REGION OF WATERLOO
WAGE ENHANCEMENT
FUNDING GUIDELINES
REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
REGION OF WATERLOO
CHILD CARE FUNDING GUIDELINES
FOR WAGE ENHANCEMENT FUNDING
Region of Waterloo’s Wage Enhancement Policy Goals…………………………..….page 3
Wage Enhancements Defined…………………………………………………………..….page 3
Purpose Statement, History and Legislative References…………………………..…page 3
Wage Subsidy Funding Components and Calculations …………………….……..…page 4
Who Is Eligible………………………………………………………………………………...page 5
Full Time Equivalent Staffing / Casual Supply Staff .……………………………...…..page 5
Allowable Use Of Wage Enhancement and Communication Requirements………page 6
A Few Notes about Minimum Wage…………………………………………..…………..page 7
Wage Enhancement Forms…………………………………………………………………page 8
Audited Statement and Special Purpose Report ………………………………………page 9
Wage Enhancement Update Form…………………………………………………..........page13
Wage Enhancement Update Form Guidelines……………………………………..…...page14
Wage Enhancement Update Form Examples and Definitions…………………........page16
Wage Enhancement Calculation Form…………………………………………………..page17
Wage Enhancement ($9,534. Calculation)………………………………………………page 18
Wage Enhancement Utilization Declaration…………………………………………….page19
Wage Enhancement Utilization Declaration Guidelines………………………………page20
Wage Enhancement Utilization Declaration Definitions and Examples…………..page 22
Special Purpose Report Sample……………………………………………………........page 23
Expenditures and Revenues Form…………………………………………………........page 24
Administering Wage Enhancement Funding Sample………………………………...page 25
Janitors and Bookkeepers Declaration Form………………………………………….page 26
Compendium of amendments and edits…………………………………………..........page27
Guidelines Completed January 1, 2010
Acknowledgements
The Region of Waterloo would like to thank the Regions of Halton, Peel, Durham,
Wellington, York, Niagara, City of Kingston, The District of Muskoka, City of Windsor,
Hastings County, United Counties of Leads and Grenville, City of Brantford, City of
Ottawa, County of Simcoe, and City of Toronto for sharing their administrative models
and policies which we used liberally in our final product.
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
REGION OF WATERLOO’S WAGE ENHANCEMENT POLICY GOALS:
The Region of Waterloo’s overarching policy goal of Wage Enhancement funding is to support
staffing stability within the child care sector through salaries that will attract and retain staff.
Children’s Services Division plans and manages Wage Enhancement funding within the
parameters of Provincial legislation, regulations, standards and policies established by the
province and the municipality. The Children’s Services Division, with the approval of Regional
Council has established a process for managing Wage Enhancement funding. Children’s
Services Division plans for and manages Wage Enhancement funding in a manner that:
•
•
•
•
is consistent with provincial guidelines and policy directives;
is applied equally to both non-profit and for-profit programs;
is applied to increases in service levels when funding is available; and
anticipates funding requirements through the ongoing maintenance of a wage
enhancement pressure list for new and or expanded programs.
The Region supports research that shows enhanced salaries attract qualified staff, and
increases staff stability. This is why the Region directs approximately 25% of its overall child
care budget to Wage Enhancements.
DEFINITION OF WAGE ENHANCEMENTS:
Wage Enhancements are comprised of:
• Wage Subsidy,
• Wage Improvement; and
• Pay Equity1 funding.
PURPOSE STATEMENT, HISTORY AND LEGISLATIVE REFERENCES:
The purpose of Wage Enhancement funding is to improve the salaries of eligible child care staff
employed in licensed child care programs. Service Providers must provide minimum wage in
accordance with the guidelines set by the Ministry of Labour and use Wage Enhancements to
increase minimum wage requirements. In summary, Wage Enhancements cannot be used to
meet minimum wage requirements and the Service Provider cannot reduce base salaries when
new or increased Wage Enhancement funds are received.
