Canadian Payroll Reporter

5 Canadian HR Reporter, a Thomson Reuters business 2014 CPR | August 2014 Legislative Roundup rates in the industry. Effective Oct. 1, the minimum wage rate for security guards who hold a licence issued under the Private Inves- tigators and Security Guards Act will be $10.95 per hour. On Oct. 1, 2015, the rate will go up by 50 cents more than the provincial minimum wage rate. One year later, it will increase 75 cents above the minimum wage. On Oct. 1, 2017, the rate will increase by another 75 cents above the general minimum wage rate, resulting in a minimum wage rate that will be $2.25 more per hour than the provincial minimum wage rate. Nova Scotia February holiday 'Heritage Day' The province's new holiday in February will be called Nova Scotia Heritage Day, Labour and Advanced Education Minister Kelly Re- gan recently announced. Late last year, the provincial legislature passed legislation to es- tablish a holiday on the third Monday in February, beginning on Feb. 16, 2015. The government asked students across the province to suggest a name for the holiday. Heritage Day will recognize people and communities that have made significant cultural and historical contributions to the prov- ince. For 2015, the day will honour civil rights activist Viola Des- mond. Ontario Sousa retables May budget Ontario Finance Minister Charles Sousa re-tabled in July the provincial budget he first presented in May that triggered a recent provincial election for the minority Liberals, which they won. The budget proposes to implement a new personal income tax rate of 12.16 per cent on taxable income between $150,000 and $220,000. It proposes lowering the taxable income threshold for the highest tax bracket from $514,090 to $220,000. It would also lower the ceiling for the bracket that applies for the 11.16 per cent rate from $514,090 to 150,000. The other rates and tax brackets would stay the same. Current Taxable Income Ranges Current Rates (per cent) Proposed Taxable Income Ranges Proposed Rates (per cent) $0.01 – $40,120.00 $40,120.01 – $80,242.00 $80,242.01 – $514,090.00 $514,090.01 and over 5.05 9.15 11.16 13.16 $0.01 – $40,120.00 $40,120.01 – $80,242.00 $80,242.01 – $150,000.00 $150,000.01 – $220,000.00 $220,000.01 and over 5.05 9.15 11.16 12.16 13.16 The new income thresholds would not be adjusted each year for inflation, as is currently the case. At press time, the Canada Revenue Agency had not yet an- nounced how it would implement the changes for source deduc- tions purposes for the remainder of the year. The budget also included the following proposals: • Ontario Retirement Pension Plan: The province proposes to implement a new mandatory provincial pension plan called the Ontario Retirement Pension Plan (ORPP), beginning in 2017. The plan would be for individuals who do not have a workplace pension plan. It would be funded by mandatory contributions from employ- ers and employees required to enroll in the plan. The contribution rate is expected to be 1.9 per cent for employers and employees, for a combined rate of 3.8 per cent. Contribution rates would be phased in over two years. The annual maximum earnings threshold would be $90,000. The threshold would rise each year, consistent with increases to the maximum pensionable earnings for the Canada Pension Plan (CPP). There would be an exemption threshold for lower-income workers similar to the $3,500 CPP exemption. The government says it will carry out consultations on the plan before implementing it. It also says it will work with governments in other jurisdictions to see if the plan could be expanded to those provinces. • Minimum Wage: The budget reiterated the government's plan to index the minimum wage rate to inflation beginning in October 2015. The government raised the minimum wage rate to $11 per hour on June 1. • PRPPs: The budget proposes to table legislation this fall to allow for the creation of pooled registered pension plans (PRPPs) in On- tario. The structure of the plans would be similar to those allowed under federal legislation. Participation would be voluntary. • Pensions: The budget proposes changes to the Pension Benefits Act to create a framework allowing a single employer pension plan to convert to a jointly sponsored pension plan. Bill proposes minimum wage and other labour-related changes The Ontario government has re-introduced legislation to index the province's minimum wage rate and amend labour-related laws to increase protection for workers, particularly temporary foreign workers and employees working for temporary help agencies. The government tabled bills to implement these changes in the last legislative session, but the legislature was dissolved for a provin- cial election before the government could pass them. Bill 18, the Stronger Workplaces for a Stronger Economy Act, 2014, which Labour Minister Kevin Flynn presented on July 16, in- cludes the following amendments: • Beginning Oct. 1, 2015, the general minimum wage rate would be adjusted every year by the percentage change in the Ontario con- sumer price index between the two previous years. The minimum wage rates that apply for specific job categories (such as liquor serv- ers) would increase proportionately to the general minimum wage. The bill would also require the government to announce minimum wage changes by April 1st of each year. • All employers covered by the Employment Standards Act, 2000, would be required to provide each employee with a copy of the La- bour Ministry's most up-to-date information poster on Employ- ment Standards. • A $10,000 ceiling that currently applies on the amount of wages an employee can recover from an employer would be eliminated. • The maximum timeframe for employees to recover wages would increase from six and 12 months to two years. Québec Province proposes changing overtime threshold The provincial Finance Ministry is proposing to lower the thresh- old from three hours to two hours for excluding overtime-related meal and transportation allowances from income as of the 2014 tax year. The ministry announced the proposal in its Information Bulletin 2014-7, Changes to Various Measures concerning Individuals and Businesses (July 11, 2014). Currently, if employers provide meals, transportation home or an allowance or reimbursement for them for employees who work overtime at their request, the amount of the benefit or allowance does not have to be included in the employees' income if the over- time lasts for at least three consecutive hours and occurs only oc- casionally and infrequently. from LegisLative RoUnDUp on page 1

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