Staying up to date with changing legislation and regulations can be troublesome for busy professionals. With several new rules affecting the 2020 payroll, BAASS has put together a summary of what you need to know.
A discussion took place in 2013 between the Canadian Revenue Agency (CRA) and Revenu Québec in regards to giving larger employers an extended deadline, without penalty or interest, to process the final reconciliatory remittance. The CRA declared the Payment on Filing (PoF) Policy in early 2019, this created further reconciliation remittance deals for the last day of February for the previous tax year (if eligible). This policy has been in place since January 2020 for the 2019 reporting year.
“The government’s approach is a win for both employers and will enable organizations to manage their year-end process effectively and efficiently while saving millions of dollars in interest and penalties”. - Peter Tzanetakis
Revenu Québec later declared an administrative policy permitting employers whose remittance frequency is weekly or twice monthly to remit the final remittance of the year before January 16th of the following year, without penalty. However, employers are subject to pay interest, which is calculated according to their remittance date and frequency.
The 2020 Legislative Compliance Rates Sheet, gives insights into:
CPA line codes have been increased from three to five digits.
For example:
As of February 2020, the subsequent changes will take effect:
Authorization processes are designed to:
Note: The Canadian Payroll Association (CPA) will provide additional details as they are made available.
Click here for all Canadian minimum wage updates.
Medical Services Plan (MSP) premiums have ended as of January 1st, 2020.
Despite the fact that premiums have ended the enrollment in MSP remains obligatory for all British Columbia residents. Payroll can continue to encourage employees to enroll by submitting an application.
Bill 21 Ensuring Fiscal Sustainability Act has been in effect since December 5th, 2019. This new bill makes changes to the Employment Standards Code, stating that an Employment Standard Officer shall refuse to accept a complaint made by an employee who is bound by a collective agreement. This new Bill also has made changes regarding the definition of “employee”.
Current Definition |
Bill 21’s New Definition |
“employee” means an individual employed to do work who receives or is entitled to wages and includes a former employee. |
“employee” means an individual employed to do work who receives or is entitled to wages and includes a former employee but does not include an individual who is a member of a class of individuals excluded by the regulation. |
The Employment Standards Code Amendment Act addresses the leave for victims of interpersonal violence. This bill expands on current provisions related to Domestic Violence Leave in the Employment Standards Code, increasing eligibility for an employee who is a victim of sexual violence or stalking. An employee may take leave to assist their child or dependents who experience or are exposed to interpersonal violence.
As of December 10th, 2019, Bill 132 The Better for People, Smarter for Business Act has been in effect. Introducing changes to legislation including The Pension Benefits Act.
Revenu Québec will be implementing a new method for determining deduction code amounts, reducing the interval between amounts to $1,000.
Single payments under a Registered Pension Plan (RPP) or a Deferred Profit Sharing Plan (DPSP), included in Box C, must also include C-10 in a blank box followed by the date of the payment.
Health service fund contribution rates are as shown in the table below, and the total payroll threshold for the reduced contribution rate is 6 million dollars for 2020.
Total payroll (TP) |
Primary and manufacturing sectors |
Service and construction sectors |
$1 million or less |
1.25% |
1.65% |
more than $1 million, but less than $6 million |
0.6480 + (0.6020 × TP/1,000,000)1 |
1.1280 + (0.5220 × TP/1,000,000 |
more than $6 million |
4.26% |
4.26% |
Note: The contribution rate must be rounded off to two decimal places.
Note: The rate for public sector employees is 4.26% regardless of the total payroll for the year.
As of April 1st, 2020, the minimum wage has increased from $12.25 to $12.85.
Bill 8 An Act to Amend the Labour Standard Act has not yet been enforced, however, gained Royal Assent on December 6th, 2019. Removing the requirement for parental leave. No later than 35 weeks after a child is born or come into custody
Note: The Canadian Payroll Association will advise when the legislation comes into force.