PEO CANADA

• 07Jun

  Can I Get a Raise…HST is coming?

  Human Resources, Payroll Please leave a Comment

  July 1^st is not just Canada Day for residents in British Columbia and Ontario; it is the first day of the new Harmonized Sales Tax (HST) in both provinces. So what is all the fuss about and how will it affect employers?

   

  What is in effect now?

  There are currently two forms of sales tax in both provinces: Provincial Sales Tax (PST) and the Goods & Services Tax (GST). The GST is federally regulated and applies to all Canadian provinces at a rate of 5%. PST is provincially regulated and is 7% in British Columbia and 8% in Ontario. There are many tax-exempt goods and services and many items are subject to only one of the two taxes.

   

  What is the HST?

  The HST will combine both the PST and GST into one tax. This is supposed to create a more efficient value-added tax that will reduce the cost of goods thus making manufacturers and exports more competitive. For further information, please follow the links below

   

  BC - Government of British Columbia HST FAQ

  Ontario - Government of Ontario - HST Website

   

  What is the fuss about?

  Any mention of a new tax brings its fair share of anguish, especially during a recession. There is a general concern that it will simply increase the cost of living for all residents and that consumers will never see the benefits of reduced costs to companies. The general consensus among Canadians is: “What was taxed at 5% will now be taxed at 13% (ON).”      

   

  How will the HST affect your employees?

  Both provinces are implementing this tax with the intention of stimulating the economy and are taking approaches to reduce the net effect by instituting rebates, credits, and in some cases, a reduction of income tax rates. As expected with any consumption tax, those who spend more will pay more! According to economists, low to middle income earners will see minimal changes to their cost of living; however, the net results are difficult to judge until the tax comes into effect and there are hard numbers to analyze.  

   

  How should my company respond to employee concerns?

  You may get inquiries from employees in Ontario and British Columbia because of the new HST. As always, companies should align wages with their corporate strategy and individual financial situation. Without data supporting a large increase to the cost of living it will be difficult to convince your leadership team that an immediate increase in wages is necessary. For the time being, it will be best to stress patience with your employees in order for the company to evaluate the net impact of the HST on the employee’s current standard of living.

   

  Other Resources:

  Questions & Answers - HST - CGA Ontario

  Article - HST Won’t Hurt Much

   

   

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• 25May

  Are your sales people accountable?

  Business Please leave a Comment

  There are a number of areas you can measure your sales people by. But one big measure is accountability. Do your sales people have a high level of accountability, to go along with a sense of responsibility?

   

  Are they out in the field doing what you both know are their responsibilities as sales professionals?  Do you have to chase them down for their activities? Do you have to continually prod and poke them to do what they are getting paid to do?

   

  If you cannot think of a right answer to these questions, it is probably time to have a discussion with them. Also, keep in mind; if you care more for their success and careers than they do, then it may be time for them to find a different company that will fire up their passion about what they are doing. 

   

  In the end, little matters for the success of a sales rep except closing deals that make sense for both you and the client. But on the way you still need to measure what is happening in their career. And I would measure them to the level of accountability they claimed when you interviewed them and ultimately hired them on.

   

  If they don’t measure up, you need to ask them the hard questions and make a decision on their future with your company.

   

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• 17May

  Do you have travel insurance?

  Benefits Please leave a Comment

  It’s almost summer, the most frequent time for traveling and vacations. Many Canadians are considering sunny places or exotic countries as the best place for their destination. But as you’re deciding on the perfect destination you should also be checking if you are covered for any unforeseen incidents while traveling.

   

  Do you have basic insurance to cover a medical emergency or even the loss of baggage?

   

  Basic travel insurance can be purchased almost anywhere.  Most financial institutions and travel agencies offer this coverage. It is designed to protect you for trip cancellation and/or the loss of your luggage.

   

  With the rewards of travel come possible unexpected medical challenges. The good news is that most group benefit plans offered through employment cover you for out of country medical emergencies. In conjunction with your provincial healthcare plan these Out of Country and Travel Assistance plans offer the protection you need by providing you with:

   

  ·         worldwide assistance

  ·         assistance communications network

  ·         medical advisors

  ·         assistance for unattended children  

  ·         transportation reimbursement

  ·         medical evacuation

  ·         dependant medical assistance and much more

   

  This offers peace of mind so you may enjoy your travels.

