Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Whether the term "termination" can be defined for purposes of both federal and provincial legislation, at least legislation affecting the Payroll Association.
Position TAKEN:
Need further identification of the problem by the Association.
Reasons FOR POSITION TAKEN:
Do not know the extent of the problem.
CANADIAN PAYROLL ASSOCIATION
NATIONAL CONFERENCE
Termination Forum
Question 25
The term "termination" has different meanings for the federal RCCET and the provincial Employment Standards Boards across the country. For example, an employee could be terminated for the purposes of employment standards, i.e., his outstanding vacation pay, severance pay and notice pay has already been satisfied, but there could still be an employer/employee relationship as far as Revenue Canada Taxation is concerned, for example, for purposes of pension accrual and long term disability.
These different sets of rules make compliance a confusing, time consuming and sometimes impossible feat.
Is there any possibility that the two levels of government would consider forming a joint review of the areas of difficulty, with the help of the Canadian Payroll Association, with a view to adopting a unified definition of "termination" for both federal and provincial purposes.
Answer 25
Although a joint review may be a valid approach to finding a solution, a preliminary study of the problem would assist both governments.
If the Association wishes to pursue this matter, the Department recommends that the Association prepare a review of the legislation administered by the Department (Income Tax Act, the source deduction provisions of the Canada Pension Plan and Unemployment Insurance Act) identifying the specific provisions where a determination that termination has occurred is in issue and recommending specific amendments which would address the Association's concerns. A similar submission concerning the provincial legislation would serve to focus the Association's efforts in this regard.
An initial assessment of this nature would be a prerequisite to any joint review.
Prepared by: P. Spice
May 5, 1994
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