• July 27, 2023 at 15:55

    We had our first salary deferral this pay and was wondering how many organizations provide access to “Defined” or “Un-defined” programs. Municipal Pension Plan when I contacted them had not had a “case” so I am interested to see how many other organizations do this. It is a very administrative process so I can see why not too many places to provide the option.

  • July 28, 2023 at 00:44

    I worked for a company that decided to have a “summer workday” program (work 4 days in the summer), so employees got every Friday off all summer and then they were to work extra time each week in the September to December period to offset the hours they did not work in the summer. Sounded good on paper but it was a nightmare for HR and Payroll staff. This was in a company with over 1200 employees! If an employee left the company or went on Maternity or sick leave with EI, I had to recalculate every summer pay cheque, adjusting CPP, EI and taxes and then adjust their final pay, record of employment etc. I have not had specific experience with “salary deferrals” but the key is to ensure the rules of the program are clear up-front so everyone knows the consequences of choosing to defer salary.

    • July 28, 2023 at 11:04

      eeek 1200 people!!! That would be a huge administration nightmare! Especially when the funds have to be held in a separate trust account and they earn the interest on that money!!

  • August 17, 2023 at 13:38

    At my previous Employer, there was a prescribed deferred salary program. The terms and conditions had to comply with the requirements of the Income Tax Act and Income Tax Regulations. A percentage of an employee’s annual gross salary could be deferred and there was a minimum and maximum leave period. The amount of salary deferred was not included in their income in the year it was earned, but rather when it was paid on their leave of absence.

  • August 17, 2023 at 14:54

    This is a significant liability and requires a lot of admin work. There are chances of errors as well. We don’t provide this option in our company.