New government pay centre in N.B. • Payroll deduction formula for computers • New payday loans rates and rules enacted in Manitoba • New rules for temporary foreign workers
Ottawa announces new government pay centre in New Brunswick to process payroll for public servants
MIRAMICHI, N.B. — The Government of Canada is modernizing its 40-year-old pay system for public servants and consolidating pay services in a new centre of expertise in Miramichi, N.B. “The modernization of the government’s pay system and services will save taxpayers millions of dollars and create hundreds of jobs in Miramichi,” said Prime Minister Stephen Harper. “This is part of our government’s ongoing commitment to increase the effectiveness of public service operations and eliminate unnecessary costs.” This new plan will apply new technology to replace outdated and labour intensive information technology systems, saving money over the long run and ensuring more efficient service. The transformation of the government’s antiquated pay administration system and services will address concerns raised in the auditor general’s spring 2010 report and is expected to generate significant benefits. These include overall savings starting in 2016-2017 when the system is fully implemented, a full complement of 550 public works and government services staff at the centre by 2015-2016 and information technology jobs in the National Capital Region over a six-year period. The new pay system and centre of expertise will also ensure a sustainable and effective compensation service for public servants consistent with modern industry standards, the government said.
Payroll deduction formula for computers now available from CRA
OTTAWA — The new payroll deductions formulas for computer programs effective July 1, 2009, is now available on the Canada Revenue Agency website. This publication contains the formulas needed to determine federal, provincial (except Quebec) and territorial income taxes, Canada Pension Plan contributions and employment insurance premium deductions. The formulas also allow for the calculation of payroll deductions for special cases such as commission, pension income, bonuses and retroactive pay increases.
New payday loans rates and rules enacted in Manitoba
WINNIPEG — New maximum interest rates for payday loans and additional consumer protection measures will take effect Oct. 18, 2010, in Manitoba according to Family Services and Consumer Affairs Minister Gord Mackintosh. “These changes will offer consumers protection from high interest rates, unfair business practices and a cycle of debt that many people have trouble getting out of,” said Mackintosh. “We recognize there is a demand for these types of loans and have designed the legislation to ensure the strongest possible level of protection for consumers.” The proposed changes to Manitoba’s payday loans regulation were announced earlier this year. Now the federal government, which has authority to set interest rates, has issued an order to allow Manitoba to set rates for payday loans. The new maximum rate that can be charged for a payday loan is $17 per $100. The maximum amount of a loan can only be 30 per cent of a person’s next net pay. Manitoba’s rate is the lowest in the country among provinces that effectively allow payday loans. Additional regulations include:
•terms and conditions in loan agreements must be disclosed in a way that is clear and understandable to borrowers
•all fees are to be included in the cost of credit, whether or not they are optional
•the maximum fee for a replacement loan is five per cent
•lenders, including brokers, must be licensed and bonded
•Internet lenders will be regulated, ensuring they operate with the same rules as a lender with a storefront location
•written consent is required for a lender to verify a borrower’s employment
•lenders cannot make unauthorized withdrawals from a borrower's account or use rewards or incentives to entice borrowers to get a loan.
Federal government tightens rules for temporary foreign workers and the companies that employ them
OTTAWA — The federal government is tightening the regulations affecting live-in caregivers and temporary foreign workers, as well as the people who hire them. Effective April 1, 2011, the government will apply a more rigorous assessment of jobs for foreign workers to ensure offers are legitimate. That assessment will consider whether employers have followed the rules in the past before they can hire a nanny or temporary foreign worker. A bad track record could lead to a denial of the necessary permits to hire foreign workers. Employers who fail to meet their commitments to workers with respect to wages and working conditions will face a two-year prohibition on hiring foreign workers. There will also be a four-year limit on the amount of time a foreign worker can be employed in Canada. Once that limit is reached, the workers must return home and wait four years before they can work in Canada again. That limit does not affect eligibility for permanent residence. “The government is taking action to protect temporary foreign workers, including live-in caregivers, from potential abuse and exploitation,” said Immigration Minister Jason Kenney.
