Labour. "Faster and more affordable resolution of workplace disputes leads to improved labour relations and economic stability in the province." (Full Story) October 5, 2006 - Nova Scotia Workers Remain Protected - Nova Scotia retail workers affected by changes to retail business openings will continue to be protected from having to work on Sundays and certain holidays. The decision to remove restrictions on retail business openings does not affect changes made to the Labour Standards Code proclaimed on July 19. Those changes provide workers in some sectors the right to refuse to work on Sundays and certain holidays. (Full Story) Ontario: November 14, 2006 - Mandatory Retirement Ends Dec. 12, 2006 - Ontarians will soon have the freedom to choose when to retire, as the end of mandatory retirement in Ontario for most Ontario employees is less than a month away, Labour Minister Steve Peters said today. When the legislation takes effect, it will amend the Ontario Human Rights Code to protect people aged 65 and over from age discrimination for most employment purposes. The legislation also amends a variety of other statutes that have provisions connected to mandatory retirement. (Full Story) November 2, 2006 - McGuinty Government Teams up with Colleges to Help Small Businesses - The McGuinty government is working with community colleges to help small businesses understand Ontario's Employment Standards Act, Labour Minister Steve Peters announced today. "Our government is on the side of small businesses and all employers working to build a stronger Ontario," Peters said. "Fair treatment of employees results in greater productivity, benefiting both businesses and the people of Ontario." (Full Story) October 26, 2006 - McGuinty Government Expands Family Medical Leave - The McGuinty government is making more Ontarians eligible for Family Medical Leave effective immediately, Labour Minister Steve Peters announced today. "Now, Ontario's Family Medical Leave allows employees to care for additional family members and people who are like family," Peters said. "We're on the side of employees who need assurance that while they are caring for a gravely ill loved one, their jobs will be protected." (Full Story) October 13, 2006 - Independent Audit Confirms WSIB On The Right Track - A follow-up audit of the Workplace Safety and Insurance Board (WSIB) shows significant progress in improving administrative and financial management, Minister of Labour Steve Peters announced today. "The Workplace Safety and Insurance Board is the bedrock of our workplace health and safety system," said Peters. "It is vital that it operates as efficiently and effectively as possible in order to provide the support and dignity that Ontario workers deserve. That is why our government called for an independent audit." (Full Story) Prince Edward Island: October 12, 2006 - Premier announces new tax incentives - Premier Pat Binns today announced a comprehensive tax incentive package for the bioscience industry in Prince Edward Island that will encourage existing companies to expand and focus on commercial opportunities in the industry as well as help attract new companies to the province. Under this new tax incentive program, bioscience companies of more than 10 employees and a $750,000 annual payroll are eligible to receive a full rebate on their provincial corporate income taxes for up to 10 years. Premier Binns said money rebated to bioscience companies will be reinvested, helping to create more jobs and opportunities in the sector. (Full Story) October 10, 2006 - New centre for labour force innovation to help meet changing labour market needs - Now more than ever, Prince Edward Island will be positioned to meet the labour market needs of the new economy thanks to the Centre for Labour Force Innovation, which celebrated its official opening today at Holland College. With this new centre, Holland College will develop specialized training programs and services designed to meet the needs of emerging sectors like bioscience. (Full Story) Saskatchewan: November 6, 2006 - Government introduces legislation to end mandatory retirement - The government of Saskatchewan is proposing legislative amendments which would end mandatory retirement and would give our older citizens the ability to choose whether to retire or to continue to work beyond the age of 65. The Saskatchewan Human Rights Code Amendment Act, 2006 responds to the concerns of those members of our society who object to being forced to retire before they are ready by removing the age definition that permits mandatory retirement policies. (Full Story) November 3, 2006 - Job growth soars, lowest unemployment rate for October since 1979 - Saskatchewan's red-hot economy has helped create yet another jobs record for the province. Statistics Canada figures released today show 501,700 people were working in Saskatchewan in October (seasonally unadjusted figure). That's up 21,800 over the figure for October 2005 and beats by 16,200 the old record for October set two years ago. October's