Federal Liberals Table 2017 Budget
Authored By: Simon Laxon | Publish Date: March 23, 2017
Authored By: Simon Laxon | Publish Date: March 23, 2017
Bill Morneau has tabled his second budget as Liberal Finance Minister. While there is little new with respect to retirement and pension plans, there are some items that are of interest to employers and benefit plan sponsors and administrators.
Changes In EI Benefits
With respect to benefits under the Employment Insurance Act, the budget proposes:
The government will also amend the Canada Labour Code to protect the jobs of any federally regulated employees who take these new or extended periods of EI leave. However, provincial employment standards legislation may also have to be amended before provincially regulated employees are similarly protected.
Flexible Work Arrangements
The government maintains its commitment to amend the Canada Labour Code to enable federally regulated employees to negotiate flexible work arrangements, such as flexible start and finish times and the ability to work from home.
New Leaves
Though it provides few details, the budget proposes to add several new unpaid leaves protected under the Canada Labour Code for:
The flexibility of the current bereavement leave will also be increased.
Fertility-Related Medical Costs
The budget proposes that the application of the Medical Expense Tax Credit (METC) will be clarified so that individuals who require medical intervention to conceive a child are eligible to claim the same expenses that would generally be available for individuals on account of infertility.
Accessibility for People with Disabilities
The budget renewed the government’s commitment to develop federal accessibility legislation and remove barriers for disabled Canadians in areas of federal jurisdiction.
Use of Private Corporations for Tax Planning
To try to curb the use of private corporations to, in the government’s view, unfairly reduce taxes for high income earners, the budget proposes that the government will release a policy paper to look at how private corporations can be used to:
Home Relocation Loan Deduction
The government intends to eliminate the deduction that employees can currently receive for home relocation loans.
Electronic Distribution of T4 Information Slips
Beginning in 2017, the government intends to allow employers to send T4 slips to active employees without requiring their express consent (as is the case now). The employer will have to have sufficient privacy safeguards in place (specifics of which will be determined by the Minister of National Revenue) and will still have to send paper copies if the employee requests.
Simon Laxon (LL.B.) is a senior consultant at Willis Towers Watson.
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