Canadian Payroll Reporter

5 Canadian HR Reporter, a Thomson Reuters business 2014 CPR | September 2014 Legislative Roundup and British Columbia. • The act allows for more flexible rules for setting up different types of plans, such as target benefit plans. • The regulations clarify the roles and functions of the administrator, fund holder and participating employers. • The regulations provide rules for unlocking benefits in certain situations. More information is available at www.finance.alberta.ca/publica- tions/pensions/legislation.html. Reminder: Minimum wage rates rose Sept. 1. The general minimum wage rate in Alberta rose to $10.20 from $9.95 per hour. The rate for liquor servers increased to $9.20 from $9.05 per hour. When the government implemented the minimum wage for liquor servers three years ago, it announced the rate would stay at $9.05 until the general minimum wage reached $10.05 an hour. Once that happened, the rate for liquor servers would increase, but would be $1.00 an hour less than the general rate. The minimum wage rate for certain salespersons specified in provincial regulations rose to $406.00 from $397.00 per week. It in- cludes those selling automobiles, trucks, recreational vehicles, farm machinery and heavy duty construction equipment, as well as com- missioned salespersons (excluding route salespersons) who work away from their employer's workplace. For a full listing of salesper- sons covered, contact Employment Standards. The minimum rate for domestic employees who live in their em- ployer's residence increased to $1,937 from $1,893.00 per month. If an employer provides board and lodging to employees, as of Sept. 1, the employer may reduce the employee's wages below the mini- mum wage by a maximum of the following amounts: $4.41 per day for room and $3.35 per meal. Manitoba Reminder: Minimum wage going up Oct. 1 Effective Oct. 1, the minimum wage rate will rise to $10.70 from $10.45 per hour. The Manitoba government is also phasing in a new, higher mini- mum wage rate for security guards who hold a license issued under The Private Investigators and Security Guards Act. The aim of the increase is to help address high turnover rates in the industry. The guards are currently covered under the general minimum wage rate. Beginning Oct. 1, the rate will rise by 25 cents more than the general minimum wage increase, to $10.95 an hour. On Oct. 1, 2015, the rate will go up by 50 cents. On Oct. 1, 2016, it will increase 75 cents above the minimum wage. On Oct. 1, 2017, it will increase by another 75 cents above the general rate, resulting in a total mini- mum wage rate that will be $2.25 more per hour than the provincial Newfoundland and Labrador Reminder: Minimum wage rising Oct. 1 Effective Oct. 1, the minimum wage rate will rise to $10.25 from $10.00 per hour. The provincial government has announced the rate will go up again on Oct. 1, 2015 to $10.50. Last year when the government announced the changes, it said it expected to carry out a further review of the minimum wage in 2015. Ontario Income tax changes implemented The Ontario government passed legislation to implement personal income tax changes announced in the 2014 Ontario budget. The changes are retroactive to Jan. 1, but for source deduction purposes the Canada Revenue Agency (CRA) is implementing them Sept. 1. The changes affect employees who earn more than $150,000 in 2014. The province is lowering the taxable income threshold for the highest tax bracket from $514,090 to $220,000 and adding a new rate of 12.16 per cent on taxable income between $150,000 and $220,000. The ceiling for the tax bracket that applies for the 11.16 per cent rate is reduced from $514,090 to $150,000. As a result of the changes, the following brackets and rates apply from Sept. 1 to Dec. 31 for employers who use the CRA's Option 1 in its guide Payroll Deductions Formulas for Computer Programs for source deduction calculations: Taxable Income Range Tax Rate Constant $0.01 - $40,120.00 5.05% $0 $40,120.01 - $80,242.00 9.15% $1,645 $80,242.01 - $150,000.00 11.16% $3,258 $150,000.01 - $220,000.00 14.16% $7,758 $220,000.01 - $514,090.00 17.16% $14,358 $514,090.01 and over 13.16% $-6,206 For employers who use Option 2 the following brackets and rates apply from Sept. 1 to Dec. 31: Taxable Income Range Tax Rate Constant $0.01 - $40,120.00 5.05% $0 $40,120.01 - $80,242.00 9.15% $1,645 $80,242.01 - $150,000.00 11.16% $3,258 $150,000.01 - $220,000.00 12.16% $4,758 $220,000.01 and over 13.16% $6,958 The CRA says it will not penalize employers who cannot imple- ment the change for the beginning of September. "The CRA normally requires employers to withhold and remit income taxes in line with current rates, but because of the complexi- ties and timing of the Ontario budget measures it is recognized that these income tax changes will be implemented on a best-effort basis where practical, in full appreciation of the different payroll systems and administrative capacities of employers. Employers will not face penalties for failing to withhold as a result of the Ontario budget measures passed on July 24, 2014," the website says. For more information, see to the CRA's guide Payroll Deductions Formulas for Computer Programs (T4127), effective Sept. 1, at www. cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/t4127/menu-eng.html. Prince Edward Island Reminder: Minimum wage going up Oct. 1 Effective Oct. 1, the minimum wage rate will rise to $10.35 from $10.20 per hour. The government increased the rate to $10.20 on June 1, the first change in close to two years. Saskatchewan Reminder: Minimum wage going up Effective Oct. 1, the rate will rise to $10.20 from $10.00 per hour. The provincial government will annually index the minimum wage rate in the future. The indexation formula will be based on percentage changes to the consumer price index and the average hourly wage for the previous year. Changes will occur on Oct. 1, with the government announcing the rate change on or before June 30 each year. from LEGISLATIVE on page 1

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