Companies in Canada are used to regarding payroll from a corporate viewpoint, but they should also take the time to look at it from the perspective of their employees.
The Canadian Payroll Association (CPA) recently released a survey in conjunction with National Payroll Week, which occurred earlier this month. Among the 3,500 workers who took part in the survey, nearly half (47 percent) said they believed they would come up against financial difficulty if their pay were to be delayed by even a week, suggesting that many of the nation's employees are just making ends meet. However, the most recent survey revealed that fewer workers are living from paycheck to paycheck compared to last year, when 57 percent of respondents anticipated that a delayed paycheck would leave them in dire financial straits.Researchers observe geographical variation
The study found that the proportion of employees living from paycheck to paycheck varied considerably between regions and provinces. More than half of employees in the Maritimes (New Brunswick, Nova Scotia and Prince Edward Island) anticipated negative financial repercussions if the delivery of their paychecks were to be postponed for some reason, as did residents of Manitoba and Ontario. In contrast, just one-third of Quebecois workers made the same prediction.Canadian payroll legislation
dictates how much of their earnings employees get to keep. A portion of the survey focused on what workers do with paychecks after they come through. Debt was identified as a main obstacle to saving, with two out of every five Canadian employees spending at—or in excess of—their net pay.
"This year's survey shows that more Canadian employees are now able to save more, and fewer are living pay cheque to pay cheque," observed CPA chairman Caroline Bernard in a statement
. "However, only 13 percent have saved half or more of their retirement funds goal."How payroll professionals can help
The payroll professionals employed by companies to oversee Canadian payroll compliance
and keep Canadian payroll services
running smoothly can work with employees to help them save more money. For instance, workers may wish to direct a portion of their net pay to a separate savings account or Registered Retirement Savings Program in order to reduce their income tax. Deploying payroll software
can help companies keep track of each worker's preferences.