HISTORY:
The Wage Subsidy program was introduced by the Provincial Government in 1987 to improve
the salaries and benefits of child care staff and to make licensed child care more affordable for
all parents. Wage Subsidy is comprised of three separate grants which are the Direct Operating
Grant, the Wage Enhancement Grant and the Provider Enhancement Grant. Each grant is
defined below:
The Direct Operating Grant portion of Wage Subsidy was introduced in 1987 to enable licensed
child care centres and home child care operators to increase salaries and benefits of staff and
maintain affordability of services.
The Wage Enhancement Grant Portion of Wage Subsidy was introduced in 1991 to assist child
care centres and special needs resource agencies which were unable to commence pay equity
adjustments under the original Pay Equity Act and to increase compensation to eligible
employees.
The Provider Enhancement Grant portion of Wage Subsidy was introduced in 1992 and is used
exclusively for the provision of additional compensation to home child care providers.
1
As per Provincial Guidelines pay equity is only provided to non profit child care programs who qualified at the time
of the 1999 Memorandum of Understanding. Agencies receiving this funding must use it to meet their agreed upon
pay equity targets.
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
HISTORY CONTINUED:
The amount of Wage Subsidy a service provider receives is calculated using a provincial
formula that incorporates operating capacity, age groups, hours of operation, months of
operation and the number of full-time equivalent (FTE) staff required to meet Day Nurseries Act
(DNA) staffing ratios. Until 2005, commercial operators were only eligible to receive $3,230.00
per FTE as per Provincial Policy. With the commencement of Best Start Funding in 2005, and at
the discretion of the Region of Waterloo, commercial operators were provided with the same
maximum funding of $9,534.00 per FTE as non profit child care operators were eligible to
receive.
Wage Improvement Funding was introduced in 2006 as One Time Best Start Funding to assist
with the salaries of child care staff working directly with children. Owners, Administrators,
Cooks and Janitors are not eligible for Wage Improvement funding as per Provincial direction in
the Ontario Child Care Service Management Guidelines. Provincial Guidelines are posted on
the Region’s Website under Children’s Services www.region.waterloo.on.ca/socialservices/
WAGE SUBSIDY FUNDING COMPONENTS AND CALCULATIONS:
The provincial terminology Direct Operating Grant, commonly referred to as the DOG, is one of
the three funding components used to calculate the amount of funding an operator of a child
care centre will receive. A provincial funding formula is used to assign points based on the
following:
•
•
•
operating capacity for each age group of children served by the operator;
hours of operation; and
the number of months the program operates annually.
In short, the more points the operator has the more DOG funding they will receive. Programs
that serve younger children and operate on a full time basis 12 months per year receive a larger
grant than operators serving older children and operating fewer hours per year. The DOG
funding is added to the next funding component which is the Wage Enhancement Grant.
The Wage Enhancement Grant, commonly referred to as the WEG, is the second component
used to calculate the amount of funding an operator in a centre based program or a Special
Needs Resourcing program will receive.2 The WEG formula for centres and SNR agencies is
different as illustrated below. The WEG is based on the number of eligible full time equivalent
(FTE) positions. The provincial formula for calculating WEG funding is:
Formula for: Centre based care: # of FTE positions x $2,570.00
Formula for: SNR agency:
# of FTE positions x $2,532.00
The Provider Enhancement Grant, commonly referred to as the PEG, is the third funding
component and exclusively used to calculate the amount of funding a Home Child Care (HCC)
operator will receive. HCC Operators are required to provide their child care providers with an
equitable portion of the PEG. Wage subsidy for private-home child care providers reflects
program size which is defined as the average daily number of children enrolled on a daily basis
and the number of months that the program operates throughout the year. Average daily
enrollment is defined as the average number of children enrolled in the private-home day care
per day. This is determined by dividing the total number of days of child care provided by the
total days of operation. Provincial points are assigned in the formula as follows:
Formula: Average Daily Enrollment x 17.95 x Number of Months Open x $4.836
2
The WEG is used only for centre based child care programs and special needs resource (SNR) programs. The
PEG is used for HCC.
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WHO IS ELIGIBLE:
The Provincial Ministry of Children and Youth Services set the eligibility criteria for who is eligible
to receive funding. It is important to note that the eligibility criterion for Wage Subsidy is
different than the eligibility criteria for Wage Improvement.
