Payroll LawPresented by:

Wade Farquhar

9:00 Seminar begins10:00 Ten minute break11:00 Ten minute break12:00 Lunch break 1:00 Afternoon session begins 2:00 Ten minute break 3:00 Ten minute break 3:50Complete evaluations distributed 4:00Dismiss

Today’s Schedule:

Link for this and other presentations:

www.LeanTeams.cawww.Slideshare.net/leanteams

Withholdings and remittances.

What we will cover today:

Employment standards that affect payroll.

Situations that lead to penalties and interest.

Payroll documentation and record retention.

Bonus material.

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1

Introductory Information.

Determine worker status.1Opening a payroll accountHiring employeesCalculating compensationCalculating and remitting deductions

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Payroll Basics

Completing and filing returns

Employer’s Responsibil

ity

Specific to the Payroll Departmen

t6

Important Principles• Ignorance is not bliss. • The company is always guilty until proven

innocent.• Administratively impossible does not mean

unenforceable.If a law or regulation exists you are required to:• Know about it.• Do something about it.• Administer it per instruction, if they are provided.

The Risk Continuum

Danger ZoneNeglect

ProactivitySafety Zone

Federal• Industries that are inter-provincial or international

in scope.• Includes: banking, transportation, radio and

television, companies doing business in two or more provinces.

• Additional survey and reporting requirements here.

Provincial• Trade unions, hours of work, work comp, paid

vacations.• Relationship between employer and employee.Territory• Under federal jurisdiction unless otherwise stated.

Three Jurisdictions

• Banks • Marine shipping, ferry and port services • Air transportation, including airports• Railway and road transportation • Canals, pipelines, tunnels and bridges • Radio and television broadcasting • Grain elevators, feed and seed mills • Uranium mining and processing • Businesses dealing with the protection of fisheries • Private businesses necessary to the operation of a

federal act • Many First Nation activities • Crown corporations

Federally Regulated Industries

• Canadian employers are either federally or provincially regulated, but not both.

• The primary industry within which a business operates determines its jurisdiction.

• Industries that are inter-provincial and/or international in scope are federally regulated.

• All other businesses are provincially regulated.

Splits in Jurisdictions Summary

Recordkeeping

Employers are required to keep the following for all employees:• Employee name, DOB, occupation, telephone number

and address.• Name or brief job description.• Date of commencement and termination of

employment.• Employee’s wage rate (hourly, weekly, monthly, or

otherwise).• Total wages paid per pay period.• Beginning and ending work times, as well as meal break

times.• Daily time and attendance records.• Dates of all statutory holidays taken and pay received.• Dates of annual vacation taken and pay received.• These records must cover the last five years.

Recordkeeping Requirements

Statement of WagesEmployers must provide the following information on each statement:• The statement of wages must be separate from the

cheque.• Name of employee.• Beginning and end dates for the pay period.• Hours for which payment is being made.• The employee’s wage rate.• Amount paid for wages, incl. overtime or any other

special pay.• Category of employment.• Total wages being paid.• An itemized list of all deductions and amounts.• The actual amount being paid.

Retention RequirementsEmployers are required to retain all employee information as follows:• Two years after termination of

employment.• Taxes and payroll-related items: Six years

from the end of the current tax year.

Form TD1s

Who should complete this form? • Those with a new employer or payer.• Those who wish to change amounts from previous

claimed.• Those who can claim the deduction for living in a

prescribed zone.• Those who want to increase the amount of tax deducted

at source.

People do not need to complete the provincial TD1 unless they wish to claim more than the basic personal amount.

Individuals do not need to complete a new TD1 every year. If a change happens, they must complete a new form withing seven days.

TD1 Form

Which form should be used?• Employees who claim more than the basic personal

amount have to complete the provincial TD1. • Pensioners who claim more than the basic personal

amount have to complete the provincial TD1. • Individuals paid by commissions and who claim

expenses can elect to use Form TD1X, to take into consideration the expenses in the calculation of their income tax.

