This document discusses the rules that govern human resource management (HRM) considerations in Canada. It covers regulations from the Canada Revenue Agency regarding payroll deductions for income tax, Canada Pension Plan, employment insurance, and other requirements. It also discusses rules regarding workers' compensation, employment standards, and the responsibilities of employers to remain up-to-date and compliant with constantly changing laws and regulations from various agencies to avoid penalties. Maintaining orderly business records is important for compliance and avoiding disputes. Overall, the document emphasizes that HRM in Canada involves navigating a complex network of legal obligations.
The presentation was developed to drive business and public\'s awareness to maximize the ongoing hiring tax credits and the stimulus $$ hiring tax credits, from both federal and state level.
Presentation aims to drive the job creations and boost the local economic growth through maximizing government resources and programs.
Global Payroll: Taking a Practical ApproachGlobalupside1
Global Payroll Association (GPA) teamed up with SmugMug, ADP and Global Upside for this webinar where you will learn how to take a practical approach to global payroll accounting, tips and tricks, accruals, reporting and withholding obligations and how they differ from country to country. For more info contact us at info@globalupside.com
The presentation was developed to drive business and public\'s awareness to maximize the ongoing hiring tax credits and the stimulus $$ hiring tax credits, from both federal and state level.
Presentation aims to drive the job creations and boost the local economic growth through maximizing government resources and programs.
Global Payroll: Taking a Practical ApproachGlobalupside1
Global Payroll Association (GPA) teamed up with SmugMug, ADP and Global Upside for this webinar where you will learn how to take a practical approach to global payroll accounting, tips and tricks, accruals, reporting and withholding obligations and how they differ from country to country. For more info contact us at info@globalupside.com
Basic guide for contractors and freelancerssajahmed99
Limited company basic principles, important dates, allowable and dis-allowable business expenses for small limited companies, IR35, PAYE, Registering as an employer, what expenses I can put through the company? What expenses I can claim being a director? Should I have a company car or my personal car? What can I claim VAT on if the company is VAT registered? What can I not claim in relation to VAT? Dividends explained
To understand the registration procedure for incorporating a company in Dubai Freezone, its advantages and limitations. The webinar shall also dwell upon different types of freezones in Dubai, estimated time and cost of incorporation.
S corporations are legally structured in a way that allow them to go untaxed. This is because income that is recognized by owners is taxed at the personal level and not via the business. Moreover, an S corporation is a pass-through or flow-through entity, which means income passes through to the shareholders. This newsletter details tax management information and methods used by and relevant to S corporations.
This is the third module in the Canadian Small Business Course.
In this course we begin to get into the nitty gritty of running a small business in Canada. Here, we review the different ways that are available to pay yourself as an owner-manager.
After taking this module, you should have a firm understanding on what is entailed in paying yourself with salary, dividends and other means along with how to administer these options.
To help you navigate the changes with your pass-through entity clients, I am sharing a resource to create dialogue for your year-end tax planning with them.
We work together to provide the solutions that help your CPA firm succeed including proactive accountability to keep you moving in the right direction.
If you are ready to join the ranks of successful firms throughout the US who have realized significant benefits as a result of Firm Foundation membership and want to explore the next steps, let’s talk: 800.537.7179
Setting Up a Business in the PhilippinesEastvantage
How easy is it to start up a business in the Philippines. Discover the different legal entities and the government agencies that help you starting a business in the Philippines. Thensee how some made it happen through with 4 short cases studies.
Course Description
If you own or manage a business that uses independent contractors, you need to know when you can or cannot treat a worker as an independent contractor. This presentation answers some of the common questions about worker classification.
INTRODUCTION
Misclassification of employees as independent contractors is now a common phrase uttered by state and federal legislators and regulators. State task forces have been formed to crack down on businesses that do not pay unemployment insurance and workers’ compensation premiums or withhold taxes for workers whom the state believes are employees and not independent contractors.
In 2017, there have been key developments regarding transformation in SA, where businesses need to be prepared, or face serious potential risks for their companies.