All permanent full time and part time child care staff are eligible for wage subsidy. If a janitor,
cook or bookkeeper are employees of the child care centre and reported on the Federal T4
summary they are eligible for wage subsidy. If staff are hired through a contract agency3 for
such services as cleaning, lawn and property maintenance, bookkeeping, audit functions or food
catering they are not considered permanent employees and therefore not eligible for wage
subsidy and not to be added to the Wage Enhancement Update Form.
FULL TIME EQUIVALENT STAFFING:
The number of Full time equivalent (FTE) staff required to meet the child to staff ratios as set out
under the Day Nursery Act are used, in part to determine funding levels. The Provincial Ontario
Child Care Service Management Guidelines, page 7 lists the following permanent staff positions
as eligible to receive Wage Subsidy and Wage Improvement:
Positions eligible for Wage Subsidy Include:
•
•
•
•
•
•
•
•
•
•
Trained and untrained ECE’s;
Director approved ECE’s;
Supervisors, Assistant Supervisors:
Resource Teachers (Resource Consultants and Enhanced staff);
Private Home Child Care Home Visitors;
Directors, and Owners:
Clerical/Administrative Staff;
Cooks;
Housekeeping and Janitorial Staff (employed by the operator); and
Bus Drivers (if directly employed by operator).
Positions eligible for Wage Improvement Include:
•
•
•
•
•
Trained and untrained ECE’s;
Director approved ECE’s;
Supervisors and Assistant Supervisors:
Resource Teachers (Resource Consultants and Enhanced staff); and
Private Home Child Care Home visitors.
As per the Provincial Ontario Child Care Service Management Guidelines4, permanent full & part
time staff that are part of a program’s regular staffing complement are eligible to receive wage
subsidy. Casual supply staff are not eligible to receive wage subsidy and wage improvement
funding. As a result, this group of staff would receive a salary from the employer which would
not be enhanced with wage subsidy or wage improvement funding. Once the casual supply staff
is added to a permanent full or part time position they would become eligible for Wage
Enhancements.
The Region of Waterloo reserves the right to determine the number of staff eligible to receive
Wage Subsidy and Wage Improvement funding in excess of the staffing ratios set out in the
DNA.
3
This includes but is not limited to contractual agreements with cleaning services, janitorial agencies, accountants,
bookkeepers, consultants, bussing companies or taxi services.
4
Page 7 section 2.1 of the Ontario Child Care Service Management Guidelines
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
ALLOWABLE USE OF WAGE ENHANCEMENT FUNDING:
As per Provincial and Municipal Guidelines, the Service Provider is allowed to use a portion of
Wage Enhancement funding5 to offset the increased mandatory benefit costs associated with
this funding. There are four allowable Mandatory Benefits that can be deducted from Wage
Enhancement funding. They are limited to the employer’s share of:
1. Canada Pension Plan Deductions;
2. Workplace Safety Insurance Board Premiums; (or an alternate carrier)6
3. Employment Insurance Premiums and
4. Employer Health Tax (if over $400,000.00 in wages)
No other costs such as vacation pay, training expenses etc. can be deducted from Wage
Enhancement Funding. To clarify, vacation pay is not payable on the amount of the wage
enhancement grant. The service provider is required to list the Wage Enhancement grant
amount separately in their payroll ledger and on each pay stub. Therefore, when the service
provider does pay vacation pay it is easy for them to calculate the vacation pay amount payable.
The vacation pay amount payable is a percentage of regular earnings only (no vacation pay is
paid on the wage enhancement grant amount). If the service provider is keeping the wage
enhancement grant separate, as is required, this is an easy process.
All remaining funds must go to eligible staff on each regular pay cheque. Of interest, not all
Service Providers reduce the amount of Wage Enhancement Funding to cover increased costs
thereby enabling staff to receive the full amount of Wage Enhancement funding.
As per Provincial and Municipal Guidelines, the Service Provider will ensure that each eligible
employee receives an equitable and reasonable portion of Wage Enhancement funding.
Service Providers will not use Wage Enhancement funds to provide non-mandatory benefits,
pay for performance bonuses, or as a way to recognize tenure. Although incentives and nonmandatory benefits are recognized as valuable ways to reinforce, attract and retain staff, Service
Providers are encouraged to use funds generated through per diem rates for salary
enhancements, incentives and non-mandatory benefits.
