Contents:

• Welcome
• What's New
• GrandMaster Update

Welcome!

March 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:

March 19, 2008 - Remittance of Source Deductions and Other Amounts - Since July 2003, the Canada Revenue Agency (CRA) has administratively applied a graduated penalty structure to late remittances rather than the legislated 10% penalty. This administrative position applied to remittances of source deductions under Part I of the Income Tax Act. The February 26, 2008 budget proposes to legislate the graduated penalty structure. (Full Story)

March 3, 2008 - Interest rates for the second 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 April 1, 2008, to June 30, 2008. (Full Story)

February 1, 2008 - The Government of Canada Officially Launches Canada Summer Jobs 2008 - The Honourable Monte Solberg, Minister of Human Resources and Social Development, today officially launched Canada Summer Jobs 2008. This initiative provides funding to not-for-profit, public-sector, and small private-sector employers with 50 or fewer employees to create summer job opportunities for students 15 to 30 years old. (Full Story)

Alberta:

March 18, 2008 - Alberta's minimum wage increases to $8.40 per hour April 1 - Alberta’s minimum wage will increase from $8 to $8.40 per hour on April 1, ensuring it keeps pace with other salary increases in Alberta. Last June, government announced increases to minimum wage would be based on the average weekly wage index and come into effect on April 1. The index is based on Statistics Canada’s annual survey of employment, payroll and hours. (Full Story)

March 7, 2008 - Injured workers can now report online - The Alberta Workers' Compensation Board has announced its new electronic reporting for injured workers. This convenient service helps speed up claims processing. To report an injury using the online Worker's Report of Injury or Occupational Disease, workers are taken to an online form that is available from 6:00 a.m. to midnight (MST), seven days per week. (Full Story)

February 21, 2008 - Enhanced electronic reporting for medical specialists - Now available, the much-anticipated electronic reporting enhancement, tailored for the needs of emergency medical specialists. There are three new tabs on the electronic Medical Care Invoice (form C568) for an emergency medical specialist to appropriately complete the first report of injury instead of continuing to use the Physicians First/Progress Report of Injury (form C050 or C151). (Full Story)

February 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). Each summer the provincial government program subsidizes wages paid by not-for-profit employers to encourage higher salaries for short-term summer employment opportunities for students and unemployed workers. (Full Story)

January 2008 - The Government of Canada helps youth at risk in Edmonton find jobs and return to school - Mr. Laurie Hawn, Member of Parliament for Edmonton Centre and Parliamentary Secretary to the Minister of National Defence, on behalf of the Honourable Monte Solberg, Minister of Human Resources and Social Development, today announced a funding package for a program designed to help at-risk youth in the Edmonton area obtain employment or return to school. (Full Story)

British Columbia:

February 20, 2008 - The Government Of Canada Helps Vancouver Residents With Disabilities Gain Skills And Jobs - Jay Hill, Secretary of State and Member of Parliament for Prince George-Peace River, on behalf of the Honourable Monte Solberg, Minister of Human Resources and Social Development, today announced funding for the International Association of Machinists - Centre for Administering Rehabilitation and Employment Services Society (IAM CARES) to help unemployed workers with disabilities in the Vancouver area prepare for, obtain, and maintain jobs. (Full Story)

February 19, 2008 - The Government of Canada helps Kamloops area youth find work - Betty Hinton, Parliamentary Secretary to the Minister of Veterans Affairs and Member of Parliament for Kamloops–Thompson–Cariboo, on behalf of the Honourable Monte Solberg, Minister of Human Resources and Social Development, today announced funding for L.T.D. Consulting to help 60 local young people find and maintain meaningful employment. (Full Story)

February 19, 2008 - Working at home safety tips from WorkSafeBC - Whether you are renovating or working in your garden, WorkSafeBC has safety information to share with you at the B.C. Home & Garden Show at B.C. Place Stadium from February 20 - 24. "At the show our staff will be talking about and demonstrating how even a simple device can prevent serious injury if used correctly," said Don Nelson, WorkSafeBC Industry and Labour Services Manager. (Full Story)

February 12, 2008 - Formal Consultations Begin For Revised Women's Program - The Ministry of Employment and Income Assistance has posted a Request for Information (RFI) on the BC Bid website to solicit feedback on proposed changes to the design of its Bridging Employment Program. The design of the Revised Bridging Employment Program will build on the experience of the original program by applying lessons learned and best practices research, including valuable stakeholder feedback. (Full Story)

