2013 ceilings for housing benefits announced • PRPP legislation in force • Rules for employment insurance tightened • PST registration now open in B.C. • Committee recommends minimum wage changes in Newfoundland and Labrador • Committee holding public consultations on workers’ compensation in Newfoundland and Labrador
CANADA
2013 ceilings for housing benefits announced
The Canada Revenue Agency (CRA) has announced the 2013 ceilings for housing benefits that employers provide to employees in prescribed zones without a developed rental market. The changes reflect an increase in the shelter portion of the consumer price index.
For 2013, employers should use the following allowable ceiling amounts to determine the value of housing benefits for employees in prescribed zones without a developed rental market.
For common shelter:
• $179/month, previously $177
For an apartment or duplex:
• $483/month for rent only, previously $477
• $235/month for utilities only, previously $232
• $718/month for rent and utilities, previously $708
For a house or trailer:
• $809/month for rent only, previously $797
• $358/month for utilities only, previously $353
• $1,166/month for rent and utilities, previously $1,150.
For a listing of communities that qualify as prescribed zones, refer to the CRA guide, Northern Residents Deductions – Places in Prescribed Zones (T4039).
PRPP legislation in force
Legislation to implement the federal part of a new private pension plan initiative, called Pooled Registered Pension Plans (PRPPs), is now in effect.
Bill C-25, the Pooled Registered Pension Plans Act, and regulations to implement it came into force on Dec. 14. The act and regulations apply to federally regulated employers and employees, as well as to persons working in the Northwest Territories, Nunavut and the Yukon. Provincial governments wishing to establish such plans will first need to pass their own legislation.
Rules for employment insurance tightened
New rules regarding employment insurance came into effect on Jan. 6.
Unemployed Canadians have always been required to search for and accept “suitable employment” in order to receive EI benefits, but the terms had not been spelled out.
Under the new rules, a “reasonable job search” includes the preparation of resumés, attending job fairs, registering for job banks, applying for jobs and completing evaluations determining competency. “Suitable employment” will be assessed according to commuting time, how compatible work hours are with the claimant’s life and wages.
Claimants will also be categorized into three categories: long-tenured claimants, occasional claimants and frequent claimants. Frequent claimants are expected to accept any job that is similar to their previous position. After seven weeks, the claimant is expected to accept any position she is qualified for with the pay rate beginning at 70 per cent of her previous hourly earnings.
BRITISH COLUMBIA
PST registration now open in B.C.
Businesses in British Columbia that sell or lease taxable goods, or sell software or taxable services in the province, can now register to collect the tax.
Registration for the provincial sales tax (PST) opened on Jan. 2. The PST will be implemented on April 1. B.C. had adopted a harmonized sales tax (HST) — a blend of the PST and federal GST — but residents voted to axe the HST in a referendum and return to the PST.
NEWFOUNDLAND AND LABRADOR
Committee recommends minimum wage changes
A committee studying Newfoundland and Labrador’s minimum wage recommends increasing the rate this year and indexing it to account for inflation in future years.
Specifically, the advisory committee appointed by the government last year to review the minimum wage suggests the province increase the rate this year “to reflect the loss of purchasing power in the minimum wage” since it was last increased in 2010. The rate is currently $10 per hour. The committee also recommends the government provide six months’ notice of the change.
Beginning in 2014, the committee recommends the government annually adjust the minimum wage rate based on the previous year’s all-items consumer price index for the province. It suggests changes be announced by the end of January each year and be implemented on May 1 every year and rounding the adjustments to the nearest $0.05.
Committee holding public consultations on workers’ compensation
Public consultations on Newfoundland and Labrador’s Workplace Health, Safety and Compensation Commission's operations are now underway.
The consultations are part of a review of the workers’ compensation system that began last year. The review is required by law to occur every five years and will take place until the end of February.
The committee charged with carrying out the review has released a discussion paper available at www.servicenl.gov.nl.ca/consultation/src_discussion_paper.pdf.