I have highlighted some of the key challenges affecting companies with regards to B-BBEE, Employment Equity(EE) and Skills Development(SD) in the attached newsletter.
Basic guide for contractors and freelancerssajahmed99
Limited company basic principles, important dates, allowable and dis-allowable business expenses for small limited companies, IR35, PAYE, Registering as an employer, what expenses I can put through the company? What expenses I can claim being a director? Should I have a company car or my personal car? What can I claim VAT on if the company is VAT registered? What can I not claim in relation to VAT? Dividends explained
To understand the registration procedure for incorporating a company in Dubai Freezone, its advantages and limitations. The webinar shall also dwell upon different types of freezones in Dubai, estimated time and cost of incorporation.
S corporations are legally structured in a way that allow them to go untaxed. This is because income that is recognized by owners is taxed at the personal level and not via the business. Moreover, an S corporation is a pass-through or flow-through entity, which means income passes through to the shareholders. This newsletter details tax management information and methods used by and relevant to S corporations.
This is the third module in the Canadian Small Business Course.
In this course we begin to get into the nitty gritty of running a small business in Canada. Here, we review the different ways that are available to pay yourself as an owner-manager.
After taking this module, you should have a firm understanding on what is entailed in paying yourself with salary, dividends and other means along with how to administer these options.
To help you navigate the changes with your pass-through entity clients, I am sharing a resource to create dialogue for your year-end tax planning with them.
We work together to provide the solutions that help your CPA firm succeed including proactive accountability to keep you moving in the right direction.
If you are ready to join the ranks of successful firms throughout the US who have realized significant benefits as a result of Firm Foundation membership and want to explore the next steps, let’s talk: 800.537.7179
Setting Up a Business in the PhilippinesEastvantage
How easy is it to start up a business in the Philippines. Discover the different legal entities and the government agencies that help you starting a business in the Philippines. Thensee how some made it happen through with 4 short cases studies.
Course Description
If you own or manage a business that uses independent contractors, you need to know when you can or cannot treat a worker as an independent contractor. This presentation answers some of the common questions about worker classification.
INTRODUCTION
Misclassification of employees as independent contractors is now a common phrase uttered by state and federal legislators and regulators. State task forces have been formed to crack down on businesses that do not pay unemployment insurance and workers’ compensation premiums or withhold taxes for workers whom the state believes are employees and not independent contractors.
In 2017, there have been key developments regarding transformation in SA, where businesses need to be prepared, or face serious potential risks for their companies.
I have highlighted some of the key challenges affecting companies with regards to B-BBEE, Employment Equity(EE) and Skills Development(SD) in the attached newsletter.
ERTC Funding
ERTCpro.com
Employee retention is a crucial element in the success of any organization. The ability to retain skilled and experienced employees not only helps maintain productivity levels but also ensures continuity in the business operations. However, with the current economic climate, many organizations are struggling to keep their workforce intact due to financial constraints.
To address this issue, governments across the globe have introduced measures such as employee retention tax credits (ERTC) to incentivize employers to retain their employees amid the pandemic.
The ERTC is a tax credit that provides financial relief for eligible employers who continue to pay their employees during periods of economic hardship caused by COVID-19. This tax credit was introduced by the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 and has since been expanded and extended under subsequent legislation.
As an expert in ERTC tax credits, it is the duty of us at ERTCpro.com to educate employers on how they can take advantage of this program to retain their workforce while reducing their tax liability. In this article, we will explore the eligibility criteria, benefits, and application process for ERTC and provide insights on how organizations can maximize its potential for employee retention.
Overview Of The Employee Retention Tax Credit (ERTC)
The Employee Retention Tax Credit (ERTC) is a tax incentive program that was introduced to help businesses retain their employees during the COVID-19 pandemic. The ERTC provides eligible employers with a refundable tax credit of up to $5,000 per employee. This credit can be used to offset the employer's share of Social Security taxes.
