Preparing your report for the year 2007 Public Sector Salary Disclosure Act 2007 Guide

Table of Contents

Introduction

Quick Guide to Public Sector Salary Disclosure

Section 1: Is my organization covered under PSSDA?
  1.1 Public Sector Organizations specifically listed as "Employers" in the Act
  1.2 Organizations considered as "Employers" if they meet the funding condition
  1.3 Organizations excluded from the Act
  1.4 The funding condition

Section 2: How do I know if my organization has any employees whose salary should be disclosed?
  2.1 Employees
  2.2 Calculation of the salary paid
  2.3 Difference between salary rate and salary paid
  2.4 No employee salaries to disclose

Section 3: How does my organization disclose the employees earning $100,000 and more?
  3.1 Record of Employees' 2007 Salaries and Benefits
  3.2 How to complete the Excel Template

Section 4: What should I do with my disclosure record or "Statement of No Employee Salaries to Disclose"?
  4.1 Submit the report to the funding ministry paper copy or electronically
  4.2 Make the Record or Statement available on the premises of your head office

Section 5: What are my other responsibilities as an employer under PSSDA?
  5.1 Inform your employees
  5.2 Answering questions on the components of the salary paid or taxable benefits
  5.3 Privacy of individuals and personal information
  5.4 Penalties for not making the required disclosure
  5.5 Deadline for disclosure

Section 6: The Public Sector Salary Disclosure Amendment Act, 2004
  6.1 Salary disclosure in annual reports
  6.2 Hydro One and Ontario Power Generation salary disclosure

List of Contacts


Introduction

The Public Sector Salary Disclosure Act (PSSDA) was passed in 1996 to make Ontario's broader public sector more open and accountable to taxpayers. The Public Sector Salary Disclosure Act requires organizations that receive public funding from the Government of Ontario to disclose annually the names, positions, salaries and total taxable benefits of employees paid $100,000 or more in a calendar year.

The Act covers the Government of Ontario, Crown Agencies, Municipalities, Hospitals, Boards of Public Health, School Boards, Universities, Colleges, Hydro One, Ontario Power Generation, and other public sector employers who receive a significant level of funding from the provincial government.

The main requirement for the organizations covered by the Act is to make their disclosure or if applicable to make their statement of no employee salaries to disclose available to the public by March 31. Organizations are also required to send their disclosure or statement to their funding ministry by March 31.

The purpose of this guide is to:

  1. help employers determine if they are covered under the Act
  2. explain what to disclose, how salaries and total taxable benefits are calculated and how to prepare the disclosure report
  3. explain how to comply with the legislative requirements

If you have any questions after reading this guide, please contact your responsible ministry. A list of contacts, phone numbers and e-mail addresses is available at the end of the guide.

Additional information can also be found at the Public Sector Salary Disclosure section of the Ministry of Finance website:
http://www.fin.gov.on.ca/en/publications/salarydisclosure

The Public Sector Salary Disclosure Act, 1996 and the related Regulations are available on the Ontario E-Laws website http://www.e-laws.gov.on.ca

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Quick Guide to Public Sector Salary Disclosure

Flowchart: Quick Guide to Public Sector Salary Disclosure
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Section 1: Is my organization covered under PSSDA?

This section explains which organizations are covered and the funding condition.

1.1 Public Sector Organizations specifically listed as "Employers" in the Act

All these organizations are covered under the PSSDA:

  • The Crown in Right of Ontario (the Provincial Government)
  • Municipalities
  • School Boards
  • Universities
  • Colleges of Applied Arts and Technology
  • Post secondary institutions in Ontario, the enrolments of which are counted for purposes of calculating annual operating grants entitlements
  • Hospitals (as defined in the Public Hospital Act, Private Hospital Act and Community Psychiatric Hospitals Act)
  • Boards of Health
  • Agencies established by the Province of Ontario
  • Authorities, boards, commissions, corporations, offices and organizations where a majority of the directors, members or officers are appointed under the authority of the Lieutenant Governor in Council by Order in Council
  • Office of the Lieutenant Governor in Council, Office of the Assembly, members of the Assembly and offices of persons appointed on an address of the Assembly
  • Hydro One Inc., Ontario Power Generation Inc. and each of their subsidiaries

1.2 Organizations considered as "Employers" if they meet the funding condition

Some organizations are covered only if they received a significant amount of funding from the government during the calendar year:

