Canadian Payroll Reporter

CPR_JULY_2013V2:Canadian Employer.qxd 13-06-14 12:42 PM Page 4 JULY 2013 NEWS IN BRIEF A LOOK AT NEWS, FACTS AND FIGURES SHAPING THE WORLD OF PAYROLL PROFESSIONALS Atlantic provinces examine changes to employment insurance HALIFAX —The Atlantic provinces are conducting a regional consultation and research initiative to jointly review the impact of the federal government's recent changes to the employment insurance (EI) program. The Atlantic Premiers' Panel on Impacts of Changes to Employment Insurance is comprised of a representative from each Atlantic province. The panel will work throughout the summer to analyze impacts of the changes in preparation for consultations in September. A final report by the Atlantic Premiers' Panel is anticipated in October. The report will provide a detailed analysis of the impacts of the EI reforms, including economic forecasts and the effects on workers, communities, and businesses, in particular seasonal industries. The final report will also include recommendations on next steps. Tax refunds used to pay down debt: Survey TORONTO — Canadians are conscientious and responsible with their taxes, according to a study released by BMO Nesbitt Burns. Ninety-four per cent of respondents said they file a personal income tax return every year. Nearly one-half of Canadians prefer preparing their own tax returns rather than relying on someone else — such as a tax professional or family and friends, the study also showed. This year, more than one-third of Canadians (35 per cent) will have used tax software to file their returns. More than one-half of Canadians (58 per cent) are not sure about how capital gains are taxed, while almost 4 two-thirds (62 per cent) are not knowledgeable about how dividend income is taxed, according to the study. The online survey was conducted with a sample of 1,002 Canadians between March 15 - 19. The margin of error for a probability sample of this size is plus or minus 3.1 per cent, 19 times out of 20. Canada April inflation well under forecast, Bank of Canada range OTTAWA (Reuters) — Cheaper gasoline and cars helped Canada's annual inflation rate fall dramatically in April to 0.4 per cent from one per cent in March, below expectations and well outside the Bank of Canada's target range of one to three per cent. It was the lowest since 0.1 per cent in October 2009. Prices fell by 0.2 per cent on a monthly basis from March to April. Core inflation, which excludes gasoline and other volatile items, dropped to 1.1 per cent from 1.4 per cent in March; on a monthly basis core prices rose 0.1 per cent, Statistics Canada said on May 17. The weak inflation data underlined how little pressure there is on the Bank of Canada to raise interest rates, despite its insistence that the next move will be up. The central bank said last month it did not expect overall or core inflation to return to the two per cent target before the mid-2015. Number of EI recipients down for fifth consecutive month: StatsCan OTTAWA — The number of people receiving regular employment insurance (EI) benefits continued to trend down for the fifth consecutive month in March, declining slightly by one per cent, or 5,200, to 523,700. Com- pared with a year earlier, the number of beneficiaries was down 8.1 per cent. All four Western provinces, as well as Newfoundland and Labrador, had fewer beneficiaries in March, while there was little change in the other provinces. The number of initial and renewal claims rose by three per cent, or 6,800, to 230,700 in March, partly offsetting the decline observed the previous month. Alberta (up 12.6 per cent) posted the largest percentage increase in claims in March with a 12.6 per cent increase, followed by New Brunswick with a 4.1 per cent increase Canadian pension funds total increases to $1.2 trillion: StatsCan OTTAWA — The market value of Canadian employer-sponsored pension funds totaled $1.2 trillion at the end of the fourth quarter, up 3.1 per cent from the third quarter. On an annual basis, the value of pension fund assets increased 9.3 per cent in 2012, following gains of 4.3 per cent in 2011 and 14.2 per cent in 2010. Pension fund investments in stocks grew four per cent in the fourth quarter, surpassing the 3.2 per cent gain in the value of shares on the Toronto Stock Exchange for the same period. The value of bond holdings increased 0.9 per cent, while investments in real estate assets grew 6.1 per cent and foreign investments increased in value 5.7 per cent. Slightly more than six million Canadian workers are members of employer pension plans. Of this group, five million workers are members of trusteed plans. The remaining one million members with employer pension plans are managed, principally, by insurance company contracts. Canadian HR Reporter, a Thomson Reuters business 2013

• Cover