• Fishers who want to have income tax deducted from their income should use Form TD3F

• First Nations who want to determine if their income is taxable should complete Form TD1-IN,

TD1 Form

Labour and Employment IssuesFederal Labour StandardsSaskatchewan Employment Standards

Professional OrganizationsCanadian Payroll Association

CRA ResourcesEmployer’s Guide to Deductions and RemittancesEmployer’s Guide to Taxable Benefits and AllowancesTaxable/Non-taxable gifts and awards source info.Correcting remittance errors

Primary Sources for Today’s Discussion

ContractorOr

Employee

CRA 4-point Test:1. Control2. Ownership of

tools/equipment3. Chance of profit or risk of

loss4. Integration into the

company

Determining Worker Status

BehavioralFinancial

Control Financial ResponsibilityRelationship of the parties

$65k/

year

TaxTotal Income

Employee: IT Manager

DisposableIncome

Transport PhonesHousing VacationUtilitiesFood

TaxIncome DisposableIncome

Transport PhonesHousing VacationUtilities Food

Contractor: IT Consultant

Personal Expenses

Independent Contractor• Contract for

Services Agreement• Proof of bona-fide

business• Invoices or cash

receipts.

Employee• Employment agreement,

contract or job description

• TD1 or TP1015.3-V• Time or tracking

records.• Payroll records of

payments, withholdings, remittances

• T4 slips

Recordkeeping Requirements

Employment Standards

• Work schedule: 8 hours per day, 40 hours per week.

• Averaging work time: Allowable within limits.• Pay (minimum wage): $10.50/hr.• Termination: See termination chart.• Vacation: 6% of gross wages for first 10

years.• Overtime: Daily and weekly overtime

allowed.• Holidays: 10 mandatory public holidays.

Employment Standards Summary

• Minimum wage: $10.50• Minimum wage applies to all employees

regardless of how they are paid – hourly, salary, commission or other incentive basis.

• All employees must keep an accurate time record.

• There are certain exempt employees and industries.

• For information about other provinces see the Minimum wage database.

Minimum Wage

“Salaried” Employees

•Managers, superintendents, and employees who carry out management functions are exempted from hourly remuneration (50% rule applies).

• Architects, dentists, engineers, lawyers, and other specialized positions are also excluded. See the list of excluded positions here.

Who Is Allowed To Be Salaried Without Overtime?

Hiring and termination of employees.1Managing work output of other employees.Creating or interpreting policies.Making budgetary decisions.Committing the company’s financial resources.

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Management Duties:

• Clerical, manual labour• Directed work• Routine, repetitive• Front line workers• Support staff

Non Management Duties

Hiring/firing

Budgetary Decisions

Creating policies

Managing employees

Management Duties:

Non Management Duties

Employee is paid salaried but does not qualify for overtime exemption.

• Employee salary is for all non-overtime hours up to 40.

• Sharon’s salary is $500 per week. One week she works 46 hours.

• $500 ÷ 40 = $12.50• $12.50 x 1½ = $18.75• $18.75 x 6 = $112.50• $500 + $112.50 = $612.50

Salaried – with Overtime (Purple Squirrel)

Hours of Work Rules

• 8 per day, 5 days per week; or 10 hours per day four days per week.

• 40 per week, not to exceed 44 scheduled hours.• An employee who reports for work must be paid for 3

hours of work. • For information on industries that are exempt from

overtime rules see Canadian Master Labour Guide ¶6350.

Hours of Work Rules

Overtime• Employees are paid 1.5 times their regular

wage for any time worked beyond hours of work maximums.

• Modified work arrangements (MWAs) are available, but require approval. Click here.

• What is the problem with the phrase, “Overtime will not be paid unless it is approved prior to being worked.”?

SUN MON TUES WED THUR FRI SATHours 8 10 6 13Regular 8 8 6 81½ 2 5

Total hours worked in week: 37Hours at time-and-a-half: 7

After working 8 hours per day an employee must be paid time-and-a-half. This applies even if the employee works less than 40 hours in a week.

Sun Mon Tues Wed Thurs Fri SatHours 8 7 8 8 7 7Regular 8 7 8 8 7 2

1½ 5

Total hours worked in the week: 45Hours paid at time-and-a-half: 5

Required Rest Periods• Employees are required to have at least 1

day of rest per week if they work 20+ hours per week.

• Retail employers with more than 10 employees should grant employees who work 20+ per week 2 days off.

• An employee is entitled to an unpaid 30 minute lunch break for every 5 consecutive hours of work.

• If an employer grants a rest period, that period is paid time.

RULES:• Be in writing.• Specify number of weeks over which hours will

be averaged.• Specify work schedule for each day.• Specify start and end date of agreement.• Be signed by employer and employee one week

before start date.• Cannot last more than one year.

• Hours scheduled must not average more than 40 per week over the period of the agreement.

• Averaging agreements are limited to 4 weeks.

Averaging Agreements

• Must have signed agreements with employees.

• Must be banked at time-and-a-half for hours over 40.