  • A local board of a municipality
  • Corporations, with share capital, where at least 90% of the issued shares are owned or held by any of the organizations listed above and every wholly-owned subsidiary thereof
  • Corporations without share capital, the majority of whose members, directors or officers are appointed or chosen by any of the organizations listed above and every wholly-owned subsidiary thereof
  • Not‑for‑profit organizations receiving funding from the Province

1.3 Organizations excluded from the Act

The following organizations are not covered under the Act:

  1. Organizations that carry on their activities for the purpose of gain or profit to their members or shareholders
  2. Not-for-profit organizations, local boards of a municipality, corporations owned or controlled by the public sector organizations listed above (in section 1.1), if they do not meet the funding condition.

If your organization does not meet the definition of "employer" under the Act, the Act does not apply to you, and no disclosure is necessary.

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1.4 The funding condition

Some organizations (such as not-for-profit organizations, local boards of municipalities, and corporations owned or controlled by the public sector organizations listed in the Act) are covered if they received funding from the government as detailed below.

Generally, funding means transfer payments. A transfer payment is a transfer of money to an organization for which the government making the transfer does not:

  • receive goods or services directly in return, as would occur in a purchase or sale transaction;
  • expect to be repaid in the future, as would be expected in the case of a loan; or
  • expect a financial return, as would be expected in the case of an investment.

The major types of transfer payments are entitlements, shared cost agreements and grants.

Funding received from the
Government of Ontario in 2007

Requirements under PSSDA

Under $120,000

The organization is not covered under PSSDA and does not have to disclose.

At least $120,000 but under
$1 million

The organization is covered under PSSDA if the funding represents 10 per cent or more of the organization's gross revenues for the calendar year. In that case, the organization must disclose.

If the funding represents less than 10 per cent of the organization's gross revenues for the calendar year, the organization is not required to disclose. In this case, Management Board of Cabinet may require evidence that the funding is less than 10 per cent of the organization's gross revenues for the calendar year.

$1 million and more

Organization is covered under PSSDA and must disclose.

Total Funding

An organization may receive funding from more than one ministry. Ultimately, it is the responsibility of the organization to determine whether it meets the funding criteria since the Act refers to total funding from the government, not just from one ministry.

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Section 2: How do I know if my organization has any employees whose salary should be disclosed?

This section explains how to identify the employees captured by the Act and how to calculate their salary paid. Ultimately, it is the organization that will know if it has to either disclose employees or complete a statement of no employee salaries to disclose.

2.1 Employees

Everyone to whom your organization issues a T4 slip is considered an employee. This includes a person who is a director or officer of an employer and someone who is elected or appointed under the authority of an Act of Ontario.

Employees on secondment are considered employees of the organization that issued their T4 even if the organization is reimbursed for all or part of the employee's salary. You will find more details on how to disclose "seconded" employees in section 3.2(5). 

2.2 Calculation of the salary paid

It is only when an employee's salary is at least $100,000 that an organization is required to disclose the salary amount and the value of the taxable benefits.  The $100,000 salary cutoff does not include taxable benefits.  The definition of salary in PSSDA is tied to the Income Tax Act. Therefore, it is necessary to use specific boxes from the T4 slip to calculate the salary paid and the taxable benefits.

Salary Calculation

Salary Paid = (Box 14 of T4 slip)  -  (Boxes 30+32+34+36+38+40 of T4 slip)

Do not include amounts listed on the T4A slip when calculating the salary paid.

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2.3 Difference between salary rate and salary paid

The salary paid on the T4 slip may not be the same as the salary rate for the position, or the salary earned in 2007. There may be differences due to payments such as retroactive pay, grievances prior to 2007, etc. Payment for overtime, which is usually paid on top of the annual salary, pushes the amount of salary paid above the annual salary rate.

2.4 No employee salaries to disclose

An employer covered under the Act is required to produce a Statement of No Employee Salaries to Disclose if it has no employees to disclose (i.e. no employee was paid $100,000 or more). Submit the completed statement to the responsible ministry.  This form is available on the Ministry of Finance website at:
http://www.fin.gov.on.ca/en/publications/salarydisclosure/2008/

Submit the statement by fax or e-mail to the funding ministry or ministries by March 7, 2008Section 4 of this guide provides more information on where to send your statement. A list of ministry contacts is available at the end of this guide.