Manitoba:

March 11, 2008 - New Construction Wage Rates Effective June 1 - New minimum wage rates for the construction industry will be in place June 1, Labour and Immigration Minister Nancy Allan announced today. "There is considerable competition for qualified construction workers and if we want to keep Manitoba growing, we need a good solid wage base," said Allan. "Government is now implementing the Construction Industry Wage Consultation Panel recommendations." (Full Story)

February 27, 2008 - Province Announces 1,400 Summer Jobs To Be Available For Manitoba Youth - Manitoba youth between the ages of 16 and 24 will have access to approximately 1,400 summer jobs and four $500-scholarships through the province’s Green Team programs this year, Education, Citizenship and Youth Minister Peter Bjornson announced today. Additional funding of $445,000 this year will also better support not-for-profit organizations and offer scholarship opportunities. (Full Story)

February 14, 2008 - WCB Announces Public Consultation on Extending Coverage to Manitoba Industries - The Board of Directors of the Workers Compensation Board announced the organization is seeking comments from the public regarding the addition of industries to the workers compensation program. In 2005, the Manitoba Government made a public commitment to extend workers compensation coverage as part of its response to Working for Manitoba, the 2005 report of the Legislative Review Committee on The Workers Compensation Act. (Full Story)

February 11, 2008 - WCB funds new projects to help keep Manitoba workers safe - The Board of Directors of the Workers Compensation Board announced the organization is seeking comments from the public regarding the addition of industries to the workers compensation program. In 2005, the Manitoba Government made a public commitment to extend workers compensation coverage as part of its response to Working for Manitoba, the 2005 report of the Legislative Review Committee on The Workers Compensation Act. (Full Story)

New Brunswick:

March 14, 2008 - Reminder / Minimum wage rises to $7.75 on March 31 - New Brunswickers earning minimum wage will be receiving a pay raise. Effective March 31, the hourly minimum wage will be $7.75, an increase of 50 cents. Post-Secondary Education, Training and Labour Minister Ed Doherty said this is the largest one-time increase ever. It is the third time the minimum wage has risen since the government took office when it stood at $6.70 per hour. While the province's economy has performed well, the minister says the government would like all New Brunswickers to benefit. (Full Story)

March 7, 2008 - Record 400,000 in labour force as province experiences strong employment growth - New Brunswick's labour force rose to a record high, going above the 400,000 plateau in February, with more than 8,000 additional New Brunswickers working than compared to a year ago. These were the highlights as Post-Secondary Education, Training and Labour Minister Ed Doherty released the monthly labour force figures from Statistics Canada. (Full Story)

February 21, 2008 - Agreement to assist unemployed older workers throughout province - An agreement aimed at meeting the needs of unemployed older workers was announced today by the New Brunswick government. The Canada-New Brunswick Agreement on Targeted Initiative for Older Workers (TIOW) will allow unemployed older workers throughout New Brunswick to take part in activities such as skills assessment and upgrading, counselling and work experience. (Full Story)

February 19, 2008 - The Government of Canada helps Norton area youth gain work experience - Rob Moore, Parliamentary Secretary to the Minister of Justice and Attorney General of Canada and Member of Parliament for Fundy Royal, on behalf of the Honourable Monte Solberg, Minister of Human Resources and Social Development, today announced funding to help young people from the Norton area gain work experience. (Full Story)

February 8, 2008 - New Brunswick labour force hits new record - The labour force in New Brunswick experienced a significant increase compared to a year ago as the province's unemployment rate stood at 8.2 per cent last month. Post-Secondary Education, Training and Labour Minister Ed Doherty reported today on the monthly labour force survey released by Statistics Canada. (Full Story)

Nova Scotia:

March 20, 2008 - Minister Accepts Minimum Wage Review Committee Recommendations - Nova Scotians earning minimum wage will make $9.65 per hour. "Government has a vision for Nova Scotia," said Mr. Parent. "A vision where every Nova Scotian can live a safe, healthy, and prosperous life," said Mr. Parent. "Increasing minimum wage annually will help improve the lives of more then 20,000 Nova Scotians." (Full Story)

March 11, 2008 - WCB issues Consumer Price Index Payments - Each year the WCB makes adjustments to certain benefits to apply the Consumer Price Index (CPI). The CPI is a measure of changing price levels in Canada. When prices increase, the WCB increases benefits to reflect these price changes. (Full Story)