• Recordkeeping must accurately depict worked hours, accounting for the hours and when the hours were taken subsequently.

• Employer or employee must give 1 week notice if either wishes to close the bank.

Banking Time

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• Commuting time is not counted as work time for the purposes of the ESA.

• However, there are a number of exceptions to this rule:• If the employee takes a work vehicle home in the evening for the

convenience of the employer, the work time begins when the employee leaves home in the morning and ends when he or she arrives home in the evening.

• If the employee is required to transport other staff or supplies to or from the workplace or work site, time so spent must be counted as work time.

• If the employee has a usual workplace but is required to travel to another location to perform work, the time traveling to and from that other location is counted as work time.

Time spent travelling during the course of the workday is considered to be work time.

Travel Time

• Time spent by an employee in training that is required by the employer or by law is counted as work time. For example, where the training is required because the employee is a new employee or where it is required as a condition of continued employment in a position, the training time is considered to be work time.

• Time spent in training that is not required by the employer or by law in order for an employee to do his or her job is not counted as work time. For example, where an employee hoping for a promotion with the employer takes training in order to qualify for it, time spent taking the training is not considered to be work time.

Training Time

Holidays.

The statutory holidays are: • New Years Day • Family Day • Good Friday • Victoria Day • Canada Day • Saskatchewan Day• Labour Day • Thanksgiving Day • Remembrance Day • Christmas Day Where New Year’s Day, Christmas Day, or Remembrance Day falls on a Sunday, the following Monday shall be observed as a public holiday.

Stat Public Holidays

Federal Stat Public Holidays• New Year's Day• Good Friday• Victoria Day• Canada Day• Labour Day• Thanksgiving Day• Remembrance Day• Christmas Day• Boxing Day

• Employees must be paid 5% of the wages he or she earned in the past four weeks.

• Employees who work on a statutory holiday must be paid:• Time-and-a-half for the hours worked

Plus • Holiday pay as defined above.

• Regular earnings include wages and vacation pay received for vacations taken, but does not include overtime pay.

For more information about general holiday pay click here.

Stat Holiday Pay Requirements

Sick Leave – time off work when ill.• Employee may not be dismissed, suspended, or

disciplined when on sick leave. • May be with or without pay.• Employer can request in writing for a doctor’s note.

Vacation – time off work for vacation. • May be taken in shorter periods.• One week must be taken in full.

Sick, Vacation and Leave Pay

• If agreement exists – may be included on every cheque.

• At least one week must be in full week increment per year.

• Eligible to take leave after 1 year of service.

• Vacation time vs. vacation pay.

Vacation Pay Rules:

• Pregnancy• Length of leave – 18 weeks• Extension – 6 weeks• Seniority/Benefits – continuous.

• Parental• Length of leave – 37 weeks, 34

weeks if pregnancy leave is taken.

Pregnancy & Parental Leave

Each employee is entitled to:• 12 days each year to attend to the

care, health or education of a child in employee’s care,

• Or to the care of health of any other member of the employee’s immediate family.

• This is/can be an unpaid leave.

Family Responsibility Leave

Compassionate Care LeavePolicy and Procedures:

• Up to 8 weeks to provide care or support to family member for serious medical condition with significant risk of death.

• Renewable each 26 weeks.• Medical certificate required within 15 days after

employee’s return to work.• Cannot suspend, discipline, terminate, lay-off, or

demote an employee for taking CCL.• Must be reinstated to former position, salary and

benefits.

• Bereavement Leave:Up to 5 days of unpaid leave

• Jury duty:Can be unpaid leave. Employer must grant as protected

leave.• Death or disappearance of a child• Critically ill child• Reservist leave

Other Leave Requirements

Termination

Length of Service Required Notice/Pay by Employer

13 weeks to 12 months 1 week

12 months to 36 months

2 weeks

>3 years but <5 years 4 weeks>5 years but <10 years 6 weeks

>10 years 8 weeks

Termination Chart

Within 14 days of date of termination if employee quits.

Must provide written statement of wages:• Amount of gross vacation pay and • Gross termination or severance pay, • Along with how amounts were calculated.

Employment records must be retained for 2 years.

Payment of Wages on Termination

Withholdings &Deductions

WithholdingsGovernment regulated withholdings:• Employment Insurance (EI)• Canada Pension Plan (CPP)• Quėbec Pension Plan (QPP)• Federal and Provincial Income Taxes

The courts can regulate• Garnishments• Maintenance Orders

CPP• 2016 maximum pensionable earnings:

$54,900• Contribution rate: 4.95%• Annual basic exemption: $3,500• Annual maximum contributory earnings:

$51,400• Annual maximum contribution: $2,544.30

• Death benefits.• Pension benefits.• Payment at the end of employment that is

not considered employment income.• Wage loss replacement benefits.• Workers comp advances or loans.• Payments linked to special conditions.

