Canadian Payroll Reporter

Payroll Reporter Can R Can R adian adian a www.payrollreporter.com November 2014 Are there diff erent ways employers can pay for EI? A look at history of premiums, suggestions for future BY SHEILA BRAWN eVerY fall employers and pay- roll professionals await the fed- eral government's announce- ment on Employment Insurance (EI) premium rates and maxi- mum insurable earnings for the coming year. While this year's proclama- tion that rates would be frozen through 2016 was not a surprise — it was part of the 2014 federal budget — Finance Minister Joe Oliver's announcement of a new tax credit for small business for 2015 and 2016 was unexpected. The credit, for businesses whose employer EI premiums are no more than $15,000 in 2015 and 2016, will be calculated as the difference between premi- ums paid at the legislated rate of 1.88 per cent and a reduced rate of 1.6 per cent in those two years. Since employers pay 1.4 times the legislated rate (unless they have a government-approved re- duced rate), the move would re- duce the employer premium rate (for employers outside of Que- bec) from 2.632 per cent to 2.24 per cent for small businesses. Whether a way to acknowl- edge the role small business plays in the economy or an at- tempt to win votes in an election year, the measure is a reminder the federal government can structure rates in different ways. In fact, over the history of the unemployment insurance system, business groups, think tanks and the government have looked at different options. It has been almost 75 years since Canada passed legislation Canada CLC amendments to new leaves have taken eff ect Federally regulated employees on a leave of absence for compas- sionate care, a critically ill child or the disappearance or death of a child under the Canada Labour Code are now allowed to interrupt the leave to take a sick leave or a work-related illness or injury leave if they fall ill. Amendments to the Code allowing for the changes were includ- ed in Bill C-31, the Economic Action Plan 2014 Act, No. 1, Par- see lEGIslATIVE on page 6 PM #40065782 Legislative Roundup Changes in payroll laws and regulations from across Canada News In Brief pg. 5 CRA consulting with businesses on reducing red tape, lack of sleep a workplace safety issue, little change in average earnings: Stats Can Ask an expert pg. 7 Calculating EI deductions, benefi ts for employees on compassionate care leave, fees in workers' comp assessments e dollars and sense of severance Payroll needs to know, follow the rules BY SHEILA BRAWN terMInAtInG an individual's employment can be a minefield. There is the human element involved in telling an employee and dealing with their reaction. There are also legal require- ments under employment stan- dards law. Payroll departments play an important role in help- ing organizations comply. Since payroll processes severance pay, it is important they understand the rules for calculating, paying and reporting it. Severance pay is different from termination pay (or wages in lieu of notice). Severance pay is paid when employees retire to recognize their service or for the loss of their job. Termination pay is paid to an employee who does not receive the amount Elections, revocations and the Canada Pension Plan pg. 3 see PAYroll on page 4 see MorE on page 2 Throughout EI's history business groups, think tanks and the government have looked for other options. Credit: Syda Productions/Shutterstock

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