February 14, 2008 - Committee to Review Pension Benefits Legislation - Three experts have been appointed to review Nova Scotia's pension benefits legislation. "Pensions are an important issue for Nova Scotians and this review will help identify any problems that may exist in our current legislation," said Mark Parent, Minister of Environment and Labour. "We want our legislation to be modern, efficient and beneficial to all employees and employers in Nova Scotia." (Full Story)

Ontario:

March 10, 2008 - WSIB Announces Review of Experience Rating Program - Health and safety learning takes on a more youthful aspect this fall as the Live Safe! Work Smart! workplace health and safety program for students moves into Ontario's elementary schools. A recent Institute for Work & Health study found that 53% of 12-14 year old Ontario students have some paid employment (Full Story - PDF)

March 1, 2008 - Minimum Wage Goes Up Again - Ontario is raising the minimum wage to $8.75 on March 31, 2008. This is the fifth increase since 2004. The minimum wage remained static between 1995 and 2004. The McGuinty government began implementing annual increases early in its first term. Phasing in these increases balances the needs of hard working families with the needs of the small businesses that create jobs. (Full Story)

February 27, 2008 - Updated Information For Workers - The province is publishing a new version of a poster about the Employment Standards Act (ESA) that most Ontario employers will be required to post in the workplace. The poster outlines worker and employer rights and obligations and reflects recent changes to the ESA, regarding: Minimum wage, Reservist leave, Declared emergency leave, Family Day and Employees who qualify to take a family medical leave. (Full Story)

February 14, 2008 - Workplace Safety in the Spotlight for Young Entrepreneurs’ Award - Workplace Safety and Insurance Board (WSIB) Chair Steven Mahoney, P.C., announced today that the WSIB is conducting a review of its Experience Rating program. Also, effective immediately, if a company is responsible for a workplace fatality, they won't be eligible for a rebate from the WSIB. (Full Story - PDF)

Prince Edward Island:

March 12, 2008 - Minimum Wage Increasing May 1 - Executive Council has approved a recommendation by the Employment Standards Board that an increase to the minimum wage be implemented in two stages. Hon. Carolyn Bertram, Minister responsible for labour announced today that, effective May 1, 2008, the minimum wage in Prince Edward Island will increase from $7.50 to $7.75 , and will rise again on October 1, 2008 to $8.00. (Full Story)

February 20, 2008 - Province Of Prince Edward Island To Exempt Income From Working Income Tax Benefit - The Province announced that income received from the federal Working Income Tax Benefit will be exempt from income-tested programs of the Department of Social Services and Seniors. The Working Income Tax Benefit is a new refundable tax credit from the Government of Canada that will provide up to $500 to single individuals with annual earnings between $3,000 and $12,833. Couples and single parents with families, who earn between $3,000 and $21,167 will receive up to $1000. (Full Story)

Saskatchewan:

March 14, 2008 - Governments To Improve Aboriginal Training And Job Opportunities - Carol Skelton, Member of Parliament for Saskatoon-Rosetown-Biggar, on behalf of Monte Solberg, Minister of Human Resources and Social Development, Saskatchewan Advanced Education, Employment and Labour Minister Rob Norris today announced funding for an Aboriginal Skills and Employment Partnership (ASEP) project. (Full Story)

March 7, 2008- Saskatchewan Continues To Set Employment Records In 2008 - More Saskatchewan continues to set new records for employment growth in 2008 according to the latest labour force survey released today by Statistics Canada. There were 499,800 people working in Saskatchewan in February 2008. That's an increase of 7,300 from February 2007 and an all-time high for the month of February. (Full Story)

February 26, 2008 - Saskatchewan People Continue To Benefit From Economic Boom - For the second consecutive month, Saskatchewan workers have experienced the highest year-over-year increase in earnings of any province in Canada. In December 2007, Saskatchewan's average weekly earnings were $742.62, up 5.4 per cent from December 2006 and up 0.3 per cent from the previous month. (Full Story)

February 25, 2008 - Students Encouraged To Apply For Summer Jobs In The Public Service - Student looking for a summer job are encouraged to apply with the Saskatchewan public service. One of the biggest employers of students in the province, the Saskatchewan public service hires hundreds of post-secondary students to work across the province in a variety of jobs throughout Government ministries. (Full Story)