Benefits not Subject to CPP

Sample CPP CalculationPay period exemption = Yearly basic exemption/pay

period frequency

CPP Contribution = Contributory earnings X CPP Rate

Contributory earnings = Gross pensionable income – Pay period exemption

$45,000/26 payments = $1,730.77 - $134.61 = $1,596.16$1,596.16 X .0495 = $79.01 (Employer and Employee must pay this).

Example: Sarah earns $45,000 per year and is paid bi-weekly. Calculate her employer and employee CPP contribution amount.

EI• 2016 maximum insurable earnings:

$50,800• Employee contribution rate: 1.88%• Employer contribution rate: 2.632%

• Employee rate X 1.4• Annual maximum employee contribution:

$955.04• Annual maximum employer contribution:

$1,337.06• Unlike CPP, there is no pay period exempt

amount.

Most non-cash benefits are not considered insurable.• Employer contributions to an RRSP.• Retiring allowances or severance pay.• Director’s fees.• Monies earned before the death of an

employee.• Maternity, parental, or CCL supplemental

benefits.• WLRP benefits.• Any advances on a WCB award.

Benefits not Subject to EI

• An employer may also deduct money from an employee's wages if the employee has signed a written statement authorizing the deduction.

• An employee's written authorization must state:• The specific amount of money to be deducted; 

Or• Provide a method of calculating the specific

amount of money to be deducted.• An employee's verbal authorization ("blanket

authorization") that he/she owes money to the employer is not sufficient.

Deductions From Pay

Even with a signed authorization, an employer cannot make a deduction if:• The purpose is to cover a loss due to "faulty work." For

example, "faulty work" could be a mistake in a credit card transaction, work that is spoiled or rejected, or a situation where tools are broken or company vehicles damaged; 

Or• The employer has a cash shortage or has had property

lost or stolen when an employee did not have sole access and total control over cash or property that is lost or stolen. A deduction can only be made when the employee was the only one to have access to the cash or property, and has provided a written authorization to the employer to make the deduction.

Deductions From Pay

Taxable

Non-Taxable

 Tangible Property or Gift Card or Cash• A gift (either in cash or in kind) from an employer to an

employee is a benefit derived because of the individual's employment.

• When the value of a gift commemorating a wedding, Christmas or similar occasion does not exceed $500 and is tangible property – non taxable.

• This practice will only apply to one gift to an employee in a year, except in the year an employee marries in which case it will apply to two gifts.

Cash and near-cash are taxable (special rules apply for near-cash)

Gifts

Award - Must be given for an employment-related accomplishment to be nontaxable Outstanding service, employees’ suggestions, or meeting

or exceeding safety standards. It must be recognition of an employee’s overall

contribution to the workplace –not recognition of job performance.

Reward – given to employee for performance-related reasons - taxable

Awards vs. Reward

Awards• Must be employment-related accomplishment.

• Long-service award rules: Value up to $500 – tangible property only -

non-taxable. Must be for a minimum of five years of

service. Must be at least 5 years since you gave the

employee the last long-service or anniversary award.

Is not included in other gift or award benefits.

Example 1: You give your employee a $100 gift card or gift certificate to a department store. The employee can use this to choose whatever merchandise or service the store offers.

Gift is taxable benefit because there is an element of choice.

Example 2: You give employee tickets to an event on a specific date and time.

Gift is non-taxable because there is no element of choice.

Examples of Gifts and Awards

Prize Draws and Social CommitteesTaxable:• Item given to one employee by an employer via a prize

draw.• Item paid for by the employer and given via a draw to an

employee of a high-performing team.

Nontaxable:• Item paid for by a social committee and given via a draw• Committee must be entirely funded by the employee • If funded by employer – taxable.• If funded by both – employer percentage is taxable –

employee percentage is nontaxable.

Automobile AllowancePersonal use of company vehicle is taxable.

• Use “stand-by charge” method calculation (available on CRA website: Auto benefits calculator pub. T4130).

Reasonable per-kilometre allowance – nontaxable.• 54₵ per kilometre for the first 5,000 kilometres

driven and 48₵ per kilometre driven after that• Cannot be averaged at the end of the year to

keep nontaxable• Flat rate allowance - taxable

Cellular Phone ServicePersonal use of company cell phone is taxable• Employer has responsibility to determine FMV (fair

market value) of personal use. • Must justify calculations.

