Canadian Payroll Association 2nd submission to Ontario Workforce Recovery Advisory Committee

Dear Minister McNaughton, The Canadian Payroll Association (“Association”) thanks you for the invitation to provide input and perspectives on the future of work in Ontario to help shape recommendations by the Ontario Workforce Recovery Advisory Committee (OWRAC). Recently, the Association released a series of three reports as part of its Payroll in Focus research series. The second the of these reports, The Cost of Employer Compliance and Public Policy Implications, authored by PricewaterhouseCoopers (PwC) Canada and commissioned by the Association, quantifies the costs borne by employers related to payroll compliance and explores tangible ways that government can work to reduce the costs and complexity burdening Canadian employers. The report highlights that Canada’s current web of payroll requirements is costly and complex, creating repercussions for the economy, labour market, and Canadian businesses. That’s why the Canadian Payroll Association continues to advocate for sensible solutions and policies to reduce red tape and the compliance burden borne by employers. We are committed to helping you assist businesses in their recovery by lowering costs for employers, and reducing administrative complexity and redundancy. The Canadian Payroll Association and its membership was pleased that the 2019 Ontario budget contained the following commitment: “The government is committed to ensuring the more effective and efficient administration of payroll legislation, with a view towards reducing paperwork and red tape burden on Ontario businesses. To achieve this, the government is exploring working with key partners, such as the Canadian Payroll Association, to establish the Ontario Payroll Burden Reduction Advisory Council. This approach aligns with steps already taken in other Canadian jurisdictions.” Since this announcement, we have worked hard to identify and solicit subject matter experts and stakeholders who would be valuable members of the council. Both the Federal and Quebec governments have implemented similar councils which do important work to relieve employers of unnecessary paperwork and red tape burden. A council that includes industry expert stakeholders and officials from all relevant ministries like the Ministry of Labour, Ministry of Finance, and staff of the Associate Minister of Small Business and Red Tape Reduction could go a long way towards modernizing the regulatory environment facing employers. [2] The relevance of this commitment is greater than ever, as the pandemic has reinforced the need for us to look at the future of payroll. In fact, the Association is once again working with PwC in conducting further research on the new reality, including that of remote working. A recent survey of our members has revealed that of those employers who have had their staff newly working from home due to the pandemic, only 30% will revert back to having all employees work in-office exclusively. With 70% of our surveyed members stating that, at a minimum, partial or flexible teleworking will become a longer term or permanent arrangement, it is imperative for Ontario, and Canada as a whole, to identify, analyze, and make necessary adjustments in order to eliminate payroll administration complexities, and make Ontario and Canada an attractive place to establish new business and maintain a competitive advantage. The Canadian Payroll Association strongly encourages you to support this commitment of establishing the Ontario Payroll Burden Reduction Advisory Council with the Association as primary and key stakeholder, so that red tape reduction remains an ongoing priority for the government. Please do not hesitate to contact me or our Director of Government and Legislative Affairs, Rachel Dobrin-De Grâce at 416.487.3380 x 126 or rachel.degrace@payroll.ca.