Legislative roundup: Changes in payroll laws and regulations from across Canada

Wage Loss Replacement Plans subject to CPP • Minimum wage tied to CPI • Minimum wage under review • WSIB coverage for construction to be mandatory in 2013 • Minimum wage going up April 1 • P.E.I. employers can renew workers’ compensation online • Nova Scotia passes citizenship ceremony leave
|Canadian Payroll Reporter|Last Updated: 02/07/2012

Canada

Wage Loss Replacement Plans subject to CPP

Payments from an employer-funded Wage Loss Replacement Plan (WLRP) are subject to Canada Pension Plan (CPP) contributions, according to the Canada Revenue Agency (CRA). Under legislation passed in December 2011, payments from an employer-funded WLRP are considered employment income and therefore are subject to CPP contributions.  A WLRP is an arrangement between an employer and employees or between an employer and a group or association of employees, under which provision is made for indemnification of an employee, by means of benefits payable on a periodic basis, if an employee has a loss of employment income as a consequence of sickness, maternity or accident, according to interpretation bulletin IT-428 from the CRA. Employers who have not withheld CPP on employer-funded WLRP payments in the past should start withholding CPP contributions on these amounts effective January 2012.

Alberta

Minimum wage tied to CPI

Minimum wage changes in Alberta will now be tied to the consumer price index (CPI). The minimum wage change will be implemented on Sept. 1. The government has promised to give three months’ notice of indexed minimum wage changes for the province in the future.