A benefits analysis should be performed by eligible employers to determine if they qualify for the ERTC. To qualify, an employer must have experienced a significant decline in gross receipts or been forced to suspend operations due to a government order related to COVID-19. Additionally, employers must have maintained their workforce during the period in which the credit is being claimed.
The ERTC can provide much-needed support in these uncertain times.
Questions? See ERTCpro.com
The Employee Retention Credit (ERC) is a tax credit provided by the U.S. government to support businesses during challenging times, such as the COVID-19 pandemic. It was introduced as part of the CARES Act in 2020 and has since been expanded and extended to help businesses retain their employees.
In Canada, tax is paid at both federal and provincial (i.e. state) levels of government.
Both the federal government and most provincial governments provide funding for scientific and technological R&D through a system of tax credits.
The official title of this system of R&D tax credits is the Scientific Research & Experimental Development tax credit abbreviated SR&ED.
The SR&ED program is administrated by the Canada Revenue Agency abbreviated CRA.
All taxpayers anywhere in Canada are eligible to receive R&D tax credits at the federal level. Eligibility for R&D tax credits at the provincial level is predicated on two considerations; First the province must have an R&D credit and second, you must be a taxpayer in that province.
In addition to being done by a Canadian taxpayer, the R&D work must be done in Canada.
April 6th 2013 PAYE in the UK is undergoing its most fundemental change since its inception in the 1940's. Please see our fact shet for more information
Small Business Efficiency Act: Good News for PEOs & Small EmployersCPEhr
On December 19, 2014, the Tax Increase Prevention Act of 2014 was signed into law. This included the enactment of the Small Business Efficiency Act (SBEA), which amended the Internal Revenue Code to establish a certification program for Professional Employer Organizations (PEOs).This certification program, once up and running, should eliminate concerns businesses may have about partnering with a PEO.
This is a complete guide to Employee Retention Credit (ERC) and Employee Retention Tax Credit (ERTC) and how it benefits your business. Finally get all your questions answered, and find out if your company is eligible for ERC/ERTC.
This article on your 2016 tax return and tax planning tips for nonqualified deferred compensation plans is reprinted with permission of myNQDC.com, a respected source of information, content, and tools on nonqualified deferred compensation.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
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2. Table of contents
Introduction 3
Canada Revenue Agency 3
Payroll deductions 4
Canada Pension Plan/Quebec Pension Plan 4
Employment insurance 4
Income tax 5
Enforcement 5
Beyond the Canada Revenue Agency 6
Workers’ compensation 6
Employment standards 7
Conclusion 7
Staying compliant in Canada: A discussion of the rules
that govern HRM considerations
2
3. Introduction
Human resources are valuable assets to a business for many reasons. For example,
employees are often at the center of interactions between prospects and clients and, as a
result, crucial in delivering a consistently positive experience with a “brand.” Also, due to the
hands-on nature of their work, employees are often a major source of fresh ideas and better
practices suggestions. Plus, as employees gain experience, they learn how to do more
in less time and become a talent pool potentially worthy of promotion. Thus, training and
motivating a productive workforce is a fundamental element of success whether a company
has one employee or thousands.
Of course, human resources demands systematic, strategic, specialized, and evolving
management both to boost the performance of an enterprise and to maintain compliance
with a wide array of legal requirements mandated by federal, provincial, and local
governments. Human beings are complicated; so are the rules they institute as a society
to provide for their safety and welfare. As a consequence, modern human resource
management (HRM) is a complex undertaking. What follows is a discussion of some of the
prominent regulatory provisions that govern HRM considerations in Canada.
Canada Revenue Agency
Numerous name changes have marked the history of the current Canada Revenue Agency
(CRA) since its inception in 1927, but its basic mission is the same: to administer the tax laws
of the government of Canada and many of her provinces and to deliver a variety of tax
incentives and benefit programs to millions of Canadians. The CRA is a large agency with
over 40,000 employees and many offices nationwide. The rules and regulations it
administers change frequently.
