compliance

docs/build/html/_sources/compliance.rst.txt

@@ -40,8 +40,8 @@ whether an employee-employer relationship exists. It is crucial to know how to d
 type of relationship that exists between the worker and the organization and to ensure that
 any payments made comply with legislation. 
 
-What are the Payroll's Objectives?
--------------------------------------
+Payroll Objectives
+------------------
 
 The primary objective of the payroll function in every organization is to pay employees
 accurately and on time, in compliance with legislative requirements, for a full annual payroll
@@ -83,7 +83,7 @@ In payroll, there are also compliance requirements from other non-government sta
 for example, union collective agreements or group insurance policies. Payroll practitioners
 must therefore ensure the organization is compliant with all stakeholder requirements.
 
-What are the Responsibilities of Payroll Function?
+Responsibilities and Functions of Payroll
 ---------------------------------------------------
 
 The responsibilities of the payroll practitioner will differ depending on the size of the
@@ -252,6 +252,110 @@ employees under federal jurisdiction in the following industries and organizatio
 
   - organizations whose operations have been declared for the general advantage of Canada or two or more provinces, and such Crown corporations as Canada Post Corporation, and the Canadian Broadcasting Corporation (CBC)
 
+Provincial/Territorial Governments
+~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+Under the Constitution Act of 1867, the exclusive legislative authority of the provinces and
+territories exists over:
+  - all laws regarding property and civil rights, which give the provinces/territories the authority to enact legislation to establish employment standards for working conditions
+  - employment in manufacturing, mining, construction, wholesale and retail trade, service industries, local businesses and any industry or occupation not specifically covered under federal jurisdiction
+
+The existing divisions between federal and provincial/territorial control impact payroll when
+dealing with employment/labour standards. Employment/labour standards are rules legislated
+by each provincial/territorial jurisdiction that dictate issues such as hours of work, minimum
+wage, overtime, vacation pay and termination pay requirements. 
+
+    **Example:**
+
+    The Gap is a retail business with stores across Canada. The workers in each store are
+    governed under the employment/labour standards legislated in the jurisdiction in which they
+    work. For example, the minimum general hourly wage in effect January 1, 2020 (which is
+    governed by provincial/territorial employment/labour standards) is higher in Ontario than in
+    Prince Edward Island. An employee working in Ontario would receive a higher hourly
+    minimum wage than an employee with the same position in Prince Edward Island.
+
+    Employers must follow the employment/labour standards legislated by the jurisdiction in
+    which their employees work, unless they are governed by federal labour standards. Federal
+    labour standards apply to certain industries and organizations, regardless of where the
+    employees work.
+
+The person or persons performing the payroll function must clearly understand under which
+employment/labour standards jurisdiction the employees of the organization fall.
+Organizations may have some employees who fall under federal jurisdiction and another
+group of employees who fall under provincial/territorial legislation.
+
+Internal Stakeholders
+~~~~~~~~~~~~~~~~~~~~~~
+
+Internal stakeholders are those individuals or departments closely related to the organization
+that the payroll department is serving. This group includes employers, employees and other
+departments in the organization.
+
+**Employers** - Management may require certain information from payroll to make sound
+business decisions. 
+
+**Employees** - Employees require that their pay is received in a timely and accurate manner to
+meet personal obligations. Employees must also be assured that their personal information is
+kept confidential. 
+
+**Other departments** - Many departments interact with payroll, either for information or
+reporting. According to the Canadian Payroll Association's 2020 National Payroll Week
+(NPW) Payroll Professional Research Survey, fifty-five percent of payroll practitioners
+report through the finance department and thirty-two percent report through the human
+resources department. Information such as general ledger posting, payroll and benefit costs
+and salary information must flow between payroll, human resources and finance in formats
+needed for their various requirements.
+
+In addition, other departments such as contracts and manufacturing often need payroll
+information for budgeting, analytical and quality purposes.
+
+External Stakeholders
+~~~~~~~~~~~~~~~~~~~~~~
+
+External stakeholders are organizations that are neither government nor internal stakeholders,
+yet have a close working relationship with the payroll function. Compliance with external
+stakeholder requirements is also a responsibility of the payroll department. In most cases,
+compliance will require that payroll request a cheque from accounts payable and send it to
+the external organization along with supporting documentation.
+
+**Benefit Carriers** are insurance companies that provide benefit coverage to employees.
+Payroll is responsible for deducting and remitting premiums for the insurance coverage to the
+carriers and for providing reports on employee enrolment and coverage levels.
+
+**Courts and the CRA** require payroll to accurately deduct and remit amounts ordered to be
+withheld through garnishments, third party demands, requirements to pay and support
+deduction orders.
+
+**Unions** require that payroll accurately deduct and remit union dues and initiation fees, and to
+ensure that the terms of the collective agreement are adhered to. It is estimated that just under
+one-third of the workforce in Canada belongs to a trade union. Payroll professionals must be
+familiar with the role and activities of trade unions and the responsibilities of the employer
+and the payroll department in a unionized environment.
+
+**Pension Providers** are third party pension plan providers that may require payroll to provide
+enrolment reports on participating employees and length of service calculations, and to remit
+employee deductions and employer contributions
+
+**Charities** have arrangements with some organizations to facilitate employee donations
+through payroll deductions. Payroll is responsible for remitting these deductions to the
+charity.
+
+**Third Party Administrators** are organizations that affect the administration of the payroll
+function. Examples of these external stakeholders are banking institutions or benefit
+organizations that offer Group Registered Retirement Saving Plans (RRSP). Payroll is
+responsible for deducting any employee contributions and remitting employer and employee
+contributions to the plan administrator.
+
+**Outsource/Software vendors** are payroll service providers or payroll software vendors that
+work with the payroll department to ensure the payroll is being processed accurately and
+efficiently.
+
+Legislation
+-----------
+
+The Employee-Employer Relationship
+-----------------------------------
+
 Review Summary
 --------------
 