   

  Have you already booked your next destination? Check your wallet for your Travel Assistance card; if you don’t have one or have misplaced it hurry up and contact your benefits administrator for a new one.

   

  Have a nice trip!

   

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• 07May

  Do you have the right sales person?

  Business Please leave a Comment

  Your interviews are over and you have made the decision to bring a new sales person on board your team. There is a lot of excitement and energy on both sides. You think you have a real go-getter and someone who is going to knock the socks off everyone. They are excited to show you their ability to succeed.

   

  You walk them around the building, introducing your “new star” to everyone, beaming with pride on your new addition. They show a nervous energy that comes with a new position and assurance that they can succeed.

   

  They go through the training program you have in place, wowing their new colleagues with excitement, confidence, and saying the right things. This is “the one”, the Neo of your sales Matrix, going to whisk your organization to a new level of the Promised Land.

   

  Then you set them loose and …reality hits. The activity starts strong, but, after a few weeks, it begins to wane. The swagger turns into a shuffle. The phone calls, appointments, proposals, etc. all start to slow down. Now you both start to wonder where it all went wrong.

   

  They start second guessing themselves and their career path. “Did I take the wrong job?” “Am I cut out for this?”

   

  You are thinking the same. “Did I make the wrong choice?” “Maybe the other candidate was better.”

   

  So how do you know?

   

  The answer is simple. You don’t. Every sales person hits a block at some point. Whether it is two days after they have finished their training, or six months into the job when they think they should be doing better, everyone hits “the wall”. It is at this point you have to make a decision. Do we continue down this path or do we part ways and look for a new beginning.

   

  The goal of the sales manager/leader is to determine whether they will ever gain the knowledge or confidence needed to succeed. The responsibility of the manager is to provide the breeding ground for learning and the opportunity to succeed. If they are not a good fit, then save everyone the pain that will come and make the decision quickly to move on.

   

  The goal of the sales professional is to get over the hurdles they face. Every sales professional will hit a series of walls. It is up to them to get over these hurdles and learn how to succeed. Just keep going and don’t give up!

   

  Do you have the right person? Only time will tell. And only the sales person will determine for themselves whether they are the one who will succeed. If you have provided training and have a good service or product, the best sales people will find a way.

   

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• 30Apr

  Contingency Plans for when Nature Attacks!

  Human Resources 1 Comment

  The world’s airlines are feverishly working on contingency plans for travelers due to the eruption of the Eyjafjallajokull volcano in Iceland. In total, more than 60,000 flights have been cancelled as a result of the ash cloud. Meteorologists around the world cannot predict how long this eruption may last and now it seems that travelers on the Canadian East Coast may be affected as the cloud spreads.

   

  In light of this event, companies should consider creating a contingency plan for employees who may be stranded because of a natural disaster or unforeseen events. Whether you have employees who travel regularly or who work in remote locations, having an appropriate contingency plan can mitigate stress for the employee and manage costs for the company.

   

  When developing a plan for such an event there are many issues to consider:

   

  ·               Sourcing Alternative Travel Plans. Do you have a skilled travel agent who is able to source alternative travel for your employee? Many organizations will book travel through websites such as Expedia or Travelocity, but when alternative options are scarce due to sudden increased demand, will you be able to get what you need?  With their extensive contacts, a skilled travel agent may give your employee a professional advantage.

   

  ·               Designated Contact for Stranded Employees. To mitigate stress, the company should designate a contact within the company for stranded employees. The contact should be ready and able to assist the employee 24/7 and have an understanding of the resources available. For example, for international travel, the company contact should be able to provide information pertaining to Canadian Consulates in the area or other emergency services.

   

  ·               Expense Policy. There are many questions that a company must ask themselves if they expand their expense policy to include provisions for an emergency. If regular accommodation is not available, can the employee book a hotel for $500 a night or should the employee travel to another town to seek more reasonable rates? Should employees be able to expense laundry services or purchase clothes if stranded? If the employee does not have a corporate credit card, how will you get them more money if necessary? If there are unforeseen costs at home such as childcare or pet sitting, is the company willing to assist?