All for-profit Canadian businesses—sole proprietorships, partnerships, and corporations—
are required to register a business number with the CRA. Additionally, businesses with
employees (essentially someone who is paid wages, a salary, benefits, or any other
remuneration) must register a payroll deductions account, signified by the letters RP in a
business number. This account is used to remit regularly scheduled payments of various
taxes and premiums (outlined below) to the CRA.
It’s important to point out that the CRA requires paper or electronic documentation of
business activity to provide proof of claims made in tax filings and dispute resolution for no
less than six years. Business activity pertains to all income received and all outlays of money.
In the case of businesses with employees, outlays include all forms of compensation paid.
The CRA advises in the strongest terms that these business records be orderly. Orderly,
up-to date records benefit businesses by keeping them consistently aware of how they are
performing and by helping them avoid and possibly clear up disputes with the CRA that can
lead to disallowed deductions and interest and penalty payments.
Training and
motivating a
productive workforce
is a fundamental
element of success
whether a company
has one employee or
thousands.
For more information,
contact the Canada
Revenue Agency.
http://www.cra-arc.gc.ca
Staying compliant in Canada: A discussion of the rules
that govern HRM considerations
3
4. Payroll deductions
As employers, Canadian businesses have the responsibility of deducting Canada Pension
Plan or Quebec Pension Plan contributions, employment insurance premiums, and income
tax from each employee’s total remuneration. Employers are responsible for remitting this
money to the CRA at regularly scheduled intervals.
Canada Pension Plan/Quebec Pension Plan. The Canada Pension Plan (CPP) was
devised as a way to provide financial assistance to Canadian retirees. Every person who
works in Canada is eligible to receive CPP benefits upon retirement. The funds that pay for
these benefits are deducted from each employee’s remuneration, matched by employers,
and remitted by employers to the Receiver General for Canada.
Businesses located in Quebec deduct Quebec Pension Plan (QPP) contributions rather
than the CPP and remit the payments to Revenu Quebec rather than the Receiver General
for Canada.
Again, both employees and employers contribute equal amounts to the CPP and QPP, but it
is employers who remit the funds on an established and strictly enforced schedule that
varies according to employee classification. These employee categories, the specifics of
what qualifies as pensionable income, payment schedules, and contribution rates for CPP
and QPP often vary from year to year.
Fortunately, the latest information is available for both CPP and QPP on the CRA agency
websites. Both agencies also publish paper guidebooks. Another worthwhile option is a
modern HRM software solution with payroll functionality capable of automatically updating
an accounting system to the latest payroll deduction rules and rates as soon as they go
into effect.
Employment insurance. Employment insurance (EI) is a program administered by the
Canadian federal government through the CRA to provide financial assistance and jobs
training to unemployed Canadians. As with the CPP and QPP, both employees and
employers pay the premiums on EI, with employers paying slightly more in general. Again, it
the employer’s responsibility to deduct and remit employee contributions to EI premiums
from insurable earnings.
“Employer payrolls continue to be frequently subject to audits. CRA, which
refers to these as Employer Compliance Audits, has special teams in place to
ensure you’ve withheld and remitted any income tax, CPP, and EI premiums
on both cash and noncash payments and your employees’ taxable benefits.
The auditors will review the timing of payments to see that you are remitting
this money as frequently as you are required to. While penalties for late
employer payroll remittance were occasionally being waived for first-time
offenses, this is no longer the case; increasingly, CRA is strictly imposing
penalties to ensure compliance.”
Disputes with the CRA
“Audit check-up: What’s on the taxman’s radar,” Financial Post, June 9, 2014
Canada Pension Plan (CPP)
Quebec Pension Plan (QPP)
Staying compliant in Canada: A discussion of the rules
that govern HRM considerations
Both employeesand
employers contribute
equalamounts tothe
CPP and QPP, butitis
employers whoremit
thefundson an
established andstrictly
enforced schedulethat
varies accordingto
employeeclassification.
4
5. The EI rates paid by employees, the rates paid by employers, the specifics of what
qualifies as insurable income, and payment schedules can vary from year to year. Also,
even though EI is administered federally, rates also vary according to province or territory.
