Ontario’s employment standards claims backlog improving • Majority of Canadians living paycheque to paycheque: CPA • Canadians failing to save for retirement: CPA • Government to expand automated processing for EI claims • Government holding EI rate setting consultations • B.C.’s return to PST must have smooth transition: CFIB • Marginal effective tax rates lowest in B.C.: Study • Payroll earnings increase slightly in June: StatsCan • Average weekly hours worked unchanged for third month: StatsCan
Ontario’s employment standards claims backlog improving
TORONTO — The backlog in Ontario’s employment standards claims should be eliminated by March 2012, according to the province’s Ministry of Labour. “Through our enhanced compliance strategy, we will continue reaching out to employers through a mix of education, outreach and enforcement to help ensure we stem any problems before they arise and enforce the legislation,” said Stephen Grier, acting director of the employment standards program. The ministry established a task force to eliminate a backlog of employment standards claims in 2010 and made program changes in January 2011. Since then the wait time for early resolution — when claims are assigned to an officer — has dropped from 7.1 months to about three days and the backlog has been reduced by more than two-thirds, the ministry said.
Majority of Canadians living paycheque to paycheque: CPA
TORONTO — The number of Canadians living paycheque to paycheque has improved slightly in the last two years, according to a survey from the Canadian Payroll Association (CPA). The survey reports 57 per cent of Canadians said they would be in trouble if they missed one paycheque, a slight improvement from the last two years when 59 per cent said they were living paycheque to paycheque. It’s the third time the CPA has done the survey, with 2,070 people responding this year. The percentage of people living without savings in 2011 was higher for younger Canadians aged 18 to 34 at 63 per cent and single parents at 74 per cent. The regions with the highest percentage of workers living paycheque to paycheque were Ontario (60 per cent) and the Atlantic provinces (64 per cent).
Canadians failing to save for retirement: CPA
TORONTO — Many Canadians are struggling to save for retirement and to make ends meet, according to a survey from the Canadian Payroll Association (CPA). Four out of 10 of Canadians said they now expect to retire later than they previously planned. The primary reason, cited by 40 per cent of respondents, was “I’m not saving enough money for retirement.” Almost 74 per cent of employees said they have saved less than one-quarter of their retirement savings goal. One-half of employees across the country reported they are saving five per cent or less of their net pay. This is well below the 10 per cent of net pay financial planning experts generally recommend as a retirement savings rate. While 60 per cent said they are trying to be better savers, more than one-half of these individuals reported they have been unable to do so. The remaining 40 per cent of Canadians said they were not trying to save more. Respondents on the West coast (55 per cent) and in the Prairie provinces (53 per cent) have been marginally better at saving; whereas single parents (71 per cent) and single individuals (65 per cent) have stated they have not been able to save as much. Almost two-thirds, or 63 per cent of respondents, felt that they would need more than $750,000. Younger people 18 to 34 are concerned they will need to save more to retire, according to the survey.
Government to expand automated processing for EI claims
OTTAWA — Human Resources and Skills Development Canada (HRSDC) recently announced measures to increase automation in the employment insurance (EI) claims process. Historically, EI was designed and administered as an entirely paper-based program. Changes in EI processes and delivery have had an administrative savings of about 30 per cent, the government said. The goal is to expand the automated processing of claims from the current level of 44 per cent to 70 per cent, over three years. Service Canada currently processes EI applications and claims at 120 sites across the country. Under the new service delivery model, this administrative processing will transition over three years to 22 sites. No Service Canada offices are closing as a result of these measures. In-person, front counter services will not be affected, according to the HRSDC.
Government holding EI rate setting consultations
OTTAWA — The federal government is seeking public opinion on how to improve the employment insurance (EI) premium rate-setting mechanism. A web-based consultation process will focus on how the EI rate-setting mechanism can be improved to ensure more stable and predictable rates, while also ensuring the EI program breaks even over time, avoiding large cumulative surpluses or deficits and maintaining a transparent rate-setting process. In particular, the government is seeking the views on questions including: What is a reasonable amount of time in which the EI program should be expected to break-even? Last year, the government announced that it would limit possible increases in EI premiums to five cents per $100 of insurable earnings for 2011 and 10 cents for later years. The government is looking for written recommendations which can be submitted online: http://www.fin.gc.ca/activty/consult/eiprs-etcac-eng.asp. There will also be a number of roundtable discussions between parliamentary secretaries and invited key stakeholders and experts will take place in the coming months. The government is accepting comments until Nov. 30.
B.C.’s return to PST must have smooth transition: CFIB
VANCOUVER — British Columbia’s government should focus on a smooth and clearly communicated transition back to the PST/GST, said the Canadian Federation of Independent Business (CFIB). The province introduced the HST, which blended the seven per cent provincial sales tax with the five per cent federal GST, on July 1, 2010. But the blended tax will be scrapped after 54 per cent of voters said to get rid of it in a recent referendum. The CFIB wants to see the return of the BC Taxpayer Fairness and Service Code for PST which recognized business owners’ rights to fair treatment, timely appeals and dispute resolution in their dealings with PST officers. The code recognizes business owners‘ right to complete, accurate, clear and timely information when navigating complex PST rules, said the organization. The code should further protect business owners by having provincial tax officers provide written answers to written questions that are binding if the business owner acts on the advice given, said the CFIB. Clear communication around the timing of a transition back to the PST is essential, according to the organization.