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Section 3: How does my organization disclose the employees earning $100,000 or more?

This section explains how to complete the Record of Employees' 2007 Salaries and Benefits when an organization has employees to disclose.

3.1 Record of Employees' 2007 Salaries and Benefits

If your organization has employees who were paid $100,000 or more, complete a Record of Employees' 2007 Salaries and Benefits. The template is available at:
http://www.fin.gov.on.ca/en/publications/salarydisclosure/2008/

Submit the record to the funding ministry or ministries preferably in electronic format by March 7, 2008. Section 4 explains where to send the record. A list of ministry contacts is also available at the end of the guide.

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3.2 How to complete the Excel Template

The Record of Employees' 2007 Salaries and Benefits consists of seven fields that need to be completed for each employee.

1. Sector

Choose from one of the following in the dropdown menu:

  • Government of Ontario
    • Ministries
    • Legislative Assembly and Offices
    • Judiciary
    Example: Government of Ontario - Ministries
  • Crown Agencies
  • Municipalities and Services
  • Hospitals and Boards of Public Health
  • School Boards
  • Universities
  • Colleges
  • Hydro One and Ontario Power Generation
  • Other Public Sector Employers
2. Employer

Provide the organization’s legal name spelled in full.  Do not abbreviate.  Please be consistent with the name appearing in last year’s disclosure, if applicable.  Ministry of Finance will abbreviate where necessary.

3. Surname

Use the employee's surname, as shown on the 2007 T4 Slip. 
Do not use "Estate of" in the case where an employee is deceased. 
Use upper case text.

4. Given name

Use the employee's full given name (not only first initial), as shown on the 2007 T4 slip.
Do not use "Estate of" in the case where an employee is deceased.
Use upper case text.
Insert a period after middle initial(s) in the name.

5. Position Title

Use the position title held on December 31, 2007. If the employee was no longer with the employer at the end of 2007, then use the position title last held by the employee.

Spell the position title in full (no abbreviation should be used as there is no character limit).

Certain expressions should not be used in the position title as they provide extra information that is not required by the Act. Adding these expressions to a position title is an infringement of the Freedom of Information and Protection of Privacy Act (FIPPA). Some examples are:

  • Do not use the words "temporary" or "former."
  • Do not use the word "Acting." The only exception is when there is an official contract or paper trail which officially designates the position as acting.
  • Do not use the word "seconded." Employers can use the expression only if they receive a written consent from their employee.
6. Salary Paid

Amount paid by the employer to the employee in 2007.

  • To calculate the salary paid, subtract boxes 30, 32, 34, 36, 38, and 40 from box 14 of the T4 slip.
  • Do not provide any breakdown of the components of the salary.
  • Salary Paid = (Box 14)  -  (Boxes 30+32+34+36+38+40)
7. Taxable Benefits

Amount paid by the employer to the employee in 2007 as reported on the T4 slip.
(Total of boxes 30, 32, 34, 36 and 40).

  • Do not provide any breakdown of the specific taxable benefits.
  • Taxable Benefits = Boxes 30+32+34+36+40

Examples of fictitious situations and sample disclosures have been provided below for illustration purposes only.

Example 1
Jane Doe is the Chief of Staff for Red Hospital. In 2007 she earned a regular salary of $97,000 and taxable benefits of $525.16. She also received a retroactive salary payment of $4,500 for 2006, as a result of settlement of negotiations for a salary increase beginning in 2004. Jane’s T4 for 2007 reflects a salary of $101,500 ($97,000 + $4,500) in the year 2007.

Jane Doe’s T4:

  • Box 14 amount is $102,025.16
  • Box 30 = 0, Box 32 = $525.16, Box 34 = 0, Box 36 = 0, Box 38 = 0 and Box 40 = 0
  • Salary paid = (Box 14) - (Boxes 30+32+34+36+38+40)
                       = $102,025.16 - $525.16 = $101,500
  • Taxable Benefits = Boxes 30+32+34+36+40 = 0+525.16+0+0 = $525.16

Example 2
Rose Lee is a registered nurse and a permanent employee at the Red Hospital. She is on a secondment to the Blue Hospital to work on a special project from May 2007 to December 2008. Rose is still paid by Red Hospital during that time but Blue Hospital reimburses part of her salary to Red Hospital.

