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Income Tax Act

Allocation of settlement funds in wrongful dismissal – between taxable and tax exempt

Damages for wrongful dismissal are intended primarily to compensate the dismissed employee for income lost due to the dismissal. As such, the amount of such compensation, whether as a result of a settlement or a judgment by the court is, prima facie, taxable.

 

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Most-viewed articles this week on HRinfodesk

The three most viewed articles in this week’s HRinfodesk newsletter deal with the new EI benefit for parents with critically ill children, constructive dismissal and benefits for workers who work past 65 years of age…

 

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Slaw: Update to Pooled Registered Pension Plan Bill

On June 29, 2012, legislation for Pooled Registered Pension Plans (PRPPs) has been given Royal Assent.

 

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Tax and employment insurance issues when settling dismissal claims

Employment lawyers are generally quite adept at negotiating and resolving disputes arising out of the termination of an individual’s employment. We have all seen the statistics that only a miniscule number of dismissals result in a full trial and we know that in almost every case, it is better for the parties to reach a resolution than to proceed with litigation. That said, many traps exist in the settlement of a wrongful dismissal claim.

 

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Supplemental Unemployment Benefit (top-up) plan reporting

We set up a Supplemental Unemployment Benefit (SUB) plan in the last year (also known as a top-up plan). How do I report the payments our employees received under the plan in 2011? Before answering this question, let’s clarify a couple of terms…

 

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