Employers can visit the applicable CRA website, consult the latest paper CRA guidebook
or an accounting professional, or deploy HRM software with payroll functionality to
comply with the latest EI requirements.
Income tax. Employers are responsible for deducting income tax from the wages, salaries,
and other forms of remuneration they pay employees. This responsibility is the most
complicated of all payroll deductions due to the seemingly endless categories of employees,
graduated tax brackets that rise with income levels, and numerous forms of remuneration
receiving special tax treatment. For instance, employing fisherman or employing people who
earn commissions and claim expenses complicate the income tax calculation a business
must deduct. Employers are required to submit TD1 forms (with worksheets) that account for
the special tax credits that apply from one individual employee to the next.
The topic of forms leads to mention of the “Statement of Remuneration Paid,” commonly
known as the T4 slip. This statement summarizes each employee’s various forms of
remuneration and the deductions each qualifies for. Employers are required to fill out and
give each employee a copy of his or her T4 slip no later than the end of February after the
calendar year for which it applies. The rules and regulations that govern income tax
deductions, as well as the T4 slips themselves, vary according to province and territory. For
more information on income tax calculations (as well as CPP and EI calculations), visit this
CRA website to view a Payroll Deductions Online Calculator: www.cra.gc.ca/pdoc
Obviously, payroll deductions can be complicated. That’s why the CRA encourages
employers to visit www.cra.gc.ca/payroll or call 1-800-959-5525. Plus, the CRA offers an
on-site consultative service to provide help with payroll deductions as part of its Employer
Visits Program.
Enforcement. It is vital to point out that the CRA doesn’t create tax law; parliament does.
The CRA is tasked with collecting on-time tax and premium payments from individuals and
businesses but also with being a benefit to the Canadian people, businesses, and economic
growth. With this in mind, the agency states in its Guide for Canadian Small Businesses that
it strives “to improve services, reduce paperwork burden and the cost and time of
compliance, and maintain confidence in Canada’s tax system.” To the credit of the CRA and
Canadians themselves, it is typical in any given year for well over 90% of Canadian
individuals and businesses to properly comply with their tax responsibilities. Also, the fast
and convenient filing of taxes online is now commonplace and continuing to trend upward.
However, the confidence that Canadians have in the tax system is based upon their faith in
the fact that everyone plays by the rules and that if and when mistakes are made or rules are
broken, those in error or willful offenders will rectify the problems or face consequences.
Hence, the audit system and late payment penalties that are designed to accomplish just that.
CRA audits are inspections of various account records intended to uncover tax payment
discrepancies by individuals and businesses. The payroll records of employers are most
certainly subject to inspection. The CRA has computer programs and human inspectors
searching for tax discrepancies, but audits occur for other reasons as well. Some audits
uncover overpayments that result in refunds to taxpayers. Most, though, result in
assessments of additional payments due, and these are very likely to include penalties and
interest added to the assessment. Taxpayers have numerous ways to appeal such
To the credit of the
CRA and Canadians
themselves, it is typical
in any given year for
well over 90% of
Canadian individuals
and businesses to
properly comply with
their tax
responsibilities.
Staying compliant in Canada: A discussion of the rules
that govern HRM considerations
5
6. assessments—having the orderly, accurate records mentioned above is essential—but
interest (currently, 5% compounded daily) continues to accrue throughout the appeals
process. Although it’s rare, egregious or particularly large willful infractions against the tax
code are referred for criminal prosecution.
To reiterate, avoiding errors that look suspicious and that can lead to run-ins with CRA
auditors is more likely when employers consult accounting professionals with experience in
human resource matters and/or deploy HRM software to track payroll deductions.
Beyond the Canada Revenue Agency
Further significant employer HRM responsibilities exist outside the scope of the CRA.
