Payroll vendors offer e-filing of ROEs

New technology streamlines process for filing records of employment with federal government

Every year, more than one million Canadian employers create eight million multiple-part records of employment (ROE) forms. Over the past few years, technology has greatly changed how these transactions are handled.

One of the newest developments on the scene is ROE secure automated transfer, also known as ROE SAT. This technology enables payroll vendors to submit ROEs electronically for customers. At Ceridian Canada Ltd., a Winnipeg-based business process outsourcing firm, more than 15,000 of the firm’s clients are already using the service and 5,000 more are set to come on board by the end of the month.

Employers must complete an ROE form whenever there is an interruption of earnings. Here’s a look at how technology has transformed the ROE process and the different ways employers can submit ROEs to the government.

Paper-based forms

The familiar paper-based ROE form, still in use today, consists of three parts with carbon paper in between. The employer fills out the form by hand or typewriter, then retains one copy with its payroll records for a minimum of six years. The employee receives the second copy and the third copy is mailed to Service Canada’s office in Bathurst, N.B. for maintenance in government records.

ROE Laser

With the advent of new technology, the federal government launched ROE Laser, a solution enabling businesses to use software to generate ROEs and print copies on regular printer paper.

Initial discussions with payroll providers explored the possibility of leveraging this solution for customers, but the work involved to develop an appropriate interface to vendors’ solutions proved to be inefficient. The government is now gradually phasing out ROE Laser, effective April 30, 2008, and businesses are invited to move to ROE Web or return to the paper-based form.

ROE Web

The next phase in development was ROE Web, developed by Human Resources and Social Development Canada (HRSDC) to help employers with the ROE creation process. ROE Web lets employers create, submit and print ROEs over the Internet as well as find ROEs from the past 11 years.

It also lets employers conduct bulk transfers of a large volume of their automated pay system to HRSDC.

ROE SAT

Although ROE Web was considered an option for payroll vendors, ROE SAT proved to be ideal. Similar in benefits to ROE Web, ROE SAT offers customers of payroll providers increased convenience through paperless administration. Electronic ROEs streamline the paper-intensive ROE production and distribution process, and the service is a likely first step towards electronic reporting per pay period and the eventual elimination of the paper ROE.

Ceridian worked closely with the government’s Service Canada branch to roll out ROE SAT data service to thousands of customers across the country. Compliance with regulatory requirements as well as data validation were two key components of the successful roll-out.

Feedback from customers who have been using the ROE SAT system has been positive. Julia Hall, finance director of a small business organization in Manitoba, said she welcomes the new electronic ROE system.

“It simplifies the workload, speeds up the process and not only saves valuable time, but saves on postage and stationery as well,” said Hall. “Given the increasingly complex legislative requirements that go along with payroll processing today, this simplified step helps to reduce that burden.”

The employee and employer copies of the ROE SAT are printed on ordinary white paper and delivered as part of the payroll package. Many customers also have the ability to preview the content of the ROE prior to submission as a result of preview functionality or online reporting solutions available through their payroll or human resource management system. They can also access and reprint the forms, which are maintained in archives.

ROE SAT and the ‘Best 14 Weeks’ pilot program

On Oct. 30, 2005, the federal government began a pilot project, known as the Best 14 Weeks. The three-year project targets 23 participating employment insurance (EI) regions and impacts employers with workers who live in those regions.

As part of the program, EI benefit rates are calculated based on the highest 14 weeks of insurable earnings over the last 52 weeks. The new benefit rate calculation created the need for the equivalent of 53 weeks of pay period information versus the current 27 weeks of information.

For employers participating in this pilot program, the three-part ROE paper form will not be modified. Employers who submit paper ROEs for employees living in a pilot region will be encouraged to complete the number of boxes in section 15C of the ROE that will give the equivalent of 53 weeks of pay. Since the paper form has a maximum period of 27 pay periods, employers with weekly payrolls can provide the additional payroll information by attaching it to the ROE.

Or, they can go with a 53-week ROE Laser format or register for the 53-week version of ROE Web. Employers currently using the 27-week version of ROE Web will not be obligated to adapt their systems. However, not doing so may lead to telephone calls from Service Canada for additional information.

Organizations using electronic ROEs are enjoying the advantages of one less filing step. Through the ROE Web and ROE SAT solutions, the ROE’s government copy is electronically and securely transmitted to Service Canada on behalf of the user. This means customers no longer have to mail the government copy to New Brunswick when they receive it.

Sandra Craven is director, product management at Ceridian Canada Ltd. in Winnipeg. She can be reached at (204) 975-8830 or [email protected].

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