Canadian Payroll Reporter

Payroll Reporter R adian a www.payrollreporter.com June 2014 Ontario's pension plan: A step Ontario's pension plan: A step forward or a footnote in history? forward or a footnote in history? Controversial ORPP proposal aims to address retirement income concerns Controversial ORPP proposal aims to address retirement income concerns not addressed by CPP, but leaves many unanswered questions for employers not addressed by CPP, but leaves many unanswered questions for employers BY SHEILA BRAWN It has been vilified by some as a job killer. Others have hailed it as a historic win for workers. On- tario Finance Minister Charles Sousa calls it "the first of its kind in Canada." The proposed Ontario Retire- ment Pension Plan (ORPP) has caught the attention of business leaders, union heads and politi- cians. At this point, the plan is only a proposal and, with a looming election in Ontario, there is no guarantee it will ever be imple- mented. Still, the plan highlights an interest that exists to find ways to ensure Canadians have enough money to live on when they retire. Sousa says two-thirds of workers in Ontario do not be- long to workplace pension plans and individuals are not saving enough on their own for retire- ment. He adds that Canada Pen- sion Plan (CPP) benefits are too low to meet the needs of middle- income earners and something more is needed. That is where the ORPP comes in. Ontario introduced the plan in its 2014 budget after failing, along with other provinces, to get the federal government to make changes to the CPP that would see contribution rates and retirement benefits increase. Ontario Employment Standards amendments pass Employees in Ontario will soon have access to three new job-pro- tected leaves. Effective Oct. 29, amendments to the Employment Standards Act, 2000, will allow employees with at least six con- secutive months of service with their employer to take the unpaid leaves for certain family responsibilities. Family Caregiver Leave will allow eligible employees to take up to eight weeks off work a year to provide care or support to a family member with a serious medical condition. A second leave, called HEARTBLEED FALLOUT pg. 2 Payroll, HR have big role to play in data security – it's not just IT's realm see SOME GIFTS on page 4 see LEGISLATIVE ROUNDUP on page 5 PM #40065782 Legislative Roundup Changes in payroll laws and regulations from across Canada NEWS IN BRIEF pg. 6 Financial executives becoming more involved in payroll; Alberta launches 'Work Right' campaign; Average weekly earnings rise slightly; Ottawa consults on target benefi t plans; Unemployment rate holds steady at 6.9% ASK AN EXPERT pg. 7 Can you use the bonus method to calculate tax on vacation pay? Payroll expert Annie Chong chimes in Credit: Chris Wattie (Reuters) Don't turn a gift Don't turn a gift into a penalty into a penalty Understanding and following the CRA's taxable Understanding and following the CRA's taxable benefi t rules for gifts and awards can help benefi t rules for gifts and awards can help payroll – and employees – avoid tax headaches payroll – and employees – avoid tax headaches BY SHEILA BRAWN Who doesn't like to receive a gift or an award? Unfortunately, the sweet taste of getting one from an employer can turn sour if the payroll department does not follow the Canada Revenue Agency's (CRA's) rules for giving gifts and awards. If a CRA audit finds an em- ployer did not properly assess a taxable benefit for a gift or award, the employee who re- ceived it may owe taxes and in- terest and the employer may face penalties and interest. To avoid this, payroll practi- see PROPOSED on page 3 Ontario Finance Minister Charles Sousa points out that two-thirds of workers in his province don't belong to workplace pension plans.

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