Marginal effective tax rates lowest in B.C.: Study
TORONTO — British Columbia fairs better than the rest of the West when it comes to the impact of taxes and the withdrawal of benefits and credits on personal incomes, according to a C.D. Howe Institute report. The marginal effective tax rate (METR) on personal income measures the impact, on take-home pay, of federal and provincial income taxes combined with the impact of reductions and clawbacks of income-tested tax credits and benefits, according to the study. Such income-tested credits and benefits mostly target financial support to low- and middle-income families with children, or to low-income seniors. As family incomes rise past prescribed thresholds, clawbacks and reductions begin, raising the METR on each dollar of incremental income, the study said. The study found the tax impact on each dollar of extra income for families with children in Western provinces is lowest in British Columbia and Alberta, followed by Saskatchewan and Manitoba. The report also found that British Columbians enjoy the lowest average METR in Canada, with Alberta enjoying the second-lowest METRs for families with children, at 34 per cent. But Alberta’s average METRs for families with seniors, at 41 per cent, is higher than in the rest of Canada. For the most part, the Western provinces appear to have done a better job than other provinces at keeping down METRs for working families. This is especially true for British Columbia, which stands out as the province where taxpayers, whether working or retired, are typically exposed to the lowest METRs, according to the study.
Payroll earnings increase slightly in June: StatsCan
OTTAWA — Average weekly earnings for non-farm payroll employees increased 0.3 per cent from May to June, rising to $876.27. That’s an increase of three per cent when compared to June 2010, according to Statistics Canada. The increase in average earnings is due to a number of factors including wage growth and changed in the composition of employment by industry, occupation and level of job experience. Average weekly earnings were up in every province in the 12 months leading up to June 2011, led by growth in Alberta and British Columbia. In Alberta, average weekly earnings in June were $1,041.45 a five per cent increase from June 2010. Alberta has recorded year-over-year growth in earnings above the national average since March 2012. The slowest growth was in Saskatchewan and Prince Edward Island.
Average weekly hours worked unchanged for third month: StatsCan
OTTAWA — At 32.9 hours, average weekly hours worked in June were unchanged for the third consecutive month. The average work week was also unchanged from June 2010. While overall average weekly hours were unchanged from June 2010, there were notable year-over-year increases in utilities at 3.1 per cent, finance and insurance at 1.5 per cent and health care and social assistance at 1.3 per cent. There were declines in arts, entertainment and recreation which saw a 4.6 per cent decrease as well as in retail trade where the decline was 1.4 per cent.
TORONTO — The backlog in Ontario’s employment standards claims should be eliminated by March 2012, according to the province’s Ministry of Labour. “Through our enhanced compliance strategy, we will continue reaching out to employers through a mix of education, outreach and enforcement to help ensure we stem any problems before they arise and enforce the legislation,” said Stephen Grier, acting director of the employment standards program. The ministry established a task force to eliminate a backlog of employment standards claims in 2010 and made program changes in January 2011. Since then the wait time for early resolution — when claims are assigned to an officer — has dropped from 7.1 months to about three days and the backlog has been reduced by more than two-thirds, the ministry said.
Majority of Canadians living paycheque to paycheque: CPA
TORONTO — The number of Canadians living paycheque to paycheque has improved slightly in the last two years, according to a survey from the Canadian Payroll Association (CPA). The survey reports 57 per cent of Canadians said they would be in trouble if they missed one paycheque, a slight improvement from the last two years when 59 per cent said they were living paycheque to paycheque. It’s the third time the CPA has done the survey, with 2,070 people responding this year. The percentage of people living without savings in 2011 was higher for younger Canadians aged 18 to 34 at 63 per cent and single parents at 74 per cent. The regions with the highest percentage of workers living paycheque to paycheque were Ontario (60 per cent) and the Atlantic provinces (64 per cent).
Canadians failing to save for retirement: CPA
TORONTO — Many Canadians are struggling to save for retirement and to make ends meet, according to a survey from the Canadian Payroll Association (CPA). Four out of 10 of Canadians said they now expect to retire later than they previously planned. The primary reason, cited by 40 per cent of respondents, was “I’m not saving enough money for retirement.” Almost 74 per cent of employees said they have saved less than one-quarter of their retirement savings goal. One-half of employees across the country reported they are saving five per cent or less of their net pay. This is well below the 10 per cent of net pay financial planning experts generally recommend as a retirement savings rate. While 60 per cent said they are trying to be better savers, more than one-half of these individuals reported they have been unable to do so. The remaining 40 per cent of Canadians said they were not trying to save more. Respondents on the West coast (55 per cent) and in the Prairie provinces (53 per cent) have been marginally better at saving; whereas single parents (71 per cent) and single individuals (65 per cent) have stated they have not been able to save as much. Almost two-thirds, or 63 per cent of respondents, felt that they would need more than $750,000. Younger people 18 to 34 are concerned they will need to save more to retire, according to the survey.
