Wage Loss Replacement Plans subject to CPP • Minimum wage tied to CPI • Minimum wage under review • WSIB coverage for construction to be mandatory in 2013 • Minimum wage going up April 1 • P.E.I. employers can renew workers’ compensation online • Nova Scotia passes citizenship ceremony leave
Canada
Wage Loss Replacement Plans subject to CPP
Payments from an employer-funded Wage Loss Replacement Plan (WLRP) are subject to Canada Pension Plan (CPP) contributions, according to the Canada Revenue Agency (CRA). Under legislation passed in December 2011, payments from an employer-funded WLRP are considered employment income and therefore are subject to CPP contributions. A WLRP is an arrangement between an employer and employees or between an employer and a group or association of employees, under which provision is made for indemnification of an employee, by means of benefits payable on a periodic basis, if an employee has a loss of employment income as a consequence of sickness, maternity or accident, according to interpretation bulletin IT-428 from the CRA. Employers who have not withheld CPP on employer-funded WLRP payments in the past should start withholding CPP contributions on these amounts effective January 2012.
Alberta
Minimum wage tied to CPI
Minimum wage changes in Alberta will now be tied to the consumer price index (CPI). The minimum wage change will be implemented on Sept. 1. The government has promised to give three months’ notice of indexed minimum wage changes for the province in the future.
Yukon
Minimum wage under review
The territory adjusts its minimum wage every April 1 based on the consumer price index. The Employment Standards Board is reviewing the minimum wage rate. At press time, no announcement on any changes had been made.
Ontario
WSIB coverage for construction to be mandatory in 2013
Ontario’s Workplace Safety and Insurance Board (WSIB) has launched a year-long campaign to encourage independent operators and others working in the construction industry to voluntarily pre-register for workers’ compensation coverage. Beginning next year, coverage will be mandatory. Amendments to the province’s Workplace Safety and Insurance Act were passed in 2008 to make workers’ compensation coverage mandatory for independent operators, sole proprietors, some partners in a partnership and some executive officers who work in the construction industry. The amendments become law on Jan. 1, 2013. The change means independent operators; executive officers and partners in a partnership working in construction who have no workers will be required to have WSIB coverage as of next year. There is an exemption for home renovators who are contracted directly with the person occupying the residence and work exclusively in home renovation. Businesses are allowed to select one executive officer or partner to apply for an exemption from coverage. This must be an individual who does not perform any construction work on any building site (including on-site supervision). Amendments that allow the affected individuals to pre-register with the WSIB took effect Jan. 1, 2012. The amendments allow the individuals to register with the board until Dec. 31, 2012, but pay no premiums until next January when coverage begins.
New Brunswick
Minimum wage going up April 1
The minimum wage is set to increase to $10 an hour on April 1. The minimum wage for employees whose hours of work per week are unverifiable and who are not strictly employed on a commission basis will rise to $440 on the same day. The province is considering whether to introduce a separate minimum wage rate for employees who receive tips. At press time, no decision had been announced.
Prince Edward Island
P.E.I. employers can renew workers’ compensation online
Employers in Prince Edward Island now have the option of renewing workers’ compensation registration electronically using the Workers Compensation Board’s online services. WCB of P.E.I.’s online services provide secure 24/7 access to employer account information. The deadline for registration is Feb. 28. Employers can use online services to: renew employer registration, view account information, view rates and how they were calculated for employers who are experience rated, access claims costs reports, view account status and payroll history, submit an electronic employers report (form 7) and request clearance letters. More services will be available online later in 2012, according to the WCB.
Nova Scotia
Nova Scotia passes citizenship ceremony leave
Nova Scotia has rolled out a new leave to allow employees to attend their citizenship ceremony. The new protected leave, contained in the Labour Standards Code, gives employees in the province the right to take time off work to attend the ceremony. The unpaid leave is for up to one day, or less if the employee chooses. If possible, employees must give their employer 14 days’ notice they plan to take the leave. If this is not possible, they must give as much notice as reasonably possible, the province said. If the employer asks, the employee must provide evidence they are attending their citizenship ceremony on a particular day, such as the notice to appear sent by Citizenship and Immigration Canada.
