Contents:

• Welcome
• What's New
• GrandMaster Update

Welcome!

January 2008 - 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:

Jan. 21, 2008 - The CRA reminds that tips are taxable income - The Canada Revenue Agency (CRA) wants to remind Canadians who earn tips and gratuities of the rules for reporting this income on their annual income tax returns. Restaurant servers, hairdressers, valets, taxi drivers and others who earn tips may not have all of their income recorded by the employer and therefore not included on their T4 slips. (Full Story)

Jan. 9, 2008 - Canada moves forward on protecting jobs for reservists - The Government of Canada is moving forward with a strategy which will provide protection to Reservists when they return to civilian life. The strategy will include legislative changes which will protect the civilian jobs of reservists who work for employers in federally-regulated sectors and the public service. It will also provide support to student reservists. (Full Story)

January 8, 2008 - CRA takes action to enforce tax laws - The CRA is committed to promoting the integrity of the tax system through a number of compliance activities. In 2006/07, these actions included almost 820,000 adjustments to individual tax returns after comparing the information reported by taxpayers with data filed by third parties, such as employers. The CRA also reviewed more than 6,400 businesses to ensure they were maintaining proper books and records. (Full Story)

Dec. 24, 2007 - 2008 Automobile Deduction Limits and Expense Benefit Rates for Business - The Honourable Jim Flaherty, Minister of Finance, announced today the automobile expense deduction limits and the prescribed rates for the automobile operating expense benefit that will apply in 2008. (Full Story)

Dec. 21, 2007 - Canada Pension Plan And Old Age Security Benefit Rates Effective January 1, 2008 - Human Resources and Social Development Canada today announced the latest benefit rates for the Canada Pension Plan (CPP). Canadians already receiving CPP benefits as of December 2007 will get an increase of 2.0 percent on January 1, 2008. (Full Story)

Dec. 20, 2007 - Employment Insurance - Important Notice about Maximum Insurable Earnings for 2008 - Effective January 1, 2008, the maximum insurable earnings will increase from $40,000 to $41,100. This means that an insured worker will pay EI premiums in 2008 on insured earnings up to $41,100. (Full Story)

Dec. 7, 2007 - Canada Revenue Agency interest rates for the first calendar quarter - The Canada Revenue Agency (CRA) today announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts the CRA owes to individuals and corporations. These rates are calculated quarterly in accordance with applicable legislation and will be in effect from January 1, 2008, to March 31, 2008. (Full Story)

Alberta:

Jan. 21, 2008 - Province helps boost summer wages for students at not-for-profits - Alberta's not-for-profit organizations will have an easier time attracting workers this summer thanks to a wage subsidy increase from $6.05 to $7 per hour for successful applicants to the Summer Temporary Employment Program (STEP). (Full Story)

Jan. 11, 2008 - Occupational Health and Safety fines in 2007 heftiest yet - Fines levied for contraventions of Alberta's Occupational Health and Safety Act reached their highest total ever in 2007, reflecting a growing intolerance of unsafe workplace practices. Twelve companies were fined a total of $1,720,000 in penalties, which topples the 2006 tally of $1,534,500. (Full Story)

Dec. 10, 2007 - Alberta increases protection for temporary foreign workers - The Alberta government has set up two special advisory offices for temporary foreign workers and established a team of inspectors to help ensure they are being treated fairly in their workplaces. "Temporary foreign workers are helping to fill a critical need in our province. It is essential that they are treated fairly," said Iris Evans, Minister of Employment, Immigration and Industry. (Full Story)

British Columbia:

Jan. 23, 2008 - Changes to WorkSafeBC's Forestry Regulations to take effect Spring 2008 - At their meeting on December 11, 2007, the Board of Directors of WorkSafeBC approved amendments to the forestry section of the Occupational Health and Safety Regulation and directed that these new standards be deposited with the Registrar's Office as soon as possible resulting in an effective date of May 1, 2008. (Full Story)

