Changes in payroll laws and regulations from across Canada
Canada
Bill would implement proposed small business EI tax credit
Federal Finance Minister Joe Oliver has tabled legislation to implement a proposed employment insurance (EI) tax credit that would effectively lower EI premiums for eligible small businesses in 2015 and 2016.
Oliver introduced Bill C-43, the Economic Action Plan 2014, No. 2, in Parliament on Oct. 23. At press time, the bill had not yet passed. It would implement provisions proposed in this year’s federal
budget, as well as other measures such as the EI change.
The EI amendment would allow the Canada Revenue Agency (CRA) to refund a portion of employer premiums that small businesses pay in 2015 and 2016 if the employer’s EI premiums are no more than $15,000 in the applicable year. The credit would be calculated as the difference between premiums paid at the legislated rate of $1.88 per $100 of insurable earnings and a reduced rate of $1.60 in 2015 and 2016.
In announcing the tax credit in September, Oliver said the CRA would automatically calculate the credit on a business’ tax return for eligible employers. Once calculated, the agency would apply the credit against any outstanding amounts the business owes the CRA and would then refund the remaining amount, if any, to the employer.
The change would not apply to employees or to other employers. All employees and employers will see lower EI rates in 2017 when the government implements a new mechanism for setting EI rates, said Oliver.
Bill proposes to make Remembrance Day statutory holiday
Remembrance Day may soon be a statutory holiday across Canada. The House of Commons is considering a private member’s bill to make the day a holiday in all jurisdictions, similar to Canada Day.
NDP Member of Parliament Dan Harris tabled Bill C-597, An Act to Amend the Holidays Act (Remembrance Day), in May.
The bill passed second reading on November 5 and is now before a legislative committee.
It is rare for a private member’s bill to become law, but Harris’ proposal passed with support from all parties in the House of Commons.
The bill must still pass third reading in the House and be approved by the Senate before it can become law.
Remembrance Day is already a statutory holiday under employment standards in all jurisdictions but Manitoba, Nova Scotia, Ontario and Quebec.
In Manitoba and Nova Scotia, Remembrance Day is a holiday under each jurisdiction’s Remembrance Day act. As a result, the holiday is treated in a different way than holidays under employment standards legislation.
In both jurisdictions, employers are not required to pay employees who do not work on Remembrance Day.
Reminder: Statutory holidays coming up
Canadian employers have a number of statutory holidays to keep in mind at this time of year.
Christmas falls on Thursday, Dec. 25. It is a statutory holiday in all Canadian jurisdictions.
For federally regulated employers and those in Ontario, Dec. 26, Boxing Day, is a statutory holiday.
New Year’s Day, which is on Thursday, Jan. 1, is a statutory holiday in all Canadian jurisdictions. In Quebec, Friday, Jan. 2 is a bank holiday.
Ontario
Legislature passes bill to index minimum wage
The provincial legislature has passed legislation requiring that future minimum wage changes be indexed to the consumer price index (CPI).
Bill 18, the Stronger Workplaces for a Stronger Economy Act, 2014 passed third reading on Nov. 6.
It will require the government to adjust minimum wage rates every year, beginning next October, by the percentage change in the Ontario CPI between the two previous years.
The minimum wage rates that apply for specific job categories (such as liquor servers) will increase proportionately to the general minimum wage.
The bill will require the government to announce minimum wage changes by April 1 of each year to give employers time to adjust to the increase. In addition, it will mandate the province to carry out a full review of minimum wage rates and the process for changing them every five years.
Bill 18 also amends the Employment Standards Act, 2000 to eliminate the $10,000 cap on the amount of wages an employee can recover from an employer.
It also increases the maximum time frame for employees to recover wages from six and 12 months to two years.
In addition, the amendments will give employment standards officers the authority to require employers to carry out self-audits to determine if they are complying with employment standards.
Bill 18 will also require all employers covered by the employment standards legislation to provide each employee with a copy of the Labour Ministry’s most up-to-date information poster on employment standards.
If an employee requests a copy in a language other than English, the employer will be required to contact the Ministry of Labour to find out if there is a poster in the requested language. If so, the employer will have to give a copy of it to the employee.
The amendments to the Employment Standards Act, 2000 include changes for temporary help agencies.
They will now be required to follow the act’s record-keeping requirements and keep records on the number of hours per day and per week that each assignment employee works for each client.
The agency will have to keep the records on file for three years after the day or week to which they pertain and ensure that they are available for inspection.
Clients of temporary help agencies will also be required to keep records on the number of daily and weekly hours that an assignment employee works for them.
The amendments will also change the liability for failing to pay wages to assignment employees.
Although temporary help agencies are primarily responsible for paying the wages, an agency’s client could be held jointly liable with the agency if the agency fails to pay wages (regular pay, overtime pay, premium pay and public holiday pay) during a pay period in which an assignment employee was working for the client.
Saskatchewan
WCB approves new policy for directors
The province’s Workers’ Compensation Board (WCB) has approved a new policy that makes it mandatory for directors on a company’s payroll to be covered under workers’ compensation.
Under the new policy, the board considers directors who report employment income on a T4 slip to be workers requiring workers’ compensation coverage.
Coverage is optional for other directors.
For employers already registered with the board, the policy will take effect Jan. 1, 2015.
The board advises that businesses can make any changes to coverage for directors on the WCB’s annual Employer’s Payroll Statement, due at the end of February.
For new employers, the policy applies as of Nov. 1, 2014.
Any companies that work in an industry where workers’ compensation coverage is mandatory must register with the WCB if they report employment income on a T4 slip for a director.
