The Quebec Employers Council (QEC) released the latest iteration of its annual salary forecasts publication earlier this month, which predicted that employees in the province will enjoy an average salary increase of 2.8 percent next year.
Although this is good news for workers, the Special Report on 2013 Salary Forecasts also anticipated that employee payroll tax rates will go up as well. Specifically, the 2.8 percent rise in wages will translate to an average yearly payroll tax cost of $168 per worker, on top of the rates dictated by the current Canadian payroll tax legislation
observed in the province.
The leading human resources consulting firms that contributed to the report—Aon Hewitt, Mercer, Morneau Shepell and Towers Watson—came up with this figure by crunching the various contribution rate numbers for 2013 and aligning these with the relevant Canadian payroll legislation
. The contributions factored into the projections include those announced for the Occupational Health and Safety Fund, the Quebec Health Fund and the Quebec Parental Insurance Plan.
The third edition of the QEC's Report Card on Quebec Prosperity, released in August, noted Quebecois employers face payroll taxes that are more than one-third higher than those paid by companies in the neighboring province of Ontario. What's more, organizations in Quebec pay 45 percent more in payroll taxes than the national average. These statistics led to the council awarding the province a C- grade for its manpower costs.
"In a competitive global market context, where access to an available, quality labor force at a competitive cost is a priority, employers have to be able to benefit from the best possible conditions (particularly in terms of payroll taxes) to create wealth and provide competitive wages to their employees," said QEC president Yves-Thomas Dorval in a recent statement
.The role of payroll software
As HR-related legislation changes quite frequently, it's important for employers to keep up with the latest facts and figures. Payroll tax software
takes the onus off of internal HR employees by automating much of the payroll management process. This mitigates the potential for human error that can be caused by unfamiliarity with new regulations, without the need to outsource tasks to third-party payroll specialists. With the Sage BusinessVision Payroll module, employers can customize the payroll process to meet their needs by defining benefits, deductions and pay schedules.