Jan 18, 2008 - Mentorship Funding Supports High-Tech Women - Women in British Columbia's technology sector are receiving funding from the Ministry of Small Business and Revenue and the Ministry of Community Services to further support the Wired Woman Mentorship Program. "In British Columbia, 95 per cent of high technology businesses are small businesses who will really benefit from this type of program," said Thorpe. (Full Story)

Jan. 14, 2008 - Government of Canada Announces Expansion of Temporary Foreign Worker Program Pilot Project to Ease Labour Shortages for Employers in B.C. and Alberta - The Honourable Monte Solberg, Minister of Human Resources and Social Development, today announced the expansion of the Expedited Labour Market Opinion pilot project (E-LMO) which will make it faster for employers in British Columbia and Alberta to hire foreign workers in a greater number of specific occupations when there are no Canadian citizens or permanent residents available to fill the positions. (Full Story)

Dec. 4, 2007 - Proposals Wanted For Specialized Employment Services - The Ministry of Employment and Income Assistance has posted a Request for Proposals (RFP) on the BC Bid website for $950,000 in complementary, innovative or supplemental services as part of its $20-million-a-year Employment Program for Persons with Disabilities (EPPD). (Full Story)

Manitoba:

Jan. 25, 2008 - Province Launches Workplaces In Motion - Workplaces in motion, a new component of the Manitoba in motion program that will encourage employees and employers to build physical activity into their daily lives at work, was launched today by Healthy Living Minister Kerri Irvin-Ross and Culture, Heritage, Tourism and Sport Minister Eric Robinson. (Full Story)

Jan. 17, 2008 - Panel Recommends New Construction Wages - The Construction Industry Wages Consultation Panel has recommended improved construction wage rates that will help keep Manitoba's construction industry competitive, Labour and Immigration Minister Nancy Allan announced today. The Construction Industry Wages Act divides the construction industry into the heavy sector and the industrial, commercial and institutional sector (ICI). The report recommends the first stage of wage increases for both sectors come into effect June 1, 2008. (Full Story)

Jan. 2008 - WCB Enhances Security of Online Services - Designed to provide faster and better service to our clients, the WCB’s online services include the Clearance Request System, Claims Online and Incident Reporting. Currently, when registering to use any of these services, employers are asked for information such as their company’s WCB firm number, industry code and corresponding rate. Employers will now also be asked to provide their company’s last reported Annual Estimated Earnings or the last reported Quarterly Earnings. (Full Story)

New Brunswick:

Jan. 22, 2008 - Survey shows NBCC 2006 grads employed in record numbers - Post-Secondary Education, Training and Labour Minister Ed Doherty today announced the results of the annual survey of graduates of New Brunswick Community College (NBCC) / Collège communautaire du Nouveau-Brunswick (CCNB). The level of employment related to training in the 2007 reference week increased to 84 per cent in 2006, up one percentage point from the previous year. The percentage of employed graduates working in New Brunswick was 87 per cent in 2007. (Full Story)

Jan. 11, 2008 - NB tops Atlantic Provinces in annual average employment growth - New Brunswick was first among the Atlantic Provinces and fourth in Canada in annual average employment growth in 2007. Post-Secondary Education, Training and Labour Minster Ed Doherty reported today on provincial highlights of the Statistics Canada monthly labour force survey for December, which also included a new record level for the province's labour force. (Full Story)

Jan. 8, 2007 - Summer jobs applications for students now available - Applications are now available for the Student Employment and Experience Development (SEED) program for students looking to get started on their summer job search. Post-Secondary Education, Training and Labour Minister Ed Doherty made the announcement today. (Full Story)

Jan. 2, 2008 - Survey of employers currently in progress - A survey of employers in the province is underway by the Labour Market Analysis branch of PETL, in partnership with the New Brunswick Career Development Action Group. The current employer survey is the largest such survey to date in New Brunswick, with 7,000 employers targeted to be interviewed. The department appreciates the participation of employers in this survey. All responses will be kept strictly confidential, and only aggregate data will be released. (Full Story)

Dec. 19, 2008 - Province invests more than $180,000 for training opportunities for New Brunswickers - The Government of New Brunswick recently invested more than $180,000 for specialized training initiatives throughout the province, Post-Secondary Education, Training and Labour Minister Ed Doherty announced today. "By continuing to provide funding for specialized training we are working to ensure that the people of this province have the necessary skills and training required by today's employers," Doherty said. "We must help prepare people for not only their career, but also for their future." (Full Story)

