Payroll Reporter
Can
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Can
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adian adian a
www.payroll-reporter.com
January 2016
see MANITOBA page 7
PM
#40065782
Legislative Roundup
Changes in payroll laws and regulations
from across Canada
News in Brief pg. 4
YWCHSB distributing surplus to
employers | New government cancels
HST rate increase| Average weekly
earnings up in September
Ask an expert pg. 5
Source deductions on sick
pay credits|Deductions on
wages |Determining province
or territory of employment
for payroll deductions
see EMPLOYERS page 2
2016 brings changes to
rates, rules for payroll
BY SHEILA BRAWN
PAYROLL It is a new year and for payroll that means implementing
new rates and rules while preparing for year-end reporting. To help
payroll departments stay up to date, here is a quick look at what is
new or upcoming for 2016:
Federal updates
CPP:
Maximum pensionable earnings: $54,900
Employer and employee contribution rate: 4.95 per cent
Basic exemption: $3,500
Maximum annual employer and employee contribution: $2,544.30
Federal
Government commits to CPP, EI
and income tax changes in throne speech
Canada's new Liberal government says it is committed to enhanc-
ing the Canada Pension Plan (CPP), strengthening the employment
insurance (EI) system and providing personal income tax cuts for
middle-class Canadians.
Governor General David Johnston announced the government's
plans in the speech from the throne on Dec. 4 but did not provide
details on the changes to CPP or EI, although the government later
tabled legislation to implement the income tax changes.
see OVERSEAS on page 6
Credit:
Chris
Wattie/REUTERS
Domestic violence pg. 3
In a fi rst for Canada, Manitoba proposes
job-protected time off work for domestic
violence victims in amending its
employment standards
Quebec moves to phase out
individual health contributions
Health-related
premiums, payroll
taxes entrenched in
other jurisdictions
BY SHEILA BRAWN
IN DECEMBER, Quebec passed legisla-
tion to phase out a mandatory health con-
tribution that is part of income tax source
deductions for employees. The phase-out
will occur over three years, starting in
2017.
"By eliminating the health contribu-
tion, the government is easing Quebecer's
tax burden and boosting their purchasing
power, which will fuel growth and eco-
nomic development," Finance Minister
Carlos Leitão said.
"When fully implemented, the elimina-
tion of the health contribution will benefit
close to 4.5 million taxpayers and put $1.7
Quebec Premier Philippe Couillard (left) speaks during a news conference with Prime Minister Justin
Trudeau at the First Ministers' meeting in Ottawa on Nov. 23.
