The "Employer Burden" is the additional cost to the employee's basic wages. They are legislated by Federal and Provincial Governments across Canada. The total average burden is the same for 2009. We can hold the formula's for establishing labour rates at the 2008 levels.
EFFECTIVE JANUARY 1, 2009:
VACATION PAY 4.00%
CANADA PENSION PLAN: 4.95%
Pensionable Earnings up $1,400 to Maximum CPP Deduction per Employee
EMPLOYMENT INSURANCE: 2.42%
Maximum EI Deduction per Employee $732.00 (2.9% Increase)
STATUTORY HOLIDAYS: (9) 3.56%
Add .40 for each additional paid day off
WORKPLACE SAFETY & INSUR. (Auto Repair): 3.39%
Same as 2008 (Review Individual Pier Rating)
Total Employer Burden: 18.32% (Same as 2008)
Notes:
- The 9 Statutory Holidays are: New Years Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, Christmas Day, and Boxing Day (Each Province has variables on this)
- Do not forget to add any additional benefits you may provide such as Group Insurance, Enhanced Vacation Pay, Tool Allowance, and Registered Pension Plan etc.
- Separate payroll to identify the appropriate employees for auto repairs, gasoline, and office administration for Workplace Safety (Workers Compensation) Insurance Board purposes
- Stop deducting CPP and EI when the employee has reached the maximum contribution limit for the year
- As a rule of thumb use 27% as the burden multiplier to include Group Insurance and additional benefits paid/covered by the shop for employees.
Thursday, January 1, 2009
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