Newfoundland and Labrador:

Jan. 25, 2008 - Labour Ministers Work Together to Improve Canadian Workplaces - At their annual meeting, Canada's federal, provincial and territorial labour ministers underscored their commitment to promoting safe and healthy workplaces and improving protection for workers. All labour ministers are very concerned about violence in the workplace. This meeting provided them an opportunity to discuss legislation and other initiatives by the provinces and territories as well as the recently proposed federal regulations. (Full Story)

Jan. 17, 2007 - Provincial Employment Level at Highest Level in 30 Years - The number of people working in the province has reached a 30-year high as labour market conditions in Newfoundland and Labrador continued to improve in 2007. Further, the unemployment rate has fallen to its lowest level in 25 years. Compared to 2006, the number of people working in 2007 increased by 1,400 and the number of unemployed people looking for work dropped a further 3,400. (Full Story)

Jan. 8, 2007 - Public Consultations Set for Review of Minimum Wage - The minimum wage review supports the Provincial Government’s Blueprint commitment to consult and plan for future increases in the minimum wage in a predictable and incremental manner, and to provide stakeholders with the opportunity for meaningful input with a view to achieving a minimum hourly wage of $10 per hour by 2010. Since 2005, the Provincial Government has increased the minimum wage by 33 per cent. This includes the Budget 2007 commitment to raise it to $7.50 on October 1, 2007, and to $8 per hour, effective April 1, 2008. (Full Story)

Dec. 17, 2007 - Lost-time incidence rate on the decline in Newfoundland and Labrador - The minimum wage review supports the Provincial Government’s Blueprint commitment to consult and plan for future increases in the minimum wage in a predictable and incremental manner, and to provide stakeholders with the opportunity for meaningful input with a view to achieving a minimum hourly wage of $10 per hour by 2010. Since 2005, the Provincial Government has increased the minimum wage by 33 per cent. This includes the Budget 2007 commitment to raise it to $7.50 on October 1, 2007, and to $8 per hour, effective April 1, 2008. (Full Story)

Northwest Territories:

Jan. 11, 2008 - Changes to Employment Standards Effective April 1, 2008 - Changes to Employment standards including a new Employment Standards Act, that was legislated in August of 2007, will become effective April 1, 2008. "These changes are the result of many years of consultation and input by employees and employers," said Minister Jackson Lafferty. "Employment in the Northwest Territories is growing and changing, and this new system of Employment Standards will better suit modern Northern employees and workplaces." (Full Story)

Dec. 18, 2007 - WCB Employees Raise Over $15,000 for Local Charities - Over $15,000 was raised for northern charities once again this year by the employees of the Workers' Compensation Board of the Northwest Territories and Nunavut (WCB). Every year, the organization's staff find ways to give back to communities in both the Northwest Territories and Nunavut. (Full Story - PDF)

Nova Scotia:

Jan. 25, 2008 - Nova Scotia Moves National Commitment to Reducing Workplace Violence - Nova Scotia is strengthening its commitment to reduce workplace violence, with support from the federal, provincial and territorial governments. Nova Scotia joined the other jurisdictions in formally recognizing that violence prevention is integral to safe and healthy workplaces, which benefit workers, employers and the economy. (Full Story)

Jan. 18, 2008 - Chris Power Deputy Chair of Workers' Compensation Board - Chris Power, a key leader in the Nova Scotia business community, has been appointed deputy chair of the Workers' Compensation Board. Mark Parent, Minister of Environment and Labour, said today, Jan. 18, that the appointment followed a great deal of work by a search committee representing the board, employers and employees. (Full Story)

Jan. 3, 2008 - Codes of Practice Available - Retail stores, gas stations, and taxi owners have a new tool to help them protect their workers from violence on the job. Adopting the appropriate code of practice helps businesses comply with new occupational health and safety regulations that take effect April 1. (Full Story)

