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compliance
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@@ -189,18 +189,17 @@ outsource/software vendors.
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Government Stakeholders
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~~~~~~~~~~~~~~~~~~~~~~~
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Government legislation provides the rules and regulations that the payroll function must
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administer with respect to payments made to employees. For this reason, it is important for
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the payroll practitioner to understand both the scope and the source of payroll-related
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legislation.
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Government legislation establishes the rules and regulations that govern payroll practices, particularly in relation to
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employee compensation. It is therefore essential for payroll practitioners to understand both the scope and the origin of all
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payroll-related laws.
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Canada is ruled by a federal government with ten largely self-governing provinces and three
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territories controlled by the federal government. Payroll practitioners have to be compliant
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not only with the federal government legislation, but with the provincial and territorial
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governments' legislation as well.
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As a result, payroll practitioners and their organizations are affected by the enactment of
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legislation at both the federal and provincial/territorial level.
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As a result, payroll departments are directly influenced by legislative developments at both the federal and provincial or
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territorial levels, making ongoing legal awareness a critical component of payroll management.
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The federal parliament has the power to make laws for the peace, order and good government
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of Canada. The federal cabinet is responsible for most of the legislation introduced by
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@@ -268,10 +267,14 @@ territories exists over:
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- all laws regarding property and civil rights, which give the provinces/territories the authority to enact legislation to establish employment standards for working conditions
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- employment in manufacturing, mining, construction, wholesale and retail trade, service industries, local businesses and any industry or occupation not specifically covered under federal jurisdiction
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The existing divisions between federal and provincial/territorial control impact payroll when
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dealing with employment/labour standards. Employment/labour standards are rules legislated
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by each provincial/territorial jurisdiction that dictate issues such as hours of work, minimum
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wage, overtime, vacation pay and termination pay requirements.
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Canada's division of authority between federal and provincial or territorial governments directly influences payroll
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practices, particularly in relation to employment and labour standards. These standards are governed independently by
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each province and territory, and outline key rules related to workplace conditions.
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Among the issues addressed are hours of work, minimum wage, overtime eligibility, vacation entitlements, and termination pay.
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Because each jurisdiction sets its own legislation, payroll practitioners must ensure compliance with the specific
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requirements applicable to the location where the employee works. Navigating these variations is an essential aspect of
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effective and lawful payroll administration.
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**Example:**
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@@ -295,9 +298,11 @@ group of employees who fall under provincial/territorial legislation.
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Internal Stakeholders
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~~~~~~~~~~~~~~~~~~~~~~
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Internal stakeholders are those individuals or departments closely related to the organization
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that the payroll department is serving. This group includes employers, employees and other
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departments in the organization.
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Internal stakeholders are the people and departments within the organization that rely on the payroll function to operate
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effectively. They form the core audience served by payroll and include employees who depend on accurate and timely
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compensation, employers who oversee workforce management, and other internal teams—such as human resources, finance,
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and operations—that collaborate closely with payroll for data sharing, planning, and compliance. These stakeholders play a
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direct role in shaping how payroll services are delivered and supported across the organization.
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**Employers** - Management may require certain information from payroll to make sound
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business decisions.
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