Chapter 16 - Payroll Accounting

Article: B.C. minimum wage stagnates - http://www.merrittnews.net/article/20100422/MERRITT0101/100429986/-1/MERRITT01/bc-minimum-wage-stagnates

Summary: Since 2001, BC's minimum wage has remained at $8 and has steadily dropped from being the highest to the lowest minimum wage in the country. Also, students who start work must be paid $6 per hour for their first 500 hours of work. This allows employers to lay off students once they reach 500 hours of work to avoid paying them minimum wage. B.C's Federation of Labour President Jim Sinclair says that this is exploitation that is being allowed by the government. Despite the fact that BC's Minister of Labour: Murrey Coell says that the government has done a great deal to inprove the life of low income earners, some are still struggling to earn a living wage.

Connections: Chapter 15 talks about payroll accounting. Payroll accounting involves taking a person's gross pay, and taking deductions. Each working individual has numerous deductions to account for. These deductions include income tax, CPP, RPP, health insurance, and employment insurance. All these must be paid regardless of the fact that someone is still making $6 per hour.

Reflections: I believe that the minimum wage in BC is way too low. $8 per hour is too little to pay for the high cost of living in BC. I find it remarkable that BC and Vancouver have the highest living costs in the country, yet have the lowest minimum wage. I also thin it's unfair that the training wage is only $6 per hour. Some people would have to work for 3 months before they even reach the minimum wage of $8! Take the deductions off that, and almost nothing is left. RI believe that raising the minimum wage to $10, and eliminating the training wage will greatly reduce the poverty rate in Canada.

Chapter 15: Analyzing Financial Statements

Article: Corus profits drop 50% in Q2 http://www.vancouversun.com/business/fp/Corus+profit+drops/2905229/story.html

Summary: Corus, a medai company reported that their profits dropped 50% in Q2 of 2010. The company earned $14.6 million in Q2 of 2010 compared to $29 million the same time last year. Adding to that is the fact that losses to the corporate segment of the company have almost doubled in the same time period. The $14.3 million loss was blamed on debt refinancing. Consolidated revenues and segment profits however, when up during the same period. The company's CEO: John Cassady said that the advertising recession was behind them and that the advertising problems facing the industry was over.

Connections: Chapter 15 talks about outsiders and insiders. Outsiders are interested in the revenues and profits of a company to analyze how they are performing. Insiders are concerned in making sure the company does it's best since their jobs usually depend on it. They analyze more information than outsiders and they do so more thoroughly. Insiders are the ones that must work hard to make sure Corus gets back up to previous profit levels.

Reflections: I am not surprised that their profits dropped as compared to the previous year. Companies were more reluctant to spend much money on advertising since they were amidst a recession. I also agree with CEO John Cassady in thatt the problems facing the industry is over. Now that we are out of a recession, people are willing to spend more, which in turn will allow companies to put more money back into avertising.