News in Brief

CPA calls for feds to act on its electronic T4 suggestion

TORONTO — Employers could save more than $100 million a year if the federal government would make electronic distribution of T4s the standard method of delivering the forms to employees, says the Canadian Payroll Association (CPA).

Current rules require employers to give employees two copies of the form by mail or in person. Employers can only send the form electronically if employees agree to receive it this way.

"Providing employers with the legislative change to provide electronic T4s to employees as the standard practice, rather than paper, would negate the need for distributing and storing millions of paper T4 slips for employees who do not require a paper copy and could provide employers annual savings of over $100 million," said CPA President Patrick Culhane in a news release.

The association says its recent survey shows 84 per cent of employees support receiving their T4s electronically. It adds that at an estimated cost savings of $5 per T4, employers could save more than $100 million a year by only giving paper T4s to the 16 per cent who do not want an electronic version.

The CPA says the change, which it has been recommending to the Canada Revenue Agency (CRA) and the federal Finance Department since 2011, would reduce the administrative burden on employers.

"Finance Canada and the CRA have been reviewing this suggestion for four years and it is now time to reduce the paper burden and red tape," says Rachel De Grâce, manager of Advocacy and Legislative Content with the CPA.



ORPP could hurt existing workplace retirement plans: Survey

TORONTO — Ontario’s proposed mandatory pension plan could have a negative impact on existing workplace retirement plans, according to the Canadian Life and Health Insurance Association (CLHIA).
It says a recent survey of 401 employers with defined contribution (DC) pension plans or group registered retirement savings plans (RRSPs) found that 78 per cent would likely reduce contributions to their plans if the provincial government implemented the Ontario Retirement Pension Plan (ORPP). Sixty-six per cent said their company might consider eliminating their plan if the ORPP is put in place.

The Ontario government tabled legislation to establish the ORPP in December and is holding consultations on the plan. It proposes to implement the plan in 2017. The ORPP would be structured much like the CPP, with mandatory contributions from employers and employees. The contribution rate would be no more than 1.9 per cent for employees and employers, for a combined rate of 3.8 per cent, for earnings up to $90,000.

If enacted, participation would be mandatory for employees and their employers if they do not take part in a comparable workplace pension plan.

The government has indicated that only defined benefit (DB) pension plans and target benefit multi-employer pension plans would be comparable plans. As a result, employers with DC plans and group RRSPs would be required to contribute to the ORPP.

Little change in average weekly earnings in November: StatsCan

OTTAWA — Average weekly earnings of non-farm payroll employees were $941 in November, up slightly from $939.98 in October, Statistics Canada reports. Statistics Canada revised the October numbers from the previously reported $942. On a year-over-year basis, weekly earnings increased 2.2 per cent in November.
The increase in weekly earnings during the 12 months to November reflected a number of factors, including wage growth, changes in the composition of employment by industry, occupation and level of job experience, as well as average hours worked per week. Non-farm payroll employees worked an average of 33 hours a week in November, up slightly from an average of 32.8 hours 12 months earlier.

Unemployment rate dipped to 6.6 per cent  in January: StatsCan

OTTAWA — Canada’s economy gained 35,000 jobs in January, lowering the unemployment rate to 6.6 per cent from 6.7 per cent in December, Statistics Canada reports. The agency revised its December figures, saying the unemployment rate was actually 6.7 per cent, not 6.6 per cent.

Part-time employment went up by 47,000 in January, while full-time employment was mostly unchanged.
Industries where employment increased in January included professional, scientific and technical services, as well as manufacturing and health care and social assistance. Employment was down in industries such as natural resources, public administration and in finance, insurance, real estate and leasing.

Newfoundland and Labrador continued to have the highest unemployment rate at 11.4 per cent, while Alberta and Saskatchewan had the lowest unemployment rate at 4.5 per cent.