When a wage subsidy funding pressure process is in place, all requests for wage subsidy
funding for expansion and new centres will be placed on a pressure list. Operators cannot
decrease current staff’s wage subsidy funding levels to accommodate staff expansion nor can
operators transfer funds from one program to another program.
Communication Requirements:
The Service Provider will ensure that each employee is made aware of wage subsidy funding
and the amount they receive annually as a salary enhancement. Ideally this information will
appear on each pay stub. If the Service Provider is not able to implement this operationally, a
letter must be sent to the Region outlining how the intent of this requirement will be met.
As per Provincial Guidelines, distribution of Wage Subsidy will not exceed $9,534.00 per FTE
staff position. This amount is pro-rated for part time staff. For example, an employee working
half the hours of a full time employee is a 0.5 FTE and their portion of Wage Subsidy would not
exceed $4,767.00. An employee working three months of the year on a full time basis would
receive 25% of $9,534.00 which is $2,383.50 and the staff person replacing that employee and
working the remaining 9 months of the year would receive the balance (75%) of the funds. You
will receive a letter from the Region if the information provided in the Wage Subsidy Utilization
Declaration indicates that you have provided funding beyond the maximum.
Staff Are Sick or on Vacation:
If staff are sick or on vacation the wage subsidy funding the Service Provider received is to be
provided to the eligible employee and not deducted from their pay and used for other purposes.
For example, the Service Provider completes the Wage Enhancement Update Form indicating
that they have 5 FTE staff. Each of the staff is reported to work 52 weeks of the year for 37
hours per week. The Region then calculates the wage enhancement entitlement and provides
funding for 5 full time staff based on the information provided by the operator. The staff would
5
Page 12 section 2.5 of the Ontario Child Care Service Management Guidelines
Alternate workplace accident insurance can be approved such as Royal Bank of Canada (RBC) Workplace
Accident Insurance as long as the alternate carrier has similar outcomes/benefits as WSIB at the same or less cost
than WSIB.
6
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
continue to receive wage subsidy during vacation and sick days even if the operator does not
provide a salary during these periods. This is different for a centre that is open only 10 months
of the year and staff are on vacation for the 2 months of the year. This operator would only
request wage subsidy for 10 months of the year or 40 weeks. These staff would still be eligible
to receive wage subsidy during sick days. Please note Wage Improvement Funding is in
addition to the Wage Subsidy funding maximum of $9,534.00.
A FEW NOTES ABOUT MINIMUM WAGE
The following information has been downloaded from the Ministry of Labour’s website at
www.labour.gov.on.ca. It is the Service Provider’s responsibility to keep informed about
changes in minimum wages.
Minimum wage is the lowest wage an employer can pay an employee. Most employees
are eligible for minimum wage, whether they are full-time, part-time, casual employees, or
paid an hourly rate, flat rate or salary.
MINIMUM WAGE RATES FOR 2009 AND 2010
Minimum Wage Rate
March 31, 2009
Current wage rate
March 31, 2010
General Minimum Wage
$9.50
per hour
$10.25
per hour
Student Minimum Wage
$8.90
per hour
$9.60
per hour
General minimum wage - This rate applies to most employees.
Student wage - This rate applies to students under the age of 18 who work 28 hours a week or
less when school is in session or work during a school break or summer holidays.
Example for calculating general minimum wage as taken from the Ministry of Labour
website:
Julia works 37.5 hours a week and is paid on a weekly basis. As of March 31st, the minimum
wage applicable to Julia is $10.25 per hour. Julia earns $384.38 per week in gross pay prior to
deductions. (37.5 hours × $10.25 per hour = $384.38) The employer remits mandatory
deductions to the appropriate source. In this example we are using 10.72% for CPP, EI, WSIB
and EHT. $384.38 less mandatory deductions of $37.21. The amount the employer remits is
deducted from Julia’s gross pay for a net pay of $347.16. (Gross Pay minus mandatory
deductions of $37.21 = $347.16 net pay)
Wage Subsidy would be provided to Julia in addition to the employers requirements to
provide minimum wage.