February 22, 2008 - New Agreement Signed On Training And Skills Development - Parliamentary Secretary Lynne Yelich, on behalf of Monte Solberg, Minister of Human Resources and Social Development, and Saskatchewan Advanced Education, Employment and Labour Minister Rob Norris today signed a new agreement to help Saskatchewan workers improve their skills prepare them for the jobs of the future. Today's announcement represents a significant Government of Canada investment in the Saskatchewan labour market while addressing employers' needs for skilled workers. (Full Story)

Yukon:

March 26, 2008 - New Workers' Compensation Act Tabled - Minister responsible for the Yukon Workers' Compensation Health and Safety Board, Brad Cathers, tabled the new Workers' Compensation Act in the Yukon legislature today. One of the most significant changes is a focus on early recovery and return to work by injured workers. (Full Story)

February 11, 2008 - Minimum Wage to Increase April 1 - Yukon’s Minimum Wage Rate will increase 2.5 per cent from $8.37 to $8.58 per hour, effective April 1. The authority for setting the minimum wage rate in Yukon rests with the Employment Standards Board. The board undertook a public consultation during 2005-06 to capture the views of employees, employers and the general public on the proposed changes to the Minimum Wage Rate. (Full Story)

The current release of GrandMaster Suite (5.52) 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:

• Employee Profile report now displays the employee status date - The Employee Profile report has been modified to include the employee Start Date, Recall Date or Termination Date adjacent the employee's status. This is useful if you wish to know the date an employee began work, will be recalled to work or the employee's last day.
• New life insurance and AD&D deduction calculation method added - A new deduction calculation method (calculation code 152) specifically for life insurance and AD&D calculations has been added. The new calculation method includes five parameters including a deduction rate, benefit rate, multiplier, maximum insurable amount (in thousands), and the standard work hours. The standard hours will only he used when the employee base earning is hourly based.
• Employee Deduction Rate report does not export the deduction description - The Employee Deduction Rate report did not include the deduction description when printing or exporting the report data. This problem was related to your choice of earning settings, Global or Payroll, which could result in a missing description. A change has been made to the report to find the deduction description based on your earning setting ensuring that the correct deduction description is included in the report or export.
• Printing T4 statements for multiple payrolls sorts the output initially by payroll - If you choose to remove the "Limit to Current Payroll" option when printing your T4 statements the printed output is initially sorting by the payroll, then by the CRA or business number and finally by your choice of sort. This is a problem where you have multiple payrolls that have the same business number and you want your output to be in the correct sort order based on your choice of sort. With this release we have removed the first level sort by payroll ensuring that your output will be sorted by business number then your choice of sort.
• Business Number prints on employee T4A statements - The T4A statement was printing the company business number (box 61) on the employee's copies. The CRA has indicated that this number should not appear on the employee copies of the T4A statement. This has been corrected with this release. When you print the T4A statements selecting option 2, Employee and Employer copies, the business number will appear in box 61 on the third slip on the form. This slip should be retained by the employer/payer while the top two slips will be submitted to the employee.
• Adjustments to the RL-1 box L amounts added to T4 box 14 - If you make adjustments to the year-end file from the Edit Year-End File option affecting the RL-1 box L amount, the adjustment will be added to the T4 box 14 value. This could result in the amount being doubled if you were to adjust the T4 box 40 amount as well. Since the box L value does not have a direct connection to box 14 but should affect box A we have made a change in the program to ensure that when you make adjustments to box L the change will be reflected in box A as well , but will not update box 14. Therefore, if you have the need to update or adjust your box L amount, and the same adjustment should be included federally, you should adjust the box 40 value which in-turn will update the federal box 14.
• The Cheque Register Report the report lists items as "Non-Issued" - In some cases when you print your Cheque Register report the employee pay records listed will display "Non-Issued". The report does display "Non-Issued" when the employee pay does not have a cheques number for the payment recorded in history for the sequence selected. However, prior to this release if you had issued the employee pay either via cheques or by EFT but after printing the pay cheques or generating the EFT file you generated an EFT file for a CSB (Canada Savings Bond) or ESOP deduction payment the process would mark the original payment transactions for the employee pay as deleted. This would result in the Cheque Register report displaying the items as "Non-Issued".
• Year-end XML file summary count incorrect in the header record - Prior to this release when you created an XML file to submit your year-end data and your submission included summaries for more than one business number, the total of the summaries could be incorrect. This was caused by a sort problem where the year-end data was not sorted by the business number and has been corrected with this release.
• The Import G/L Validation List does not import multiples of the same G/L code - If you import G/L codes to the G/L validation list where your import file has multiple instances of the same code with a different description, the import would not properly process the records. The import process would verify the code with the list to determine if it was an existing record. If the code was found it would overwrite the information with the new information from the import. However, in this case while the code was the same the description was not. Therefore, with this release we have made a change to the import program to compare the description from the import to the description found in the file. If the descriptions are not the same a new entry will be written.
• The bonus tax calculation results are not similar to the CRA online calculator - If you have earnings included on a calculation that have been set to "Use Bonus Tax Calculation" the calculated results varied from those calculated using the CRA Payroll Deductions Online Calculator (PDOC). This problem was more apparent when you had applied a portion or the entire bonus amount to an RRSP. After consultation with the CRA to clarify the bonus tax calculation formula we have made several changes to the tax calculation formula to bring our calculation in line with the PDOC. However, there may still be a variance depending on the information you input to the PDOC. Since our method relies on YTD amounts for prior bonuses, CPP and EI you would need to input your YTD figures into the PDOC as well. Additionally, there might be a minor variance as the year progresses and you have continual bonuses paid.
• Database error when using the Pending Termination option - When using the Pending Termination option to generate employee ROE information for more than one employee a database error would occur referring to the SELFADMN.DAT file. This error has been corrected.
  