   

  ·               Ability to work remotely. In addition to the costs associated with stranded employees, the opportunity cost of lost production must also be considered.  Employers may want to invest in a Management Information System that is accessible remotely to negate such losses. Companies should also consider purchasing a long distance cell phone package for international travelers.

   

  ·               Travel Insurance. If you do not have global medical insurance or a global medical assistance program, such as those offered through PEO Canada, will an injured employee be able to find or pay for medical attention while abroad? If not covered appropriately by outside coverage, an employee’s Workers’ Compensation claim may produce shocking results to your premiums for years to come.

   

  There is no way to prepare for every potential disruption in an employees travel; however, appropriate contingency planning for such an event can mitigate the company costs and employee stress. If you are looking to get started on such a plan here is a link to a useful website with free resources:

   

  http://www.londonprepared.gov.uk/businesscontinuity/makingplans/

   

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• 23Apr

  Mortgages: Changing the Rules

  Personal Advice Please leave a Comment

  The new rules, set to take effect on April 19, 2010, aren’t going to be as intrusive as many experts previously predicted, but they will work to prevent Canadians from overextending themselves.

   

  While Flaherty stands by the belief that a housing collapse is not yet imminent in Canada, he does admit that the country’s hot housing markets needed to be treated proactively. With these new rules in place, he believes Canadians will be better prepared for an influx in interest rates, able to foster equity growth in their homes, and opt to stay away from “reckless real estate speculation that has been known to drive housing prices to unsustainable levels”.

   

  Essentially, there will be three major changes to how Canadians borrow money:

   

  1.       All borrowers will be required to meet the standards for a five-year, fixed rate mortgage even if they choose a mortgage with a lower interest rate and a lower term.

   

  The Bank of Canada posted the 5 year rate at 5.85%. I guess this just puts us all on a level playing field.

   

  2.       Homeowners who opt to refinance their home will only be able to withdraw 90% of the value of their home, which is down from 95%.

   

  I think there has been some confusion about this new rule in particular. I was in a line up at the grocery store when I overheard a gentleman stating that he would now have to put 10% down on a property he was interested in purchasing. Bottom line: you can only borrow 90% of the value of your home and you need to save 5% for a down payment. I guess in a roundabout way, this could have been misconstrued as a change with respect to the minimum down payment on a property.

   

  3.       Investors who require mortgage default insurance (CMHC or Genworth) to purchase non-owner-occupied properties, will now require a minimum down payment of 20%.

   

  If you have your name on title for one property, a second property would automatically be deemed a “non-owner occupied unit.” The minimum down payment for non-owner occupied units has risen to 20%. This rule was instituted to prevent investors from over-extending themselves. You can no longer run around and purchase properties with 5% or 10% down. Developers have also started to ask for 20% instead of 15% or 10% down as they need to collect heftier down payments from buyers so the banks will finance their projects. It’s tougher for everybody to get financing these days, developers included!

   

  For the most part, it seems people are happy with the new mortgage rules being implemented by the Federal Government. These new rules primarily give the impression of protecting homeowners, without really impacting the average homeowner at all.

   

  But, given the diversity of the Canadian real estate market, it would be impossible to create a one-size fits all answer to a potential housing bubble problem. 

   

   

  Tanya Miedema, Mortgage Agent, Axiom Mortgage Solutions (formerly Unisource Mortgage)

  Email: Tanya.m@unisourcemortgage.ca   Website: http://www.tanya.unisourcemortgage.ca

   

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• 23Apr

  THE CRA WARNS CANADIANS OF MAIL SCAM

  Payroll Please leave a Comment

  The Canada Revenue Agency (CRA) is advising Canadians to be aware of fraudulent communications that claim to be from the CRA. Taxpayers are being asked by telephone, mail, or email for personal information such as their SIN, banking information and passport numbers.

   

  The communications claim that this personal information is needed so that the taxpayer can receive a refund or benefit payment. Another common scam refers the person to a website resembling the CRA’s where the person is asked to verify their identity by entering personal information. Taxpayers should not respond to such fraudulent communications.