Government to expand automated processing for EI claims
OTTAWA — Human Resources and Skills Development Canada (HRSDC) recently announced measures to increase automation in the employment insurance (EI) claims process. Historically, EI was designed and administered as an entirely paper-based program. Changes in EI processes and delivery have had an administrative savings of about 30 per cent, the government said. The goal is to expand the automated processing of claims from the current level of 44 per cent to 70 per cent, over three years. Service Canada currently processes EI applications and claims at 120 sites across the country. Under the new service delivery model, this administrative processing will transition over three years to 22 sites. No Service Canada offices are closing as a result of these measures. In-person, front counter services will not be affected, according to the HRSDC.
Government holding EI rate setting consultations
OTTAWA — The federal government is seeking public opinion on how to improve the employment insurance (EI) premium rate-setting mechanism. A web-based consultation process will focus on how the EI rate-setting mechanism can be improved to ensure more stable and predictable rates, while also ensuring the EI program breaks even over time, avoiding large cumulative surpluses or deficits and maintaining a transparent rate-setting process. In particular, the government is seeking the views on questions including: What is a reasonable amount of time in which the EI program should be expected to break-even? Last year, the government announced that it would limit possible increases in EI premiums to five cents per $100 of insurable earnings for 2011 and 10 cents for later years. The government is looking for written recommendations which can be submitted online: http://www.fin.gc.ca/activty/consult/eiprs-etcac-eng.asp. There will also be a number of roundtable discussions between parliamentary secretaries and invited key stakeholders and experts will take place in the coming months. The government is accepting comments until Nov. 30.
B.C.’s return to PST must have smooth transition: CFIB
VANCOUVER — British Columbia’s government should focus on a smooth and clearly communicated transition back to the PST/GST, said the Canadian Federation of Independent Business (CFIB). The province introduced the HST, which blended the seven per cent provincial sales tax with the five per cent federal GST, on July 1, 2010. But the blended tax will be scrapped after 54 per cent of voters said to get rid of it in a recent referendum. The CFIB wants to see the return of the BC Taxpayer Fairness and Service Code for PST which recognized business owners’ rights to fair treatment, timely appeals and dispute resolution in their dealings with PST officers. The code recognizes business owners‘ right to complete, accurate, clear and timely information when navigating complex PST rules, said the organization. The code should further protect business owners by having provincial tax officers provide written answers to written questions that are binding if the business owner acts on the advice given, said the CFIB. Clear communication around the timing of a transition back to the PST is essential, according to the organization.
Marginal effective tax rates lowest in B.C.: Study
TORONTO — British Columbia fairs better than the rest of the West when it comes to the impact of taxes and the withdrawal of benefits and credits on personal incomes, according to a C.D. Howe Institute report. The marginal effective tax rate (METR) on personal income measures the impact, on take-home pay, of federal and provincial income taxes combined with the impact of reductions and clawbacks of income-tested tax credits and benefits, according to the study. Such income-tested credits and benefits mostly target financial support to low- and middle-income families with children, or to low-income seniors. As family incomes rise past prescribed thresholds, clawbacks and reductions begin, raising the METR on each dollar of incremental income, the study said. The study found the tax impact on each dollar of extra income for families with children in Western provinces is lowest in British Columbia and Alberta, followed by Saskatchewan and Manitoba. The report also found that British Columbians enjoy the lowest average METR in Canada, with Alberta enjoying the second-lowest METRs for families with children, at 34 per cent. But Alberta’s average METRs for families with seniors, at 41 per cent, is higher than in the rest of Canada. For the most part, the Western provinces appear to have done a better job than other provinces at keeping down METRs for working families. This is especially true for British Columbia, which stands out as the province where taxpayers, whether working or retired, are typically exposed to the lowest METRs, according to the study.
Payroll earnings increase slightly in June: StatsCan
OTTAWA — Average weekly earnings for non-farm payroll employees increased 0.3 per cent from May to June, rising to $876.27. That’s an increase of three per cent when compared to June 2010, according to Statistics Canada. The increase in average earnings is due to a number of factors including wage growth and changed in the composition of employment by industry, occupation and level of job experience. Average weekly earnings were up in every province in the 12 months leading up to June 2011, led by growth in Alberta and British Columbia. In Alberta, average weekly earnings in June were $1,041.45 a five per cent increase from June 2010. Alberta has recorded year-over-year growth in earnings above the national average since March 2012. The slowest growth was in Saskatchewan and Prince Edward Island.
Average weekly hours worked unchanged for third month: StatsCan
OTTAWA — At 32.9 hours, average weekly hours worked in June were unchanged for the third consecutive month. The average work week was also unchanged from June 2010. While overall average weekly hours were unchanged from June 2010, there were notable year-over-year increases in utilities at 3.1 per cent, finance and insurance at 1.5 per cent and health care and social assistance at 1.3 per cent. There were declines in arts, entertainment and recreation which saw a 4.6 per cent decrease as well as in retail trade where the decline was 1.4 per cent.