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

Business Sense - You Don't Work Here Anymore
By Dr. Paul E. Adams

"It isn't the people you fire who will make your life miserable, it's the people you don't fire." - Harvey MacKay

Roger was fuming. And with good reason, as three times in the past four weeks, his shipping clerk failed to show up to work. He always had an excuse- from his car not starting to the flu. Roger had enough business problems to deal with; he did not need an unreliable employee. The pep talks and warnings made little difference; it was now time to tell the "bum" to take a walk.

As you may know, terminating an employee can be a distasteful task but necessary to the health of your business. Telling a worker to look for a new job because business is slow is not easy.

And if the employee is (was) a friend- you can count on hurt feelings and the possible end of the friendship. I knew of a situation where the owner found it necessary to fire his brother because he would not follow directions- they are still not speaking. Letting an employee go is not one of the joys of entrepreneurship. If you are an old hand at dismissing people, you may want to turn to the sports page. But if it is a new experience for you, read on.

Try to Salvage The Situation
Did you create the problem by hiring the wrong person? It would be easier for you if your employee changed to your liking and ideal, then everything will work out. But unfortunately, that is more wishful thinking than reality, leaving you with the choices of do nothing-not wise, encourage or reward change, or use fear.

Can you salvage the situation? Be sure your dissatisfaction with your employee is not your fault. Does the person understand what is expected? Do you treat all employees fairly? If you are on the mark with your management skills, maybe such motivational techniques such as recognizing and rewarding performance will help. Question your employee-attempt to uncover the reason(s) for doing a less than stellar performance. If you get nowhere and merely add to your frustration, you know what you must do.

If you have threatened to fire a troublesome employee and after your warning, John Doe changes his behavior, don't count on it lasting. It may be an act. You may think your problem is solved-surprise! A week later things are back to normal. Unless there is a strong inner drive, lasting change is difficult, near impossible. Fear, such as loss of a job, only brings a temporary change- as soon as the crisis is over, back to old habits.

Do it And Be Done With it
When you break the news, be on guard for the possibility of anger, even violence. If for any reason you are fearful of your employee's reaction, have someone with you. Don't postpone it, lie about the reasons, or dilly-dally around the situation hoping the worker will quit. This is the moment to show leadership and courage. Failing to take action may cost you the respect of your other employees. Don't let your feelings stand in your way. The longer you allow him or her to remain on the job, the more unfair you are to your employee and yourself. As much as you may dislike it, confrontation is part of business.

If you are required to give a two-week notice, do so, but issue a cheque for the two weeks, telling your ex-employee to collect any personal items and leave your business today. Otherwise, a disgruntled employee hanging around for two weeks can poison the atmosphere of your business with bitterness. Deliver your message, politely, firmly and without emotion. And say goodbye.

Whatever the reason, the market, your finances, or your dissatisfaction, when the axe must fall, do it promptly with frankness and fairness. It is part of the price of owning your own business.

Courtesy of CanadaOne Magazine