Dec. 21, 2007 - Pension Benefits Amendment Proclaimed - An amendment to the Pension Benefits Act that further protects pension plan members when their employer voluntarily closes was proclaimed today, Dec 21. The amendment applies to companies that announced closures effective May, 1, 2007. (Full Story)

Dec. 20, 2007 - Greater Access to Compassionate Care - Nova Scotians will have greater access to compassionate-care leave because of new regulations in the Labour Standards Code. The regulations will make the definition of a family member for compassionate-care leave in the Labour Standards Code consistent with the federal government's definition for the Employment Insurance compassionate-care benefit. (Full Story)

Dec. 13, 2007 - Retail Business Designated Day Closing Act Passes - Retail workers and businesses in Nova Scotia now have clarity on days businesses must close. The Retail Business Designated Day Closing Act was passed today, Dec. 13, and takes effect immediately. "We are pleased to support a bill that provides clarity and direction to our retailers and their employees," said Mark Parent, Minister of Environment and Labour. "Retail workers now know what days they will have off throughout the year and businesses know what days they must close." (Full Story)

Ontario:

Jan. 17, 2008 - Government of Canada funds project to help Canadians improve their essential skills and participate in the work force - Member of Parliament for Kitchener-Conestoga, Mr. Harold Albrecht, on behalf of the Honourable Monte Solberg, Minister of Human Resources and Social Development, today announced funding for Laubach Literacy Ontario, Inc. to incorporate essential skills into literacy instruction through the development and testing of tools with literacy volunteer tutors and adult learners. (Full Story)

January 7, 2008 - McGuinty Government Investing In Skills Training In Hamilton - The McGuinty government is investing in three local skills training centres to help apprentices, workers and journey persons develop their skills, John Milloy, Minister of Training, Colleges and Universities announced today. "Hamilton needs more skilled workers to keep its employers strong and its economy moving forward," Milloy said. "We're providing unions and employers with resources to give workers the skills they need to help make a more prosperous Ontario." (Full Story)

Dec. 27, 2007 - Injured Worker Benefits Increasing on January 1 - Workers who have been injured on the job in Ontario will receive the second of three increases in their benefits of two-and-a-half per cent as of January 1, 2008, Labour Minister Brad Duguid said. "Our government is committed to creating a brighter future for injured workers," Duguid said. "We have put more money into the hands of injured workers through benefit increases and reforms to the Workplace Safety and Insurance Act." (Full Story)

Prince Edward Island:

Jan. 25, 2008 - Labour Ministers Work Together to Address Issues of Concern - A meeting of federal, provincial and territorial Ministers of Labour wrapped up today with a commitment by Ministers to work together to achieve healthy and safe workplaces for all Canadians. Hon. Carolyn Bertram, Minister of Communities, Cultural Affairs and Labour says the three-day conference was a great opportunity to work with her counterparts. "We agreed to collaborate on ways to address issues including preventing violence in the workplace, employment protection for victims of crime and best practices for temporary foreign workers and for young workers." (Full Story)

Saskatchewan:

Jan 28, 2008 - Economic Boom Means Higher Incomes For Working People In Saskatchewan - Payroll Earnings Jump By 6.9 Per Cent in Past Year - the Biggest Increase in Canada. Saskatchewan's economic boom means higher incomes for working people in our province. That's the finding of a new report on payroll earnings released today by Statistics Canada. The average Saskatchewan worker now earns $740.66 a week. That's an increase of 6.9 per cent in the past year - the largest increase of any province in Canada during that period. (Full Story)

Jan 11, 2008 - Two New Job Records Set in Saskatchewan - Saskatchewan ended 2007 by setting two new records on the job front according to Statistics Canada Labour Report for December 2007. In 2007, there were more people working on an average annual basis than ever before in the province. The second record was set for employment numbers for the month of December. (Full Story)

Dec. 19, 2007 - New Labour Legislation Creates A Fair And Balanced Environment For Workers, Unions And Employers - Saskatchewan's new government fulfilled a promise to ensure a fair and balanced labour environment that will contribute to economic growth and security. That was the message today from Advanced Education, Employment and Labour Minister Rob Norris as he introduced The Public Service Essential Services Act and amendments to The Trade Union Act. (Full Story)

