Changes in payroll laws and regulations from across Canada
Federal
Feds table budget legislation
The federal government has tabled legislation that would implement payroll-related measures proposed in this year’s budget.
In early May, Finance Minister Joe Oliver presented Bill C-59, Economic Action Plan 2015 Act, No. 1, for first reading in the House of Commons. It would amend regulations under the Income Tax Act to create a quarterly remitter category for new employers whose average monthly withholding amount is less than $1,000 if they have a perfect compliance record with the Canada Revenue Agency over the previous 12 months.
It would also amend the Income Tax Act to increase the annual contribution limit for tax-free savings accounts from $5,500 to $10,000. Amendments to the Employment Insurance Act would extend the period in which eligible individuals may receive EI compassionate care benefits from six weeks to six months, beginning next year. The bill would also amend Part III of the Canada Labour Code to increase the maximum amount of compassionate care leave for federally regulated workers from eight weeks to 28 weeks and to extend the period within which an employee must take the leave from 26 weeks to 52 weeks. The changes would take effect Jan. 3, 2016.
In addition, the bill would amend the code to include interns under its labour standards and health and safety provisions. The amendments would also allow employers to hire unpaid interns for periods of four to 12 months if certain conditions were met.
Another proposal in the bill would give the Treasury Board the authority to unilaterally establish and change terms and conditions of employment related to sick leave for federal public sector workers. It would allow the federal government to replace the current system of banking sick days with a short-term disability plan.
Reminder: July 1 a statutory holiday
Wednesday, July 1, Canada Day, is a statutory holiday under labour standards laws in all Canadian jurisdictions. In Newfoundland and Labrador, the holiday is called Memorial Day.
Northwest Territories
Reminder: Minimum wage rising
On Jun. 1, the territorial government raised the minimum wage rate in the Northwest Territories from $10 an hour to $12.50.
National Aboriginal Day June 21
Sunday, June 21 is a statutory holiday in the Northwest Territories. The holiday celebrates National Aboriginal Day, which recognizes the contribution of Aboriginal Peoples both in the region and Canada.
Prince Edward Island
Reminder: Minimum wage going up
The minimum wage rate in Prince Edward Island will rise from $10.35 an hour to $10.50 on July 1.
Quebec
Fondaction formulas updated
Revenu Quebec has updated its formulas for calculating income tax source deductions for employees who buy Fondaction shares through payroll deductions between June 1 and the end of next May.
The revised formulas come as a result of the Quebec government changing the rate of a tax credit that applies for individuals who acquire class A or class B shares issued by Fondaction from 25 per cent to 20 per cent for shares acquired after May 31, 2015 and before June 1, 2016. For employers that use Revenu Quebec’s Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate income tax deductions, Revenu Québec now requires they subtract from the remuneration paid to an employee 100 per cent (instead of 125 per cent) of the amount withheld from the individual for the purchase of the shares.
Revenu Québec has also revised some of the formulas in its Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V) for employers who use this method to calculate income tax source deductions. It has included the adjusted formulas in publication PZ-972-V, Temporary Change in the Rate of the Tax Credit for the Acquisition of Shares Issued by Fondaction. See www.revenuquebec.ca/en/sepf/formulaires/pz/pz-972.aspx.