Exception to the rule (all must apply):• The plan’s cost is reasonable.• The plan is a basic plan with a fixed cost.• Your employee’s personal use of the service does not

result in charges that are more than the basic plan cost.

Air Miles.3 Different Scenarios.

Airline Bonus Points Your employees may collect loyalty points,

such as frequent flyer points or air miles, on their personal credit cards when travelling on business trips, even though you reimburse them for the amounts they spend.

Usually, these points can be exchanged or cashed in for rewards (goods or services, including gift cards and certificates).

Airline Points, cont.• Your employees do not have to include in their income

the value of the rewards they received or enjoyed from the points they collect on these business trips, unless any of the following applies:• The points are converted to cash.• The plan or arrangement between you and the

employee seems to be a form of additional remuneration.

• The plan or arrangement is a form of tax avoidance.

• If any of the conditions above are met, the employee has to declare the fair market value of any personal rewards he or she received on an income tax and benefit return.

Exception to the rule:• If you control the points (such as when an

employee uses a company credit card, you have to report on their T4 slip the fair market value of any personal rewards he or she received from redeeming the points.

• You have to include any GST/HST that applies in the value of this benefit.

Airline Points, cont.

Example 1Personal credit card• Pauline's employer allows her to use her personal credit cards

whenever possible to pay for business expenses, which the employer then reimburses to her. To maximize the points earned, Pauline used her personal credit cards to pay for various employer business costs, including travel expenses of other employees.

• CRA views this arrangement as a form of additional remuneration provided to Pauline. Pauline would not normally pay for employer business costs other than her own work-related expenses, incurred in the normal course of working. She would not normally cover the cost of business expenses of other employees. Pauline will have to calculate the fair market value of any personal reward she receives when she redeems the points. She will then have to declare the value as income on her income tax and benefit return.

Company credit card points for benefit of the employee• Jennifer's employer has a company credit card, under which loyalty

points are earned. Jennifer uses the card for employment-related purchases. The employer is billed, pays the credit card charges, and receives the loyalty point statement. The employer allows Jennifer to redeem the points for personal rewards.

• In this case, the fair market value of the goods or services received by Jennifer is a taxable employment benefit, as her employer controls the tracking and disbursement of the points. The employer has to report the value of the goods or services on her T4 slip in the year that the points are redeemed.

• Alternately, if the employer did not control the tracking and redemption of the points, the value of any points redeemed by Jennifer for personal rewards would not have to be included on her T4 slip. Jennifer may have to declare the income on her income tax and benefit return.

Example 2

Personal loyalty points card• Frank has a personal credit card he uses for both personal

and work-related expenses. The card offers loyalty points which can be cashed in for travel rewards, but which cannot be redeemed for cash. Frank decides to redeem some of the points to take his family on vacation.

• Since Frank controls the points, and this arrangement does not seem to be a form of additional remuneration, he does not have to include the value of the points earned from work-related expenses as income on his income tax and benefit return.

Example 3

Insurance

Supplemental Health InsuranceWhere an employer makes a contribution to a

private health services plan in respect of an employee, no taxable benefit arises to the employee.

Benefits provided to an employee under a private health services plan are not subject to tax in the employee's hands. "Private health services plan" is defined in subsection 248(1). (See also the current version of IT-339, "Meaning of Private Health Services Plan" and IT-85, "Health and Welfare Trusts for Employees".)

Employer's Contribution under Provincial Medical Plans:

Where an employer is required, under a provincial hospital insurance plan, a provincial medical care insurance plan, or both, to pay amounts to the provincial authority administering such plan or plans (other than with respect to the contributions or premiums that an employee is required to make under the plan), the payment of such amounts does not give rise to a taxable benefit to employees.

Provincial Healthcare Plans

Non Taxable as long asExpenses are covered as outlined in

IT-519.

Taxable If used for expenses not allowed in IT-

519.

Health Spending Accounts (HSA)

Group Term Life Insurance PoliciesCalculating the benefit:If the premiums are paid regularly and the premium rate for each individual does not depend on age or gender, the benefit is:

The premiums payable for term insurance on the individual’s life - plus,

The total of all sales taxes and excise tax that apply – minus,

The premiums and any taxes the employee paid directly or through reimbursements to the employer.

If taxable it is pensionable but not insurable.

