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.