: The Canadian Payroll Association - Submission

August 27, 2015

Expert Committee to Consider Financial Advisory
and Financial Planning Policy Alternatives
c/o Frost Building North, Room 458
4th Floor, 95 Grosvenor Street
Toronto, Ontario M7A 1Z1
Via email : Fin.Adv.Pln@ontario.ca

Re: Consultation on Financial Advisory and Financial Planning Policy Alternatives

Developing and delivering financial literacy education for young workers and other individuals new to Canada’s workforce

The Canadian Payroll Association congratulates the Ontario government for taking an interest in protecting Ontario residents from unregulated standards and conflicts of interest in the area of financial advisory and financial planning. We also recognize the importance of providing financial literacy education to young workers and other individuals new to Canada’s workforce. The Association is available to work with the Ontario government on increasing financial literacy, particularly as it relates to payroll and understanding one’s paycheque, statutory deductions, related pay statements and bank deposits.

Our subject matter expert volunteers have experienced many young employees and new immigrants to Canada not understanding the difference between their gross and net pay and they do not have a full understanding of the relationship between government social services and statutory deductions from their pay.

Before an individual can make financial planning decisions, they must first determine how much of their paycheque can be dedicated to financial investments. Understanding your pay is an important step in taking control of your financial well-being, and payroll practitioners are employees’ key communication points for understanding their pay and benefits.

In 2009, the Canadian Payroll Association developed a province-specific PowerPoint presentation and script targeting grade 9 and 10 students in Ontario, which was presented by Association subject matter volunteers. The purpose was to inform students about certain aspects of their work experience, including:

  • information required by the employer
  • statutory deductions including:
    • Canada Pension Plan contributions
    • Employment Insurance premiums
    • personal income tax
  • employer benefits
  • minimum employment standards such as statutory holidays, vacation pay and overtime
  • workplace safety and the role the WBIB plays with respect to workplace safety

This project was based on the Association’s “Understanding Your Pay” CD-ROM. Created in 2004 and updated in 2008, it was a resource kit for payroll practitioners to communicate payroll and benefit information to their employees in plain language.

Through Understanding Your Pay and other resources, the Canadian Payroll Association has contributed to organizations’ orientation of young workers and to school curriculum. The Association’s Understanding Your Pay model can also contribute to the government’s financial literacy objectives.

Payroll is mission-critical and impacts employees, business and government across Canada both from a monetary and social perspective.

The Canadian Payroll Association has been representing Canadian employers’ payroll interests since 1978. Our advocacy and education programs provide the legislative compliance content used in the payroll processing and remitting systems of over five hundred thousand small, medium and large employers. Members include 90 of Canada’s top 100 companies such as Bell Canada, Manulife, and The Royal Bank, and all of Canada’s payroll service bureaus and payroll software providers.

Canada's 1.5 million employers count on payroll professionals to annually pay $865 billion in wages and taxable benefits, $290 billion in federal and provincial statutory remittances, and $163 billion in health and retirement benefits, as well as produce 26 million T4s, 9 million T4As, and 7 million RL-1s - all while complying with over 190 regulatory requirements.

Please contact me if you have any comments or require clarification of any of the above.

Sincerely,

Steven Van Alstine, CPM, CAE
Vice-President, Education
Tel.: 416.487.3380 x 131
Fax: 416.487.3384
Steven.VanAlstine@payroll.ca

cc. Patrick Culhane, B.Comm., FCMA, CAE, President and CEO
Rachel De Grâce, CPM, CEB, Manager, Advocacy and Legislative Content