At the end of the year:

  • Red Hospital issues a T4 for Rose for 2007.
  • The calculation of her salary paid for PSSDA is over $100,000.
  • Rose's position title at Red Hospital is Registered Nurse but the pay system reported her as "Registered Nurse seconded to Blue Hospital."
  • Blue Hospital does not issue a T4 for Nurse Rose.

In this case, Rose will be disclosed under Red Hospital. Her position title will be Registered Nurse. If Red hospital wants to mention that Rose is on secondment with Blue Hospital, Rose needs to give written consent. If she accepts, her position title will be "Registered Nurse (seconded to Blue Hospital)."

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Sample record of disclosure
RECORD OF EMPLOYEES' 2007 SALARIES AND BENEFITS
Sector Employer Surname Given Name Position Title Salary Paid Taxable Benefits
Hospital and Boards of Public Health

Red Hospital

DOE JANE Chief of Staff $101,500.00 $525.16
Hospital and Boards of Public Health Red Hospital LEE ROSE Registered Nurse $101,040.00 $200.00
I certify that the information provided on this Record is correct in accordance with the Public Sector Salary Disclosure Act, 1996.

Name:


Position Title:


Phone Number:


Date:

Prepared under the Public Sector Salary Disclosure Act, 1996
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Section 4: What should I do with my disclosure Record or Statement of No Employee Salaries to Disclose?

This section explains the two requirements for disclosure under the Act.

4.1 Submit the report to the funding ministry - paper copy or electronically

Submit your Record or Statement to your funding ministry as shown below. A list of contacts for each ministry is available at the end of this guide.

Employer

Ministry Receiving Record

Agencies and other bodies owned or controlled by the Provincial Government

Every ministry that provided funding.

Municipalities and Services

Ministry of Municipal Affairs and Housing

School Boards

Ministry of Education

Universities

Ministry of Training, Colleges and Universities

Colleges

Ministry of Training, Colleges and Universities

Hospitals

Ministry of Health and Long-Term Care

Boards of Health

Ministry of Health and Long-Term Care

Hydro One Inc., Ontario Power Generation Inc. and each of their subsidiaries

Ministry of Energy

Employers subject to the funding condition

Every ministry that provided funding. You may have to report to more than one ministry.

Please submit your record by March 7, 2008 to your funding ministry.

Each year the Ministry of Finance publishes a compendium of statements and records. To ensure your record or statement is published in the compendium, please submit it by March 7, 2008.  The Ministry of Finance also publishes an addendum a few months after the release of the compendium to include records and statements received after the production of the compendium.

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4.2 Make the Record or Statement available on the premises of your head office

Your organization’s record or statement must be available for inspection without charge during your normal business hours from March 31 to December 31 of the same year.
Copies are required to be available on request during and after the above period. You may charge 20 cents per page for providing a copy. However, you may waive this fee at your discretion. No separate fee is allowed for postage.

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Section 5: What are my other responsibilities as an employer under PSSDA?

This section explains how to deal with some of your employees' questions or concerns regarding the disclosure of their salaries. It also informs the employers of their responsibilities.

5.1 Inform your employees

We recommend that you tell your employees about the disclosure of their salaries before you release the information. This will provide them with the opportunity to confirm the information before it is published.  You might want to refer them to the Ministry of Finance website where they will find more information on the PSSDA.
http://www.fin.gov.on.ca/en/publications/salarydisclosure/

5.2 Answering questions on the components of the salary paid or taxable benefits

The Act authorizes employers to disclose the value of the salary paid and the taxable benefits as defined by the Canada Revenue Agency. The Act does not authorize employers to disclose what is specifically included in the salary paid or the specifics of the benefits.

5.3 Privacy of individuals and personal information

Employers cannot be held liable for making this disclosure if they reasonably believed that they were required to make the disclosure. A non‑disclosure clause in an employment contract cannot be used to avoid disclosure. If you have any doubts about what you are required to disclose, check with your funding ministry. The Act only covers information that it specifically authorizes employers to release, as explained in section 3 of this guide.