If Julia was a full time ECE eligible for $9,534.00 in wage subsidy she would receive $779.40 as
a monthly gross amount. If all 4 of the allowable mandatory benefits are deducted the net
monthly amount of wage subsidy would be $779.40 divided by 110.72 x 100 = $703.94 – $75.46
= net $628.48.
Julia is paid on a weekly basis therefore her pay stub will identify the following amounts:
•
Base salary net weekly pay of $314.24
•
Wage Subsidy net weekly grant of $157.12
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
FORMS:
The following Wage Enhancement forms and guidelines are used for the purposes of
determining eligibility, establishing funding levels, auditing, ensuring financial integrity in the
funding process, and ensuring compliance with Provincial and Municipal Policies and
Procedures. The forms are described in detail on the next 18 pages and can be found on the
Region’s website at www.region.waterloo.on.ca/socialservices under Children’s Services,
Funding and Administration pages:
DEFINITIONS:
1.1
Service Agreement……………………………………………………………………..page 8
1.2
Wage Enhancement Service Description…………………………………………..page 8
1.3
Wage Enhancement Update Form…………………………………………………...page 8
1.4
Provincial Wage Subsidy Calculation Form…………………………………….....page 9
1.5
Wage Enhancement Utilization Declaration………………………………………..page 9
1.6
Audited Statements and Special Purpose Report………..………….……………page 9
1.7
Federal T4 Summary Form…………………………………………………………….page 10
1.8
MCYS Licensing Program Staff Schedule………………………………………….page 10
1.9
Sample Wage Subsidy Payroll Template……………………………………………page 10
1.10
Including Janitors and Bookkeepers as Eligible for Wage Subsidy…………..page 11
1.1
SERVICE AGREEMENT:
The Service Agreement is a legal agreement which includes an outline of all funding conditions
for Service Providers 7 receiving Wage Enhancement funding. It is the responsibility of the
Service Provider to comply with the conditions set out in the Service Agreement. Failure to
comply with the conditions set out in the Agreement can result in recovery of funds, cessation of
funding and a possible audit or forensic review. The Service Agreement is sent once every 5
years with the first year of the new Service Agreement implementation commencing in 2010.
1.2
WAGE ENHANCEMENT SERVICE DESCRIPTION SCHEDULE:
The Wage Enhancement Service Description Schedule is a legal document outlining Service
Objectives, a Description of the agreed upon services to be provided, Funding Conditions,
Administration of Funds, Full Time Equivalent Staffing Positions, Approved Locations, and the
Service Provider’s percentage of wage subsidy entitlement. Service Descriptions will be sent
every five years unless there is a change to the content of the Service Description in which case
an amended Service Description will be sent.
1.3
WAGE ENHANCEMENT UPDATE FORM:
The Wage Enhancement Update Form is completed annually by the Service Provider. The
Service Provider uses this form to declare the number of Full Time Equivalent Staff, Operating
Capacity, and the number of Months the program operates. This information is used to calculate
entitlement. Service Providers are required to ensure that the maximum amount of funding per
FTE of $9,534.00 is not exceeded. The Wage Enhancement Update Form and Guidelines to
complete it are found on pages 12 to 15 of this document as well as on the Region’s website at
www.region.waterloo.on.ca/socialservices in the Children’s Services section under Funding and
Administration.
7
The terminology “Service Providers” refers to operators of child care centres, home child care programs and
special needs resourcing agencies collectively.
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
1.4
PROVINCIAL WAGE SUBSIDY CALCULATION FORM:
The information provided by the Service Provider on the Wage Enhancement Update Form is
entered by Children’s Services Administration staff on the Provincial Wage Subsidy
Calculation Form. Changes reported in FTE’s and Operating Capacity will result in a change in
funding. If the FTE’s, Operating Capacity or hours of operation decreases the amount of funding
will decrease. If there is an increase, and funding is available, the funding will increase. If,
however, funding is not available, the increase in funding will be placed on a pressure list. Once
new funding becomes available programs on the pressure list will receive additional funding. A
copy of the Provincial Wage Subsidy Calculation Form can be found on page 16 of this
document as well as on the Region’s website at www.region.waterloo.on.ca/socialservices in the
Children’s Services section under Funding and Administration.
