A look at news, facts and figures shaping the world of payroll professionals
Ontario judge approves Scotiabank overtime settlement
TORONTO — An Ontario Superior Court judge has approved a $20.6 million revised settlement for about 1,600 Scotiabank employees who say they had to work overtime without being paid for it.
The settlement stems from a class-action lawsuit over unpaid overtime that was settled almost two years. The case began close to a decade ago. Since the 2014 settlement, the bank has paid about $18.7 million to individuals involved in the lawsuit.
The employees who will share in the $20.6 million are from a group of workers whose claims the bank rejected or reduced after the 2014 settlement.
IRS warns payroll departments about phishing scams
WASHINGTON — The Internal Revenue Service (IRS) is warning payroll and human resources professionals in the United States to be aware of a phishing email scheme aimed at getting personal employee information.
The IRS says the emails purport to be from company executives and request personal information on employees. It says the scheme has claimed several victims this year as payroll and HR offices mistakenly email payroll data, including W-2 tax forms that contain Social Security numbers and other personally identifiable information, to cybercriminals posing as company executives.
"This is a new twist on an old scheme using the cover of the tax season and W-2 filings to try tricking people into sharing personal data. Now the criminals are focusing their schemes on company payroll departments," said IRS commissioner John Koskinen.
The IRS says this type of phishing is called spoofing email. It can trick recipients because it contains the actual name of the company’s chief executive officer.
The email message may contain phrases such as:
• Kindly send me the individual 2015 W-2 (PDF) and earnings summary of all W-2s of our company staff for a quick review. • Can you send me the updated list of employees with full details (name, social security number, date of birth, home address, salary)?
• I want you to send me the list of W-2 copy of employees’ wage and tax statements for 2015. I need them in PDF file type. You can send it as an attachment. Kindly prepare the lists and email them to me ASAP.
"If your CEO appears to be emailing you for a list of company employees, check it out before you respond. Everyone has a responsibility to remain diligent about confirming the identity of people requesting personal information about employees," said Koskinen.
The IRS says it has seen about a 400 per cent surge in phishing and malware incidents so far this tax season and other reports of scams targeting others in a wider tax community.
Manitoba proposes new income tax rate
WASHINGTON — The Manitoba government is proposing to create a new personal income tax rate of 20.9 per cent for high-income earners, beginning Jan. 1, 2017.
In a fiscal update released in March, Finance Minister Greg Dewar said the new rate would apply to individuals whose annual taxable income exceeds $170,000. The province’s other personal income tax rates and brackets would not be affected.
At publication time, it was not known if the tax change would be implemented. The government is facing a provincial election on Apr. 19.
Newfoundland and Labrador government to review minimum wage
ST. JOHN’S — The Newfoundland and Labrador government says it plans to review the province’s minimum wage rate this year.
In its throne speech to open the first session of the 48th General Assembly in early March, the government said it would consult with labour organizations and employers to establish a formula that reflects changes to the cost of living. In recent years, a number of provincial governments have moved to include cost-of-living changes in their wage calculations.
The current minimum wage rate in Newfoundland and Labrador is $10.50 an hour.
Average weekly earnings up in December: StatsCan
OTTAWA — Average weekly earnings of non-farm payroll employees were $959 in December, up from $951. in November, Statistics Canada reports.
On a year-over-year basis, weekly earnings increased 1.7 per cent in December. The increase in weekly earnings during the 12 months to December 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 33.2 hours a week in December, up from the 32.9 hours reported for November.
Year-over-year earnings of non-farm payroll employees increased in all provinces but Alberta in December.
Unemployment rate up to 7.3 per cent in February: StatsCan
OTTAWA — Canada’s economy lost about 2,300 jobs in February, raising the country’s unemployment to 7.3 per cent from 7.2, Statistics Canada reports. It was the third consecutive month the rate has gone up by 0.1 percentage points and it brings the unemployment rate to its highest level since March 2013.
Industries where employment declined included health and social assistance, educational services, "other services," and natural resources.
Employment was up in construction, business, building and other support services, as well as in agriculture.
On a provincial basis, the unemployment rate went up in Alberta (7.9 per cent from 7.4), New Brunswick (9.9 per cent from 9.3), Nova Scotia (9.1 per cent from 8.5), Ontario (6.8 per cent from 6.7), Prince Edward Island (11.0 per cent from 9.5), and Saskatchewan (5.9 per cent from 5.6).
Newfoundland and Labrador continued to have the highest unemployment rate at 14.1 per cent, but it was down from 14.4 per cent in January. The unemployment rate also went down in Manitoba (six per cent from 6.1).
The unemployment rate remained steady in British Columbia at 6.6 per cent and in Quebec at 7.6 per cent.
In the United States, the U.S. Bureau of Labor Statistics reports that the American economy added 242,000 jobs in February, but the unemployment rate remained at 4.9 per cent.