figures also represented the seventh straight month of record job numbers for the province. (Full Story) November 2, 2006 - Province Cuts Small Business Taxes - Saskatchewan has introduced a cut to small business taxes. Effective January 1, 2007 the Government is lowering the small business corporate income tax rate from 5 per cent to 4.5 per cent. Effective for the 2007 taxation year, the DTC rate on dividends received from small businesses will drop from 8 per cent to 6 per cent to reflect Saskatchewan's lower small business corporate income tax rate. (Full Story) November 1, 2006 - 2007 Preliminary WCB Rates by Industry - The Saskatchewan Workers' Compensation Board (WCB) has announced the 2007 preliminary rates used to collects premiums from employers to cover the cost of work-related injuries. Premiums are based on the assessable earnings of all workers, up to the maximum assessable amount per worker. The WCB uses an actuarial-based rate setting model to establish annual premium rates for each industry code. The model looks at historical costs and spending patterns and uses this information to project future costs and premium requirements. (Full Story) October 6, 2006 - Highest September for Jobs - New figures out today show the best September on record for the number of people working in Saskatchewan. Statistics Canada figures released today show that 499,100 people were employed in the province last month (seasonally unadjusted figure). That's an increase of 18,900 jobs over the figure for September 2005 and tops by 16,300 the old record for September set two years ago. (Full Story) GrandMaster Update The current release of GrandMaster Suite (5.23) incorporates a number of changes to make it even easier to use the program and perform your payroll tasks. Program changes since our last Payroll News issue include:
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. Hiring
Co-op Students: A Win-Win (Part 2 of 2) Your Employers usually look for someone with maturity combined with fresh ideas gained from the student's academic program. It is very competitive amongst employers vying for the same pool of top students. Often there are more companies offering placements than choice co-ops students available. Interviewing on campus and ranking your selection makes sense. Remember students do the same with their employer choices. If you are lucky your number one pick will chose you. In the ideal world, your co-op will contribute creative ideas and bring new energy to your business. A co-op student can also help you to test a newly created position and to determine if your business really needs this staff function filled on a full time basis. In this way, co-ops may help you to test and establish your business and human resources priorities. Chances are students with good classroom experience can add to your business, but they may also be a little too idealistic about the way things could or should work in the real world. A little idealism can be great for your organization but always remember you are in no way committed long-term to your co-op. When the co-op placement is over, there are no strings attached on the part of the employer. Tax specialist, Michael Fromstein with SF Partnership, LLP, had several rewarding experiences with highly motivated students anxious to learn and improve their work skills. His firm hires co-ops for at least two periods so his firm has a chance to benefit from the student's learning. "The universities provide a structured environment for employers to access the attention of the students," notes Fromstein. During the busy tax season, his firm employs additional students to help out. Students share their experiences with others and if their work term proves beneficial, then you can bet they will tell their network. This can benefit businesses that require a constant influx of new talent because referrals do work. Of course, there is no such thing as a free employee. Any business that brings in a co-op worker must be willing to give a little back to the student. For some employers this means offering serious on-the-job training to their new hires. For others it means just opening the door to give a co-op a chance to break the catch 22 of needing a job to get a job. Employers want to hire people with proven skills but how do people get these valuable skills if they don't get work opportunities in the first place? Through a temporary co-op placement, an employee gains experience and ideally the employer gets a good worker worth hiring back With the high level of youth unemployment, you may be able to take advantage of a tax credit for hiring a co-op student. For example, some employers in Ontario can benefit from a government tax credit* for co-op students salaries. To find out what is available in your area check with your local government and Human Resources Development Corporation (HRDC) offices. Article courtesy of Canada One - The free online magazine for small businesses in Canada. www.canadaone.com
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