1.5
WAGE ENHANCEMENT UTILIZATION DECLARATION:
The Service Provider completes the Wage Enhancement Utilization Declaration identifying
the base salary and benefits paid by the Service Provider8. A declaration of the amount of wage
subsidy, wage improvement and pay equity funding received and paid to eligible staff is made by
the Service Provider. By signing the form the Service Provider declares that the information
contained in the Form is true and that the funds received were used for the purpose intended.9
The form is submitted within 30 days of the end of the funding year10. This information is
reviewed to ensure Wage Enhancement funding was used for purposes intended and that the
employer met or exceeded their minimum wage obligations as set by the Ministry of Labour. In
the event of a surplus, the funds are to be returned or will be reduced from the next payment. A
surplus can occur when staffing or service levels reduce mid year or as a result of a program
closure or downsizing. The operator must inform the Region of a reduction in staff or program
closure immediately so that funding can be reduced or stopped and surplus funds returned to
the Region. The Wage Enhancement Utilization Declaration Form and Guidelines can be
found beginning on page 19 of this document or on the Region’s website at
www.region.waterloo.on.ca/socialservices in the Children’s Services section under Funding and
Administration.
AUDITED STATEMENTS AND SPECIAL PURPOSE REPORTS11
1.6
For Service Providers receiving more than $100,000 in Wage Enhancement Funding:
Service Providers receiving more than $100,000 in wage enhancement funds are required to
provide the following three pieces of financial information:
•
•
•
A Special Purpose Report completed by a Chartered Accountant as set out on page
twenty-three;
An Audited Financial Statement limited to the financial information contained on page
twenty-four, and an
Expenditures and Revenue Statement which includes a summary of the Operating
Surplus for the year and the cumulative Retained Earnings. An Operating Surplus is
the net of expenditures over revenues and Retained earnings are accumulative net
assets of the agency.
Auditors should receive a copy of this section of the guidelines to enable them to complete
the required documentation. To ensure Audits are affordable, the Audited Financial
Statement is now limited to an Expenditures and Revenue statement, a Special Purpose
Report and a Financial Statement.
For Service Providers receiving less than $100,000 in Wage Enhancement Funding:
8
As per the minimum wage standards set out by the Ministry of Labour.
The purpose of the funds is to increase staff income levels beyond the employer’s minimum wage obligations.
10
The form is sent to you in December and required to be returned on or before January 31st of the following year.
11
As set out under Section 65 (2) of the DNA
9
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
Service Providers receiving less than $100,000 in Wage Enhancement funds are required to
provide the same information as above except that it does not have to be completed by a
Chartered Accountant. The three pieces of documentation can be completed by a Financial
AUDITED STATEMENTS AND SPECIAL PURPOSE REPORTS Cont.
or administrative staff person or a volunteer with a financial background. The three documents
must be reviewed and signed off by a board member prior to submission. The three reports can
also be completed by a Board Member such as a Treasurer, Chair or Financial Board Member.
These forms can be found on the Regions website at www.region.waterloo.on.ca/socialservices
in the Children’s Services section under Funding and Administration. Whether it is an Audited
or Un-Audited Statement, the Auditor, Accountant, Treasurer or Finance Person completing the
information requirements must receive a copy of the sample Special Purpose Report, the Wage
Enhancement Update and Utilization Forms, the Service Description Schedule, Service Contract
and Budget to enable them to complete the required reports and include such tests as they
deem necessary to express an opinion on the salaries and benefits paid by the employer and an
opinion on whether Wage Enhancement funding was used for the purposes intended. Without a
signed statement that funds were used for the purposes intended the form will be returned to the
Service Provider and further funding may be delayed until the required information is received.
1.7
FEDERAL T4 SUMMARY FORM
A copy of the agency’s Federal T4 Summary is required and will be used to compare salary data
submitted on the agency’s Wage Enhancement Update Form and Utilization Declaration to
confirm FTE’s and reported salaries. For agencies that’s sole purpose is for child care the
number of staff reported on the T4 should reflect the number of staff reported on the Wage
Enhancement Update Form and Wage Enhancement Utilization Declaration. Multi-purpose
agencies must attach a letter identifying the number of staff reported on the T4 Summary for
Child Care purposes.