Dec. 21, 2007- Minimum Wage Increase Effective In The New Year - Saskatchewan's minimum wage will increase from $7.95 per hour to $8.25 per hour effective January 1, 2008. The increase is the first of three stages that will see the minimum wage increase to $8.60 per hour on May 1, 2008, and to $9.25 per hour on May 1, 2009. The minimum call-out pay, which is three times the level of the minimum wage, will also increase accordingly. (Full Story)

Dec. 21, 2007- 8.2% Reduction in 2008 WCB Average Premium Rate Approved - The Saskatchewan Workers' Compensation Board (WCB) today announced it will reduce the 2008 average premium rate by 8.2 per cent. The announcement follows a series of meetings with employer stakeholders and is the third reduction to the average premium rate in the past four years. (Full Story)

The current release of GrandMaster Suite (5.51) 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:

• Updated tax-tables and tax calculations for year-end procedures - The program has been updated to include the necessary changes to the tax calculation for January 2007. Your Provincial and Federal TD1 amounts will update automatically upon calculation of your first payroll of 2007.
• Import options now support distribution code validation - With this release we have added distribution code validation to the Import Pay Hours and Import Pay Adjustments options. This change will ensure that records are not imported with invalid distribution codes. If an invalid code is found the entire record will be excluded from the import and a reference to the invalid record will be written to the import report so that you know which record was invalid.
• Calculation date error message clarified - Prior to this release when attempting to calculate a pay when you set up a new payroll or at the start of a new year an error message would be displayed indicated a problem with the dates: "Error - Pay date has not been established. Set the Pay Date before calculating pay". This message has been changed to display the following message when your calculation dates automatically roll over to a new year. "Error - the payroll dates have advanced into a new year and the Cheque Date has not yet been established. Please set the Cheque Date by choosing the appropriate calculation type from the Set Calculation Type menu options before calculating pay." This would occur when you have a weekly or bi-weekly payroll and you have closed the last pay of the prior year resulting in the advancement of the pay period dates into a new year. In many cases users do not set the pay calculation dates from the Set Calculation Type menu because the program will automatically advance the calculation dates when you close a pay sequence. However, at the end of a pay year the date advance feature will not advance a cheque date into a new year because doing so would result in the prior years data to be closed to modification, therefore, you must establish that date and indicate to the system if it should consider the dates as a new year. Additionally, if you have just set up a new payroll and have never established the pay calculation dates you will see the following message directing you to establish the dates prior to calculating. "Error - the payroll dates have not been established for this payroll. Please set the Cheque Date by choosing the appropriate calculation type from the Set Calculation Type menu options before calculating pay."
• YTD adjustments to earnings are not reflected in the YTD Pensionable earning amount - Prior to this release if you had keyed YTD adjustments to employee earnings the amount of the adjustment was not included in the employee pensionable earning amount. This would result in an incorrect pensionable earning amount shown on the employee T4. We have made changes to correct this problem.
• Mandatory 2007 Pay Codes - The following codes, in the "Other Information" area of the T4 slip, were optional for 2006 but are mandatory for 2007. Code 85, Employee paid premiums for private health services plans, is still optional.
  - Code 81 - Placement or employment agency workers gross earnings
  - Code 82 - Drivers of taxis or other passenger-carrying vehicles gross earnings
  - Code 83 - Barbers or hairdressers gross earnings
  - Code 84 - Public transit pass
  - Code 85 - Employee-paid premiums for private health services plans.
• Employee pay statement allows you to print earning hours up to 4-decimal places - Prior to this release you did not have the option to print employee hours to 3 or 4 decimal places. We had provided an option to print hours to 2, 3, or 4 decimal places but that was only for accumulator hours. With this release we have modified the Hours Print Option to include earning hours when printing to 2, 3, or 4 decimal places.
• Employee pay statement email option changed to send statement as attachment - With this release we have modified the process of distributing employee pay statements via email. Prior to this release the email pay statement process would display the pay statement details in the body of the email message. This became a problem for some employees whose email viewer did not allow them to adjust their characters per line to at least 132 to properly display the pay details without wrapping. Although we had recommended that where this was a problem employees could have their statement sent to a email application that would allow them to adjust the display settings such as Hotmail, we decided to have the statement sent as an attachment. With this change the employee pay statement will be sent to them in an email notification that will display their name, the pay period dates, and the file name of the statement file in the body of the message. They will be informed in the notification message to open the attached file, "stubs.txt", to view their pay details. While this should solve the display issue there may still be situations occur where employee email settings may automatically delete email messages with an attachment. In this case the employee must ensure that they are able to receive messages with attachments in order to successfully receive their pay statement via email.
  

