News in brief: A look at news, facts and figures shaping the world of payroll professionals

Majority of Quebec workers discuss salary • Maternity leads to lower wages: Study • Calgary’s mayor examines councillor perks • Modest salary increases expected in 2011 • ADP launches mobile payroll app

Majority of Quebec workers discuss salary

MONTREAL — Although discussing salaries at work is still taboo, Quebec workers would like to see things change, according to a survey by Quebec's HR association. Fifty-eight per cent of respondents feel the ban on talking about salaries should be lifted, according to the survey of 604 Quebec workers by the Ordre des conseillers en ressources humaines agréés (CRHA). The survey also found more women than men are in favour of this type of transparency. “Since pay equity remains a concern in Quebec organizations, the fact that women are more interested in discussing salaries comes as no surprise since they’re the ones who often feel left behind,” said Florent Francoeur, president and chief executive officer of CRHA. Employees still talk about salaries among themselves. In fact, 70 per cent of respondents reported having discussed their salary with one of their co-workers, a percentage that climbs to 84 per cent among young workers.

Maternity leads to lower wages: Study

TORONTO — Motherhood leads to significant wage losses for working women, according to a new report. This motherhood gap in wages largely occurs because of wage penalties women experience each time they exit and re-enter the workforce for a maternity leave, found Career Interrupted: The Economic Impact of Motherhood. “Previous studies on wage differences by gender have found roughly one-half of an observed 20 per cent gender gap cannot be explained by the usual factors driving wages, such as experience, hours worked, occupation, industry, age and the like,” said Beata Caranci, deputy chief economist at TD Economics and co-author of the report. “The research leads us to conclude exits from the labour force, most often related to family or motherhood — not gender — are the culprit behind this ‘unexplained’ wage gap.” Women who exit the workforce to have children tend to experience an unexplained three per cent wage penalty per year of absence. This persistent wage penalty is up to three times more severe for frequent exits (three or more) than it is for long absences.

Calgary’s mayor examines councillor perks

CALGARY — Calgary’s new mayor is going to take a closer look at city councillors’ pay and benefits. While there is a regular review of aldermen’s compensation, the committee’s mandate should be expanded, said Mayor Naheed Nenshi, who was elected on Oct. 18. Currently the committee, which includes outside experts in law, labour and business, is formed every three years to examine pay, pension and benefits, but it doesn’t look at office expense accounts. Last year, a Calgary Herald investigation found aldermen expensed thousands of dollars for dry cleaning and the mayor expensed his car washing and detailing. Aldermen also used their office budgets to buy tickets for public events, including theatre performances and speeches. Calgary aldermen earn about $97,000 a year and the mayor earns about $190,000. Nenshi wants a review to “examine, soup to nuts, how we think about the various compensation, the pay and perks, that all council members, including myself, receive,” he said. 

Modest salary increases expected in 2011

OTTAWA — Workers and businesses will have to be patient going into 2011 as an unsteady economic recovery will mean moderate pay increases, according to a Conference Board of Canada report. Increases for non-unionized employees are expected to average 2.8 per cent, said the Compensation Planning Outlook survey of 384 organizations. Private sector employers are planning increases of 2.9 per cent, compared to 2.3 per cent in the public sector (including the public service, agencies and Crown corporations, municipalities, hospitals and schools). Projected increases are highest in the oil and gas industry, at an average of 3.6 per cent and the lowest increases — 1.4 per cent on average — are expected in the education and health sectors.

ADP launches mobile payroll app

ROSELAND, N.J. — ADP launched its first app, RUN Powered by ADP, available online at the App Store. First introduced in 2008, RUN has been enhanced with direct client feedback, bringing it to the point where business owners can now run payroll in just three seconds. The RUN app is available for iPhone, iPad and iPod touch. “Within the next two years, we're going to see businesses spending 35 per cent of their IT budgets on mobile,” said Gary Butler, ADP president and chief executive officer. “The fact is, the definition of ‘the office’ is changing.” With the RUN app, clients can:
•enter and review payroll information for employees and contractors
•pay via checks or direct deposits
•calculate earnings and deductions as well as federal, state and local taxes
•review hours and earnings to confirm accuracy before payroll is processed
•preview payroll liability and cash required, and confirm funds to be withdrawn
•review reports from the current and previous periods in real time.
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