Chapter 16 Payroll Accounting

http://columbiavalleynews.com/2010/04/10/bc-has-lowest-minimum-wage-highest-poverty-rate/

Summary

On March 31, 2010, Ontario increased their minimum wage to $10.25 an hour and on April 1, 2010, Nova Scotia will raise their minimum wage to $9.20 an hour. However, British Columbia seems to have no intention in increasing the minimum wage. British Columbia had not increased their minimum since 2001. Jim Sinclair said, “It’s time for the MLA and the Liberal caucus to accept their responsibility and speak on the behalf of their constituents and demand that the minimum wage to be increased to $10 an hour.” On the other hand, the government did mention that the economy is slow, 8% are unemployed, and they cannot afford it, when the economy is booming. The provincial government also said that other places have increased the minimum wage as a part of an anti-poverty strategy. BC has one of the highest poverty rates in the country…

Connection

Payroll process is very complex and the person in charge of payroll has a great deal of responsibility. For example, all the commission, minimum wage, government rules, and regulations must be kept in mind and be updated from time to time. When there are changes to rules ,such as minimum wage, they must be the first to know. When calculating a workers wage the paymaster must add commission and overtime and deduct taxes, CPP, etc. they also have to remember deduct the an amount if a worker has been late to work. The person that is in charge must update himself or herself with the new information, especially when the minimum has rose. Working at a different province means different rates and rules. Therefore, the paymaster does have to be organized and know what they are doing.

Reflection

British Columbia’s minimum wage maybe $8 an hour but for those who don’t have work experience or it is their first job the employer has the ability to pay them $6 an hour as training wages. Only after working for 500 hours in total then an employer must pay the employee a minimum of $8 an hour. Those who have a full time job and get paid minimum wage can hardly make a living with so little causing many of them to be over exhausted. They also have no choice but to do the job because they have no choice and are unable to keep up with living expenses. Rent, food, hydro may take up more than ¾ their wage. How much is left to put into a RRSP? As a student, I have always wanted to work part time but I feel that it is nonsense to have to work for 500 hours to obtain that $8 an hour. Does it actually take 500 hours to do well in one job? In my opinion, it is unfair that British Columbia has a training wage then minimum wage that is lower than the rest of Canada. British Columbia’s economy is certainly not the worse out of all the other provinces. If other provinces are increasing their minimum wage as an anti-poverty strategy, doesn’t it make sense that BC should do the same since BC has one of the lower poverty rates in the country.