1.8
MCYS LICENSING PROGRAM STAFF SCHEDULE
A copy of the ministry’s Program Staff Schedule completed at the time of the most recent
licensing review is required to be submitted along with the Wage Enhancement Update Form.
This form contains the name, qualifications and shift worked along with the number of children in
attendance during the licensing visit. It will be used to confirm the number of reported FTE’s,
and Operating Capacity on the Wage Enhancement Update Form. For Home Child Care
Programs a copy of the form completed at the time of the licensing review is required to confirm
the number of providers reported. The Region will request this form at the same time we request
the Wage Enhancement Update form.
1.9
SAMPLE WAGE SUBSIDY PAYROLL TEMPLATE
On page 25 you will find a sample of how to administer wage subsidy funding in accordance with
provincial and municipal guidelines. The sample meets the requirement that wage subsidy
funding is provided on each regular pay cheque, deductions include only the mandatory
deductions of Canada Pension Plan, Workplace Safety Insurance Board, Employment Insurance
Premiums and the Employer Health Tax (if over $400,000.00 in wages). Information regarding
the EHT is available at www.rev.gov.on.ca/en/tax/eht/. It is the responsibility of the Service
Provider to be current on the allowable maximums for each mandatory deduction. The sample
is based on 2009/10 deduction percentages. There are no other deductions that can be
deducted from the wage enhancement funding. The net amount, after the allowable deductions
are taken, is provided to eligible child care staff on each regular pay period. The example shows
that each employee, based on their full time equivalency receives an equal share of the wage
subsidy funding. No employee’s salary enhancement can exceed the allowable maximum of
$9,534.00.
Please note Wage Improvement Funding is in addition to the Wage Subsidy maximum amount
of $9,534.00.
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1.10
INCLUDING JANITORS AND BOOKKEEPERS AS ELIGIBLE FOR WAGE SUBSIDY
Page 26 provides the Sample Letter agencies must complete and return to the Region when
they have declared Janitors and Bookkeepers as employees and included them in their Wage
Subsidy FTE calculation on the Wage Enhancement Update Form.
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
FORMS AND GUIDELINES SECTION:
1.
Wage Enhancement Update Form…………………………………………………....page13
2.
Wage Enhancement Update Form Guidelines……………………………………..page 14
3.
Wage Enhancement Update Form examples and definitions…………………...page16
4.
Provincial Wage Enhancement Calculation Form…………………………………page17
5.
Sample Calculation (re: $9534.00 maximum allowable)……….….……………. page 18
6.
Wage Enhancement Utilization Declaration………………………………………...page19
7.
Wage Enhancement Utilization Declaration Guidelines………………………….page 20
8.
Wage Enhancement Utilization Declaration Definitions and Examples………page 22
9.
Special Purpose Report Sample……………………………………………………...page 23
10.
Financial Report…………………….…………………………………………………...page 24
11.
Administering Wage Enhancement Funding Sample……………………………..page25
12.
Janitors and Bookkeepers Declaration Form……………………………………...page 26
Master 634441 / WE 752439 v2
page 12 of 27
REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
1.
WAGE ENHANCEMENT UPDATE FORM
The information declared by the Service Provider on this Form is used to calculate the
Service Provider’s wage subsidy entitlement. Any decrease in the reported number of
FTE’s or Operating Capacity for an extended period of time must be reported by the
Service Provider immediately and any excess funding returned to the Region.
Wage Enhancement Update Form
Master 634441 / WE 752439 v2
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
2.
GUIDELINES FOR COMPLETING THE WAGE ENHANCEMENT UPDATE FORM
SECTION A
AGENCY & SITE
INFORMATION:
Complete the agency name, site name, (use one form per site) site address,
name, phone number and e-mail address of person completing this form in
the event there are clarification questions.
SECTION B
The information you provide in this section will be used to calculate the FTE
(full time equivalent) staff positions. The FTE is used to determine the
amount of wage subsidy and /or wage improvement (if available) your
agency is entitled to receive.