   

  Employees should be advised of the following:

  ·         The CRA will not request personal information of any kind from a taxpayer by email.

  ·         The CRA will not divulge taxpayer information to another person unless formal authorization is provided by the taxpayer.

  ·         The CRA will not leave any personal information on an answering machine.

   

  When in doubt, taxpayers should ask themselves the following:

  ·         Am I expecting additional money from the CRA?

  ·         Does this sound too good to be true?

  ·         Is the requester asking for information I would not include with my tax return?

  ·         Is the requester asking for information I know the CRA already has on file for me?

  ·         How did the requester get my email address?

  ·         Am I confident I know who is asking for the information?

   

  As per fraudulent telephone calls, a telecommunications provider has recently been leaving messages for individuals and businesses to call the CRA at a 1-800 or 1-866 number. On dialing the number, callers are then asked to call another number at a cost to them. These telephone messages are not from the CRA and should be ignored. Taxpayers may verify the authenticity of a CRA telephone number by calling 1-800-O-Canada (622-6232).

   

  Examples of fraudulent letters, emails and online refund forms can be found on the CRA’s website: www.cra-arc.gc.ca/ntcs/bwr-eng.html.

   

  Article taken from the Canada Revenue Agency web site (http://www.cra-arc.gc.ca/ntcs/bwr-eng.html)

   

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• 08Apr

  A mentally healthy workplace is essential…..even in a recession

  Health and Wellness Please leave a Comment

  I believe that in order for employees to excel and be successful in their job or career their workplace needs to be mentally healthy. It is tough to be motivated when your work environment is mentally toxic. Especially during these tough economic times, a healthy workplace is essential and benefits both the company and its employees. However, many organizations during a recession are too busy thinking about cost reductions, staff layoffs, and salary and benefit cuts to worry about implementing a physiologically healthy workplace program. A mentally healthy work environment can increase productivity, performance and work quality. There was an interesting article in the Calgary Herald about the importance of having a mentally healthy workplace and how simple it is for organizations to adopt.

   

  Click on the following link to read more:

   

  http://www.calgaryherald.com/health/Mentally+healthy+workplace+vital+even+recession/2678401/story.html

   

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• 05Apr

  Recession changes employee attitudes on careers

  Business, Human Resources Please leave a Comment

  The Benefits Canada web site posted an interesting article about the attitude change in employees after the recession towards their career paths. After a Global Workforce Study involving interviews with 20,000 employees in 22 markets around the world, the “job for life” employment model is showing signs of becoming an increasingly popular trend. The study found that approximately 80% of employees polled had a desire to ‘go steady’ for the long-term, while 43% want to work for one company during their entire career. There seems to have been a shift during the ‘Great Recession’ from the ‘free agent’ employment model into a more long-term outlook for stability and career development.

   

  To read more on this article please go to the following link:

   

  http://www.benefitscanada.com/pension/governance/article.jsp?content=20100316_134534_4636

   

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• 25Mar

  Thoughts about Leadership

  Human Resources Please leave a Comment

  Most individuals are not natural born leaders. Most have to work at acquiring and fine tuning their leadership skills. Often times when new managers/team leads are brought into a leadership position, they try to do everything in order to prove why they belong in that position, when instead they should be surrounding themselves with good people who specialize in specific areas. A leader’s role should be to provide direction and coordinate the expertise of the teammates allowing the team to function effectively. It is no different than in sports. The best hockey, soccer or baseball player is not usually going to be the best coach, and more times then not they fail as a coach. It is the coordination between all of the skill sets that allows a team to be great. It is important for leaders not to fear that their team members are more than likely going to be better than they are in specific areas. For example, a sales representative has the potential to make more than their manager as their pay is based on commission. As a leader, you want your sales representatives to surpass your sales abilities.

   

  The attached link is a very interesting article written by Zach Miller and it discusses “The 9 Major Causes of Failure in Leadership.” I think many of the causes for failure mentioned in the article are done by various leaders without them even knowing it.

   

  http://www.hrng.ca/sites/hrng.ca/files/The_9_Major_Causes_of_Failure_In_Leadership.pdf

   

   

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