5.4 Penalties for not making the required disclosure

The Act allows Management Board of Cabinet to direct a ministry to withhold part or all of the transfer payment to an employer if the employer has failed to comply with the Act. The funds will be paid once the employer complies. If the employer fails to comply after one year (by March 31 of the following year) the employer ceases to be entitled to the payment withheld. Management Board of Cabinet can also withhold funds if an organization fails to provide evidence regarding revenues under the funding criteria (i.e. whether at least 10 per cent of gross revenues came from the Province or not).

5.5 Deadline for disclosure

Employers covered under the Act must make the Record of Employees' 2007 Salaries and Benefits or the Statement of No Employee Salaries to Disclose public by March 31.

Send your record or statement by March 7, 2008 to ensure it is published in the compendium.

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Section 6: The Public Sector Salary Disclosure Amendment Act, 2004

The Public Sector Salary Disclosure Amendment Act, 2004 has been in effect since April 15, 2004.

6.1 Salary disclosure in annual reports

Employers are relieved from having to include salary disclosure with their annual reports if that disclosure is made available on a public website (a corporate website or the Ministry of Finance website).

Prior to the amendment, the Public Sector Salary Disclosure Act required an employer, which normally issues an annual report, to include the salary disclosure with their annual report.

6.2 Hydro One and Ontario Power Generation salary disclosure

This amendment specified that Hydro One Inc., Ontario Power Generation Inc. and each of their subsidiaries are part of the public sector and designated them as public sector “employers” for the purposes of the Act.

Hydro One Inc., Ontario Power Generation Inc. and each of their subsidiaries are required to provide salary disclosure to the Ministry of Energy.  This applies for 2004 and future years.

List of Contacts

Ministry E-Mail Address Phone Number Fax Number
Agriculture, Food and Rural Affairs pssd.omafra@ontario.ca 519-826-3328 519-826-4130
Attorney General pssd.mag@ontario.ca 416-326-4526
416-314-2118
416-326-2298
Children and Youth Services pssd@css.gov.on.ca 416-326-8021 416-325-5397
Citizenship and Immigration pssd.mci@ontario.ca 416-326-8388 416-325-6387
Community and Social Services pssd@css.gov.on.ca 416-326-8021 416-325-5397
Community Safety and Correctional Services David.Peng@ontario.ca 416-212-7491 416-325-3465
Culture pssd.mci@ontario.ca 416-326-8388 416-325-6387
Democratic Renewal Secretariat Anne.Allan@ontario.ca 416-325-6601 416-325-6715
Economic Development and Trade Anne.Allan@ontario.ca 416-325-6601 416-325-6715
Education pssd.met@ontario.ca 416-314-3044 416-325-1835
Energy Anne.Allan@ontario.ca 416-325-6601 416-325-6715
Environment pssd.ene@ontario.ca 416-314-9291 416-314-9313
Finance pssd.finanreven@ontario.ca 905-433-6716 905-433-6588
Francophone Affairs pssd@css.gov.on.ca 416-326-8021 416-325-5397
Government and Consumer Services John.Leibycz@ontario.ca
Niloufer.Srivastav@ontario.ca
416-327-8506
416-326-8915
416-327-4048
Health and Long-Term Care pssd.moh@ontario.ca 416-327-4374 416-327-8791
Health Promotion Winnie.Chan@ontario.ca 416-326-4356 416-326-4366
Intergovernmental Affairs Anne.Allan@ontario.ca 416-325-6601 416-325-6715
Labour T.B.D. 416-326-7249 416-326-7241
Municipal Affairs and Housing pssd.mah@ontario.ca 416-585-6990 416-585-7328
Natural Resources pssd.mnr@ontario.ca 705-755-1303 705-755-3108
Northern Development and Mines T.B.D. 705-564-7973 705-564-7954
Ontario Secretariat for Aboriginal Affairs Carolanne.Allen@ontario.ca 416-326-4749 416-212-1644
Public Infrastructure Renewal Anne.Allan@ontario.ca 416-325-6601 416-325-6715
Research and Innovation Anne.Allan@ontario.ca 416-325-6601 416-325-6715
Revenue pssd.finanreven@ontario.ca 905-433-6716 905-433-6588
Small Business and Entrepreneurship Anne.Allan@ontario.ca 416-325-6601 416-325-6715
Tourism pssd.mci@ontario.ca 416-326-8388 416-325-6387
Training, Colleges and Universities pssd.met@ontario.ca 416-212-4580 416-314-9979
Transportation pssd.mto@ontario.ca 905-704-2672 905-704-2720
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