Term Life CalculationPremiums paid by employer + sales tax – portion paid

by employee = taxable benefit

CPP must be paid on this benefit, but not EI

ParkingEmployer-provided parking is usually a taxable benefit for an employee, whether or not the employer owns the lot.

Exceptions to the rule:• The parking does not have a FMV.• There are significantly fewer spaces than

there are employees who want parking and the spaces are available on a first-come, first-served basis.

• There is no taxable benefit if you provide parking to your employee for business purposes and your employee regularly has to use his or her own automobile to do his or her duties.

Professional Membership Dues If you pay professional membership

dues for your employee and you are the primary beneficiary of the payment, there is no taxable benefit for the employee.

Health Club DuesThe use of a recreational facility or club is a taxable benefit if:

• You pay, reimburse or subsidize the cost of:Membership to recreational facility.Membership to a business or

professional club.

Non-taxable benefit includes:• You provide an in-house recreational

facility.• You pay for a company membership at a

facility and the employees are allowed to use company membership.

RRSPsContributions the employer makes to

an employee’s RRSP is a taxable benefit.

Administrative fees you pay are considered taxable and pensionable.

Do not deduct EI.

UniformsNon-taxable if the following conditions apply:• You supply your employee with a distinctive

uniform he or she has to wear while carrying out the employment duties.

• You provide your employee with special clothing designed to protect them from hazards associated with the employment.

• Reimbursements with receipts for uniforms and safety gear is nontaxable.

Detailed method: Price on receipts.

Simplified method: $17 per meal; not to exceed $51

per day.Really Simple Method:

Use Expensify.

Meal Allowances/Reimbursements

No really, we are almost done.

Overview of the changes:• All workers aged 60 to 65 have to make CPP contributions

—even if they are receiving a CPP or Quebec Pension Plan (QPP) retirement pension.

• Workers who are 65 to 70 years of age and who are receiving a CPP or QPP retirement pension have to contribute unless they have taken action to stop their CPP contributions. By continuing to contribute (which can be done up to and including the month they reach 70 years of age), they will receive more benefits by way of the new post-retirement benefit (PRB).

CPP Newest Regulations

To stop contributing to the CPP, workers have to be at least 65 years of age and:

Employees (who may also have self-employment income) have to complete Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election.

Send the original form to the Canada Revenue Agency (CRA), and give a copy to their employer. The change will take effect on the first day of the month after the employee gives the form to their employer.

Self-employed workers must complete Schedule 8, CPP Contributions on Self-Employment and Other Earnings, when they file their income tax and benefit return. The change will be effective on the first day of the month referenced in Schedule 8

CPP Newest Regulations

What type of remitter are you?• Regular remitter• Quarterly remitter• Accelerated remitter

Remitting guidelines are based on amounts of withholdings to be remitted.

Updated remittance amounts can be found here.

Withholding Remitting

Penalties Incurred Through PIER

Penalties and Interest Based on lateness of remittance, Failure to remit, Interest can be charged on unpaid

penalties in addition to amounts owed. Interest in compounded daily from date

remittance was first due or penalty was first assessed.

Garnishments.

CreditorsTypes of Garnishments

Tax garnishments from the CRAChild support/Maintenance orders

23

1

Creditor Garnishments• Court ordered

• Cannot terminate the employee for garnishmentFine: $1,000 or face imprisonment with a duration of one year.

• Deduction controlled by federal and provincial laws.

Tax Garnishments from CRA

• Allowed without a court order.

• No limit.• CRA garnishments come

first.• Usually last resort.

Child Support/Maintenance Orders• Court may order be paid in periodic

payments, lump sum or both.

• Limits are governed by federal and provincial law.

• Cannot terminate an employee for garnishee.

Employer LiabilityIf you receive a Requirement to Pay notice and you do not comply

with the requirements:

YOUR COMPANY MAY BE HELD RESPONSIBLE FOR THE

AMOUNTS YOU DIDN’T REMIT!

Final Thoughts.

Special Payroll ConcernsFinal Pay• Calculate the employee’s earnings and

deductions for year to date.• Give employee T4 slip.• File government copy by the last day of

February of the following year.• Complete the Record of Employment (ROE).• Withholding rates for lump sum payments

(incl. retirement allowances).

• Join the Canadian Payroll Association.• Training Rewards Resources:

• HR for Anyone with Newly Assigned HR Duties

• Microsoft Excel• Quickbooks Payroll

Next Steps:

… AND YOU’RE DONE!

Thank you.

Link to this presentation:

www.LeanTeams.ca/resources

Wade Farquhar

To download this presentation