Changes in payroll laws and regulations from across Canada
Alberta
New youth hiring rules planned
The Alberta government is preparing to implement new requirements for employers hiring employees under 18 years old. The changes are part of Employment Standards Code amendments passed last year.
With the amendments, the minimum working age will rise from 12 years to 13 years, although children under 13 will be allowed to work in “artistic endeavours” if a permit is issued.
Children 13 to 15 will be limited to work in artistic endeavours and “light” work, unless employment standards issues a permit for other work.
Children 13 to 14 will be prohibited from working between 9 p.m. and 6 a.m. or during school hours (excluding off-campus education programs). They will also only be allowed to work up to two hours outside of regular school hours on school days and up to eight hours on non-school days.
Employees who are 15 will not be permitted to work between 12:01 a.m. and 6 a.m. or during school hours (excluding off-campus education programs).
Children 16 to 17 will be allowed to work in any type of employment, with restrictions on hazardous jobs. Those working in retail or hospitality will only be allowed to work between 9 p.m. and 12 a.m. with adult supervision. Work between 12:01 a.m. and 6 a.m. will be prohibited.
In other sectors, overnight work will be allowed with parent/guardian consent and adult supervision.
Newfoundland and Labrador
New threshold for health levy
The Newfoundland and Labrador General Assembly passed legislation in May that will raise the threshold for determining which employers must pay the province’s Health and Post-secondary Education Tax from $1.2 million to $1.3 million, beginning Jan. 1, 2019.
The government proposed the increase in this year’s budget, saying the change would reduce the tax payable by up to $2,000 a year for employers subject to it. The tax rate will remain two per cent on annual payroll exceeding the threshold.
Nova Scotia
CRA revises forms
The Canada Revenue Agency (CRA) has updated form TD1NS and its accompanying worksheet to change the information for claiming the spouse or common-law partner amount and the amount for an eligible dependant.
The updated Nova Scotia Personal Tax Credits Return specifies that employees may claim $8,481 if their spouse or common-law partner or a dependent relative who lives with them has an annual net income of no more than $848.
If the spouse/common-law partner/dependent relative has an annual net income between $848 and $9,329, the employee may claim a partial amount, using the Worksheet for the 2018 Nova Scotia Personal Tax Credits Return (TD1NS-WS).
Previously, the TD1NS stated that if an employee’s spouse/common-law partner/dependent relative had an annual net income of no more than $8,481, the employee could claim $8,481 minus the spouse’s/common-law partner’s/dependent relative’s net income.
Ontario
Minimum pay rate rule established
Before proroguing for a June election, the Ontario legislature passed legislation that requires employers with government contracts in construction, building cleaning, and security to pay their employees at least a specified minimum wage rate.
Bill 53, the Government Contract Wages Act, 2018, received royal assent on May 8. It gives the government the authority to establish minimum government contract wages for building cleaning and security jobs in buildings that government entities own and occupy or lease, and for construction work provided under contracts with government entities.
The minimum wage schedules will be set by a director of government contract wages.
The legislation requires employers subject to it to record information on the dates and times that employees work, the applicable minimum government contract wages payable to the employees, and information about subcontracting.
Employers must also post information about minimum government contract wages in a conspicuous location in their workplace where employees and subcontractors are likely to see it.
Prince Edward Island
TD1PE changes take effect July 1
On July 1, the Prince Edward Island government implemented changes to some of the amounts that employees claim on form TD1PE, P.E.I. Personal Tax Credits Return.
In this year’s budget, Finance Minister Heath MacDonald announced the province would raise the basic personal amount claimed on the form from $8,160 to $8,660 for 2018. The spouse and equivalent-to-spouse amounts would increase proportionately.
The CRA has updated the TD1PE to incorporate the changes. Since they occur mid-year, the agency has prorated the basic personal amount to $9,160 from July 1 to Dec. 31 for employers who use Option 1 in its Payroll Deductions Formulas guide. It has not prorated the amount for employers who use Option 2.
Quebec
Bill would make tax changes official
Proposed legislation before Quebec’s National Assembly would amend provincial tax laws to incorporate some payroll-related measures that the government has announced over the last two years.
Bill 175, An Act to amend the Taxation Act, the Act respecting the Québec sales tax and other legislative provisions, which Finance Minister Carlos Leitão tabled on May 9, would increase a stock option deduction in the Taxation Act, that employees may claim under certain circumstances, from 25 per cent to 50 per cent for large businesses with a Quebec payroll of at least $10 million and a strong presence in the province. The change would apply for stock options granted after Feb. 21, 2017.
The bill would also eliminate a deduction in the Taxation Act that employees could claim for a home relocation loan taxable benefit. The government eliminated the deduction on Jan. 1. In addition, it would amend the sales tax act to phase out restrictions on claiming input tax refunds for large businesses, effective Jan. 1, 2018.
Revenu Québec has already implemented the measures.
Saskatchewan
New overtime rules for road builders
Recent amendments to Saskatchewan’s employment standards regulations exempts certain employees working in road building from the Saskatchewan Employment Act’s overtime requirements.
The changes, which took effect May 17, affect employees who build, repair, or maintain highways or who assist in those activities if they do the work outside of a city, town, village, or resort village.
The act’s overtime requirements stipulate that, unless there is a modified work arrangement or averaging agreement in place, employers must pay employees at an overtime rate of 1.5 times their regular wage rate for each hour or part hour that they work over 40 hours in a week or either eight or 10 hours in a day.
Eight hours applies if the employee’s work schedule is eight hours a day for no more than five days a week. Ten hours applies if the employee’s work schedule is 10 hours a day for no more than four days a week.
Instead of following these requirements, the amendments to employment standards regulations require employers to pay the employees overtime if they work more than 10 hours a day or 44 hours a week, whichever is greater.
In addition, the revised regulations stipulate that employers may not require or permit the employees to work or to be at their employer’s disposal for more than 16 hours on any day, unless there is an emergency.
If employees request it, employers must limit their hours to a maximum of 12 on any given day without fear of discrimination or discipline.
