A red tape update for business

​2019 has started off with some regulatory changes and updates for business.  

After two roundtables with about 35 members regarding the upcoming provincial budget, it’s safe to say that one of the biggest challenges for business is regulatory compliance or the often-used, much maligned moniker, "red tape".   

Federally, the Canadian Chamber of Commerce has identified that there are around 380,000 regulations impacting business; add in the provincial and municipal levels and that number pushes closer to 500,000.
Red tape is the stuff of kitchen tables and late nights at the office for employers.  This article will touch upon three areas: CPP, WSIB and provincial health & safety inspections. 
 
Canada Pension Plan (CPP)
On January 1st the latest round of CPP enhancements started with the enhancement program expected to be in place until 2025.  Under the previous regime, the plan was designed to replace a quarter of a worker’s earnings whereas now that goal is to replace a third of a worker’s earnings.

Employers and employees over 18 contribute to the fund equally on earnings between $3,500 and the annual earnings limit, which for 2019 is $57,400.  If you are self-employed you would pay both portions.

To accomplish this the following changes have been made:

• On January 1st 2019 the employer/employee contribution increased to 5.1% up from 4.95% each
• Each year to 2023 the contribution rate will increase to reach an employer/employee rate of 5.95% each
• Starting in 2024 a second earnings ceiling will be introduced.  This second ceiling will have an employer/employee contribution of 4% each.

Employers will continue to make the deduction off paycheques as part of payroll taxes.

Workplace Safety and Insurance Board (WSIB)
Premium update: Now that WSIB is operating without an Unfunded Liability they are once again reducing rates for Schedule 1 businesses.  The 2019 rate reduction is 29.8%.   All but seven of the 148 rate groups are seeing a rate reduction while the remaining seven will hold steady at 2018 levels.

For years, WSIB has had a Small Business Health & Safety Program to encourage small businesses to build on their health and safety initiatives. The incentive was 5% of customers’ annual premium. Now WSIB has increased the incentive to $750 minimum.

Here is the amount businesses will receive based on their annual WSIB premium:
Premium                    Incentive
$1000-$1333                75% of annual premium
$1334-$14285              $1000
$14286-$90000            7% of annual premium

If you need more information please connect with us and we’ll connect you.

Health and Safety Inspections
The Ministry of Labour has scheduled its list of health and safety initiatives for 2019.   According to an information release “Ministry staff will visit workplaces such as warehouses, retail and grocery stores, manufacturing plants, hotels, group homes, health care organizations, mines and construction projects.

Occupational health and safety inspectors will look for health and safety violations involving issues such as slips, trips and falls, musculoskeletal disorders and respiratory hazards across all sectors. Sector-specific hazards such as suspended access equipment, personal protective equipment, machine guarding, ground control and violence will also be focused on. The goal is to raise awareness that safety is everyone’s
responsibility, to enhance workplace health and safety, and to proactively prevent workplace injuries, illnesses and deaths.”

Several initiatives have already started including an industrial check around machine guarding, a health initiative around group homes and a construction initiative around personal protective equipment.
An all-sector initiative on slips, trips and falls will start in March.

For more on these initiatives check out ontario.ca/page/workplace-inspection-initiatives

The Chamber has an array of members who can help in these areas if you need it.   
Our business directory can be found at peterboroughchamber.ca