CCH summarizes recent Canadian payroll news

Interested in the latest news affecting Canadian payroll professionals? Here’s a summary of recent Canadian payroll news, as provided by PaySource, a monthly newsletter published by CCH Canadian Limited.

Alberta minimum wage. Effective September 1, 2014, the general minimum wage increased to $10.20, up from $9.95 per hour. The liquor server minimum wage rose to $9.20, up from $9.05 per hour.

The minimum wage for specified salespersons rose to $406 per week and domestic employees who live in their employer’s home will be entitled to be paid at least $1,937 per month.
Deductions for room and board rose to $3.35 for meals consumed by an employee and to $4.41 per day for lodging.

The increase is based on a formula used since 2011 that links the general wage rate to annual increases in Average Weekly Earnings (AWE) and the Consumer Price Index (CPI) in Alberta.

Manitoba minimum wage. Effective October 1, 2014, the minimum wage will increase to $10.70 per hour, up from the current rate of $10.45.

Prince Edward Island minimum wage. Effective October 1, 2014, the minimum wage rate will increase to $10.35 per hour up, from the current rate of $10.20 per hour.

Saskatchewan minimum wage. Effective October 1, 2014, the minimum wage will increase from $10.20 per hour, up from the current rate of $10 per hour.

Saskatchewan Amends the New Employment Act. Sections 3 and 4 of The Saskatchewan Employment Amendment Act, 2013, SS 2014, c. 27 (formerly Bill 128), were proclaimed in force on July 4, 2014. Sections 3 and 4 amend the employment standards provisions of the Act. Notably, there is now a change to the overtime provisions set out in the Act. The Saskatchewan Employment Act now specifies that where an employee works, on average, fewer than 30 hours a week, his or her employer will be required to pay overtime when he or she works more than eight hours in a day. Additionally, the Lieutenant Governor in Council’s power to make regulations to encompass certain new employment standards areas has been expanded.

CRA announces third quarter interest rates. The third quarter interest rates for 2014 were recently confirmed by the Canada Revenue Agency. They are:

• 5% on overdue income tax payments, insufficient income tax installment payments, unremitted employee source deductions, unremitted CPP contributions and Employment Insurance premiums, and unpaid penalties;

• 3% on overpayments paid to non-corporate taxpayers;

• 1% on overpayments paid to corporate taxpayers; and

• 1% deemed interest on employee and shareholder loans.

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