@@ -272,9 +376,48 @@ A payroll practitioner's knowledge base includes a thorough understanding of pay
 processes, and payroll reporting. In addition to technical expertise, practitioners must also possess strong personal and 
 professional skills to manage responsibilities effectively and adapt to evolving regulatory environments.
 
+Stakeholders are the individuals, groups, and agencies—both internal and external to the organization—who have a vested 
+interest in the function and output of the payroll department. Their involvement and expectations influence how payroll is 
+managed, ensuring that it aligns with organizational goals and legal obligations.
+
+Payroll management stakeholders include federal and provincial/territorial governments, internal stakeholders, and external 
+stakeholders. Internal stakeholders consist of employees, employers, and other departments within the organization, all of 
+whom rely on accurate and timely payroll services. External stakeholders encompass benefit carriers, courts, unions, pension 
+providers, charities, third-party administrators, and outsource or software vendors. These entities interact with payroll 
+data and processes, often requiring coordination and compliance.
+
+The federal parliament holds the authority to enact laws for the peace, order, and good government of Canada. It exercises 
+control over industries and undertakings that are inter-provincial, national, or international in nature, as well as 
+rganizations deemed to serve the general advantage of Canada or multiple provinces, including Crown corporations. 
+In contrast, provincial and territorial legislatures have jurisdiction over direct taxation for regional purposes and laws 
+concerning property, civil rights, and employment in sectors such as manufacturing, mining, construction, wholesale and 
+retail trade, service industries, and local businesses. Any industry or occupation not specifically under federal 
+jurisdiction falls within provincial or territorial control.
+
+Employers are required to adhere to the employment and labour standards legislated by the jurisdiction in which their 
+employees work, unless they are governed by federal labour standards. Where legislation mandates employer compliance, 
+financial penalties or legal action may be imposed to enforce adherence and promote accountability.
+
 Review Questions
 ----------------
 
 What is the primary objective of the payroll department? 
 
-List four definitions of payroll. 
+List four definitions of payroll. 
+
+List the three types of payroll management stakeholders and provide an example of each.
+
+Explain the difference between legislation and regulation.
+
+What are two examples of sources of information that you use (or could use) to keep upto-date on payroll compliance changes?
+
+List three external stakeholders and explain their compliance requirements. 
+
+Indicate the jurisdiction the following employees fall under:
+
+  - Canada Post Corporation
+  - An insurance company
+  - A uranium mining company
+  - Canadian Broadcasting Corporation
+  - A retail department store with locations in every province
+  - A chartered bank.