TORONTO, Feb. 11, 2014 /CNW/ - In his 2014 Federal Budget, Finance
Minister Flaherty announced one payroll-related measure that would ease
some administration burden for Canadian employers.
Increased payroll remittances thresholds will benefit some employers:
Currently, every employer with an average monthly withholding amount
(AMWA) of $15,000 is classified as an accelerated remitter. As well,
employers with a $50,000 AMWA are required to remit bi-weekly. Budget
2014 proposes the introduction of increased thresholds for accelerated
remitters to $25,000 (from $15,000) and to $100,000 (from $50,000). The
Department of Finance has estimated that 50,000 employers will see
their required number of remittances cut in half.
"Increased thresholds for accelerated remitters will lower
administration costs for some employers that were previously required
to remit on a more frequent basis," said Patrick Culhane, President and
CEO of the Canadian Payroll Association. "The world has changed
dramatically since 1990 and an average payroll remittance of $50,000
per month is no longer a large business."
Despite this measure, the Canadian Payroll Association is disappointed
that more payroll-related measures to reduce the financial and
administrative burden for employers were not included in the 2014
Budget. The Canadian Payroll Association had advocated that the Federal
Government introduce more significant payroll-related measures to
support more efficient and effective payroll administration for all
stakeholders. For example, enabling employers to provide electronic T4
slips to employees would have reduced paper T4s and saved employers
more than $73 million annually.
Some other components of the 2014 Federal Budget that may also affect
Extending changes to the pension transfer limits
Enhanced access to sickness benefits
Strengthening compliance with GST/HST registration
Canada's 1.5 million employers annually produce more than 26 million T4
slips, 10 million T4As and nearly 7 million RL-1s in Quebec. They
annually pay $860 billion in wages and benefits, $268 billion in
federal and provincial statutory remittances and $94 billion in health
and retirement benefits, while complying with more than 190 federal and
provincial regulatory requirements.
The Canadian Payroll Association has been advocating for more efficient
payroll legislative processes for Canadian employers since 1978. The
Association's advocacy and education programs provide the legislative
compliance content used in the payroll processing and remitting systems
of over five hundred thousand small, medium and large employers. The
Canadian Payroll Association's 18,500 members include 90 of Canada's
top 100 companies, as well as Canada's payroll service and software
providers. Canadian organizations seek and value the expertise of
Canadian Payroll Association members to be compliant and contribute to
For more information on the Canadian Payroll Association's Professional Development Seminars, Certification Programs and Benefits of Organizational or Professional Membership, visit payroll.ca.
CPA representatives are available for Budget 2014 commentary.
Image with caption: "The Canadian Payroll Association would have liked to see more payroll-related measures in Federal Budget 2014 to reduce the financial and administrative burden for employers. Canada's 1.5 million employers annually pay $860 billion in wages and benefits, $268 billion in federal and provincial statutory remittances and $94 billion in health and retirement benefits, while complying with more than 190 federal and provincial regulatory requirements. (CNW Group/Canadian Payroll Association)". Image available at: http://photos.newswire.ca/images/download/20140211_C9447_PHOTO_EN_36587.jpg
SOURCE: Canadian Payroll Association
For further information:
Patricia Jordan, Manager, Marketing & Communications,
416-487-3380 x 111 or
Hélène Robitaille, Communications Coordinator,
416-487-3380 x 139