Examining the Canadian Payroll Association's payroll compliance guidance
September 19, 2012
In 2008, the Canadian Payroll Association (CPA) developed a set of payroll compliance guidelines intended to be used as standards of practice for payroll practitioners and their employers. These were updated in 2011 and are based on Canada's 191 provincial and federal payroll legislation requirements, with the goal of assisting payroll practitioners with handling employment- and labor-related tasks and communicating earnings and statutory deductions.
The
Pay Statement Guidelines lay out the minimum information necessary for payroll practitioners to report on pay statements as follows:
- Employee name
- Employer name
- Pay period date
- Payment date
- Rate/hours
- Regular wages
- Vacation pay
- Statutory/public/general holiday pay/hours
- Overtime wages
- Overtime banked time taken
- Bonus
- Commissions
- Allowances
- Other earnings/payments
- Gross earnings
- Itemized deductions
- Net pay
The guidance also notes that some provinces have additional requirements. For instance, British Columbia and Alberta require banked overtime to be displayed on pay statements, while the addresses of Prince Edward Island employers must be included on statements issued in the province and Manitoba demands documentation of changes in rates and deduction amounts.
In its pay statement sample template, the CPA suggests several standards of practice regarding year-to-date totals, earning codes and statutory deductions. Specifically, earnings of all types must clearly appear and be delineated on pay statements as separate codes, along with statutory deductions, which should be listed in order of priority. Pay statements should also reflect year-to-date totals for deductions, earnings and hours.
Electronic pay statements Payroll software helps employers save money, automate processing and get information to their workers more quickly via electronic pay statements. Companies that already issue electronic pay statements or are looking to join the trend should be aware that they are required to provide employees with the means to privately view and access their statements, the choice to opt in or out of receiving statements electronically and the ability to privately and securely print the information. Under Quebec's standards, companies in the province must deliver pay statements as well as make the electronic documentation available to workers.
