Human Resources Legislative Update

Federal 2011 Budget Introduced

Human Resources Legislative Update

Federal 2011 Budget Introduced

Date: March 23, 2011

On March 22, 2011, the federal government introduced its 2011 Budget “A Low-Tax Plan for Jobs and Growth”.  Highlights in the Budget of interest to employers include:

  • elimination of the mandatory retirement age for federally regulated employees
  • volunteer firefighters tax credit
  • anti-avoidance rules for RRSPs
  • increase in EI premiums limited to 5 cents in 2011 and 10 cents for subsequent years
  • restriction of  “loopholes” relating to tax deferrals under individual pension plans
  • extension of work-sharing agreements by up to 16 weeks
  • enhancement of the Wage Earner Protection Program
  • temporary Hiring Credit for Small Business
  • enhancement of the Guaranteed Income Supplement
  • extension of the Targeted Initiative for Older Workers
  • review of existing rules for Employee Profit Sharing Plans
  • expansion of Labour Canada’s Preventive Mediation Program.

Our FTR Now contains more detailed information on the Budget. (Note: it is unknown at this point whether the Budget will pass.)

  • pholes” relating to tax deferrals under individual pension plans