Workers’ compensation. Depending upon the hazardous nature of their industry, many
employers are required to register with a provincial or territorial Workers’ Compensation
Board (WCB) and make additional workers’ compensation insurance payments. Workers’
compensation insurance is an agreement between employers and their employees designed
to eliminate negligence lawsuits and debilitating settlements paid to workers injured on the
job by placing adjudication of those injuries in the hands of a neutral party, in this case the
WCB. Besides registering with a WCB, employers mandated to pay workers’ compensation
are expected to educate workers to better prevent on-the-job injuries, to report such injuries,
and to help workers return to work postrecovery.
“In 2012-2013, we exceeded two important performance targets: We
adjusted a higher percentage of tax returns we audited, and our audit
activities generated a higher fiscal impact per full-time equivalent (auditor).
We did, however, complete a lower number of total audits than we did in
2011-2012. This is in part because of our strategic decision to focus more
resources on auditing high-risk files. As we move forward, we expect that
our new approach to selecting high-risk files and using specialized teams will
continue to increase the fiscal impact of our Small and Medium Enterprises
Program.”
Auditing less, collecting more: CRA targets high-risk SME filers
CRA Annual Report to Parliament (2012-2013)
“. . . in Canada it’s not the medical benefits that drive costs higher, it’s the time
away from work that hurts employers most. Even one lost time day can add
up . . . for each day an employee loses time from work, the employer pays five
to seven times their normal pay amount in experience claims costs. For
example, if an employee earns $100 per day, it is estimated that the
employer pays $500-$700 per day while this employee remains off work.
Having a proactive and consistent return to work program in place that
makes offers of modified duties immediately will make the biggest impact to
employers costs control efforts.”
The true workers’ compensation cost driver
Third-party administrators Crawford and Company
Employers mandated
to pay workers’
compensation are
expected to educate
workers to better
prevent on-the-job
injuries, to report such
injuries, and to help
workers return to work
postrecovery.
Staying compliant in Canada: A discussion of the rules
that govern HRM considerations
6
7. Needless to say, premium rates and regulations vary from year to year, according to province
or territory, once again reinforcing the wisdom of consulting accounting professionals and/or
deploying HRM software featuring automatic workers’ compensation updates to ensure
proper compliance.
Employment standards. Starting with the Employment Standards Act signed into law in
Ontario in 2000, every province and territory has codified an extensive list of employment
standards covering virtually every Canadian employee. An extensive list of federal standards
administered by the government of Canada’s Labour Program applies as well.
The reasoning behind all Canadian employment standards boils down to fairness, which
proponents of the standards view as good for Canadian society and the economy. For
example, insofar as antidiscrimination standards promote equal access to employment, the
Canadian economy is better positioned to take advantage of the skills, talents, and
productivity of the widest possible pool of citizens. Proponents of the standards also
contend that the rules have helped build more positive workplace environments overall and
more proactive relationships between employers and employees.
Have employment standards eliminated the ages-old power struggle between management
and labour? No. However, they do provide a playing field upon which to measure relative
positions. As they currently concern employers, suffice it to say that employment standards
are multifold, complicated, and various. For instance, all 13 provinces and territories have
their own minimum wage, ranging (in June 2014) from $9.95/hour in Alberta to $11.00/hour
in Ontario and Nunavut.
Various minimum wages are merely one illustration of why it’s important for employers to
carefully track rest periods, break times, paid time off due to a multitude of circumstances,
paid holidays, averaging irregularly distributed hours of work, and an incredible range of
other work-related factors: Employees hold employers accountable for complying with a
lengthy set of employment standards, and employees can and do seek remediation of
grievances based upon those standards.
Conclusion
Human resources are valuable assets to a business but also a large and complicated
responsibility. Recognizing that responsibility, Canada has implemented a network of laws
and regulations governing employer obligations regarding tax and insurance premium
payments, workers’ compensation, and workers’ rights. Nonfulfillment of these obligations
can be costly. Human resource managers are well-advised to take the steps necessary to
comply and stay up to date with the rules created for the benefit of employees and
employers alike.
The reasoning behind
all Canadian
employment standards
boils down to fairness,
which proponents of
the standards view as
good for Canadian
society and the
economy.
Staying compliant in Canada: A discussion of the rules
that govern HRM considerations
7