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

CPP/QPP, WCB and EI Rates for 2008

The Canada Revenue Agency (CRA) has announced the updated rates for Canada Pension Plan (CPP)/Quebec Pension Plan (QPP), Employment Insurance (EI) and Worker's Compensation (WCB). They are briefly discussed here along with some basic year-end procedures for each item.

2008 Canada/Quebec Pension Plan

Employee and employer contributions to EI and CPP are based on all eligible earnings and commence January 1, 2008. For CPP and EI there are yearly maximum contribution amounts and once these are reached during the calendar year the contributions will cease. For those employees who earn more than $44,900.00 in a calendar year the maximum contributions amounts will be reached prior to the December pay period. Contributions to CPP and EI will commence again January 1 of the following year.

Contributions to the Canada Pension Plan (with few exceptions ) commence the following month the person turns of 18 years of age. Contributions cease as of age 70 even though the person may continue employment.

The 2008 Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) rates are as follows:

Some CPP-related items to consider when preparing your T4s and T4As:

• Ensure that none of your employees have contributed more than the 2007 CPP maximum.
• All taxable benefits must be included as employment income and the corresponding source deduction totals must be updated. The latter is especially important for individuals below the yearly pensionable (CPP) earnings. Remember that non-cash taxable benefits are not insurable, with the exception of board and lodging benefits provided in the same pay period that an employee receives cash earnings and an employer’s contribution to an employee’s registered retirement savings plan.
• CPP/QPP pensionable earnings (Box 26) on the T4 slip must be completed only if the amount is different from the amount reported in Box 14. If the amounts are the same, you can leave the box blank.
• You must prepare two T4 slips for employees who made contributions to both the CPP and QPP: one showing the QPP deducted and the applicable pensionable earnings and remuneration the employee earned in Quebec, and the other showing the CPP deducted and the applicable pensionable earnings and remuneration the employee earned in any other jurisdiction.
• Ensure that you have not adjusted the CPP contribution amounts you reported on the T4 if you over-deducted employee contributions. The CRA will credit the employees with the over-contribution when they file their tax return.

Workers’ Compensation Filing Deadlines/Assessable Earnings

Each Canadian province/territory has enacted workers’ compensation legislation, which identifies the industries covered, employers’ responsibilities for paying assessments and responding to workplace accidents, and the conditions under which an employee may claim workers’ compensation benefits.

The following table outlines the different province/territory WCB filing deadlines and rates for 2008:

• When preparing your T4s and T4As, remember that top-up amounts paid to employees receiving WCB benefits are reported on the T4. The actual WCB benefits are not reported on the form. With the exception of Quebec, WCB benefits are reported by the provincial/territorial boards on form T5007, Statement of Benefits.

Employment Insurance

Employment Insurance (EI) contributions are the second deduction following Canada or Quebec Pension Plan contributions. Both employers and employees must pay into EI. There are no age limits for EI premiums. Eligibility for benefits is based on the number of hours an individual works, with their earnings insured from the first dollar earned, up to an annual maximum. The maximum was set at $39,000 since 1997 and increased to $40,000 in 2007.

The following table outlines the new EI rates for 2008:

Some EI-related items to consider when preparing your T4s and T4As:

• No employee has contributed more than the 2007 EI maximum.
• Ensure that you have not adjusted the EI premium amounts you reported on the T4 if you over-deducted employee contributions. The CRA will credit the employees with the over-contribution when they file their tax return.