mirror of
https://github.com/alexandrebobkov/CanadianPayroll.git
synced 2025-09-08 06:29:18 +00:00
66 lines
3.4 KiB
ReStructuredText
66 lines
3.4 KiB
ReStructuredText
####################################
|
|
INTRODUCTION TO CANADIAN PAYROLL
|
|
####################################
|
|
|
|
Payroll is a necessary function in every organization that has employees,
|
|
as each employee expects to be paid for the work they perform. While the
|
|
amount of maximum remuneration that an employee receives for their work is
|
|
not legislated by any government (unless the employee is a federal or
|
|
provincial/territorial civil servant), there is legislation in place at
|
|
both the federal and provincial/territorial levels that governs many
|
|
aspects of processing employees' pay, their taxable benefits and observing
|
|
their rights as employees.
|
|
|
|
t is important to note that this course deals with payroll, the function of paying employees
|
|
for work performed for employers. Self-employed workers or contractors, who submit
|
|
invoices for the work they perform and receive payment through accounts payable and not
|
|
payroll, are not employees.
|
|
|
|
Both the federal and the Québec governments provide factors that can be used to determine
|
|
whether an employee-employer relationship exists. It is crucial to know how to determine the
|
|
type of relationship that exists between the worker and the organization and to ensure that
|
|
any payments made comply with legislation.
|
|
|
|
Payroll Objectives and Definitions
|
|
------------------------------------
|
|
|
|
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 cycle.
|
|
|
|
Every employee expects to receive their pay on the day it is due in the
|
|
manner arranged with their employer, either by cheque or direct deposit.
|
|
In addition to ensuring that employees have been paid, payroll
|
|
practitioners must also be able to communicate payroll information to
|
|
all stakeholders.
|
|
|
|
- **Payroll** is the process of paying employees in exchange for the services
|
|
they perform.
|
|
|
|
- **Legislation** refers to laws enacted by a legislative body. In Canada
|
|
there are many legislative sources that payroll practitioners must comply
|
|
with at two separate levels ─ the federal and the provincial/territorial
|
|
governments. Later in the chapter we will explore the compliance
|
|
requirements for the various pieces of legislation from these sources.
|
|
|
|
- **Compliance** is the observance of official requirements. For payroll
|
|
practitioners, this means performing payroll functions according to
|
|
federal and provincial/territorial legislative and non-governmental
|
|
stakeholder requirements.
|
|
|
|
The legislative requirements are termed **statutory**. This means they are
|
|
enacted, created, or regulated by statute, a law enacted by the legislative
|
|
branch of a government. Fines and penalties can be imposed if an organization
|
|
is not in compliance with the legislative requirements in each jurisdiction.
|
|
|
|
When dealing with federal and provincial/territorial government agencies,
|
|
payroll administrator must know the many pieces of legislation that
|
|
regulate their work and the compliance requirements associated with each.
|
|
Payroll administrators are responsible for ensuring their organization is
|
|
compliant with all payroll related legislation, thus eliminating the
|
|
potential for any fines or penalties.
|
|
|
|
In payroll, there are also compliance requirements from other non-government stakeholders,
|
|
for example, union collective agreements or group insurance policies. Payroll administrator
|
|
must therefore ensure the organization is compliant with all stakeholder requirements.
|