STAFFING:
As you move across the columns input the position titles and number of staff
in each position. Enter the weeks employed per year and hours employed
per week. The Standard Work Week Column should show the standard
number of hours employees work per week (usually 35, 37.5 or 40).
Please Note: As per the Ministry’s Wage Subsidy Guidelines, 35 hours a
week is considered a minimum standard work week; therefore, anything less
than 35 hours will be considered less than full time when calculating a Full
Time Equivalent (FTE) staff position.
Programs that operate less than 35 hours per week should enter the actual
number of hours employees work (are paid for) in the Hours Employed per
Week column and 35 hours per week in the Standard Work Week Column.
These two numbers are used to calculate the full time equivalency and a
Standard Work Week of 35 hours is needed for the denominator in the
calculation formula.
Directors/Mgrs/
Owners/Admin.
Staff:
Enter the Directors, Managers, Owners and Administrative staff.
Supervisor:
Enter the Supervisory position or equivalent position to that of a supervisor
as set out in the Day Nursery Act.
ECE (trained and
untrained)
Resource
consultants:
Enter the number of trained/untrained ECE’s; resource consultants and
Home Visitors (for Home Provider sites).
Other Staff
(janitors,
maintenance,
cooks):
Include positions such as Cooks, Bookkeepers, Janitors; Cleaning Staff; Bus
Drivers etc. that are included in the agencies payroll and are declared on the
T4 summary.
Please Note: As per Ministry Guidelines, persons paid on a fee for service
basis such as accounting services or janitorial services; students and staff
whose salaries are covered by employment programs and persons working
on short term projects such as developing parent handbooks are
positions that would not be eligible for wage enhancements and therefore
would not be included in this form.
The final two columns are for office use only. Agencies completing this form
electronically will see that the form automatically populates FTE information.
DOCS #432190
For completion by Child Care Centres
Master 634441 / WE 752439 v2
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
GUIDELINES FOR COMPLETING THE WAGE ENHANCEMENT
UPDATE FORM Cont.
SECTION C
PROGRAM
INFORMATION:
The information input in section C is used to determine the Direct Operating
Grant (DOG) as part of your overall Wage Subsidy Entitlement. Complete
the Licensed Capacity in the first column and the Operating Capacity in the
second column for each age group. Input the number of hours that the
program operates each day, the number of days the program operates per
week and the number of months the program operates per year. If more
space is required to list alternate programs that operate in each age group,
please copy this page and add this additional information.
The Alternate Program Section is used to identify programs that operate at
different times of the year. For example, a School Age program may operate
full time for 2 months of the year (during the summer) and then part time
during the school year. A program offering School Age care 20 hours per
week for 10 months of the school year could be listed in the Basic Program
section. Full time care during the school holidays, generally over 39 hours
per week would be listed in the Alternate Program section of the form.
Operating Capacity is defined as the number of children for which the
program is staffed on a regular basis. Operating capacity cannot exceed
licensed capacity but may be less than licensed capacity. For example, a
child care program may be licensed for 24 preschool children but only 15
children are enrolled. The Day Nursery Act (DNA) requires that two staff are
required for the 15 children enrolled. The operating capacity would therefore
be increased by Valerie Ouellette as 16. This may be confusing but is an
important distinction as the DOG portion of your Wage Subsidy entitlement
will be impacted by the number input in this section. If 23 children were
enrolled the operating capacity would be input as 24 by Val as three staff are
required.
SECTION D
For completion by Home Child Care Agencies only
Average Daily Enrollment is defined as the average number of children
enrolled in the private home day care per day. This is determined by dividing
the total number of days of child care provided by the total days of operation.
Average number of Providers is the average number of Providers under
contract annually.
Complete the signature portion of the form and return to the attention of:
Candace Goudy, Manager of Children’s Services Administration
Region of Waterloo
Children Services Administration
99 Regina Street, 5th Floor
Waterloo, ON N2J 4G6
Information about Wage Subsidy can be found on the Region of Waterloo Website:
www.region.waterloo.on.ca/socialservices. Click on the Social Services page, then Children,
and then the Funding and Administration icon.
DOCS #435697
Master 634441 / WE 752439 v2
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
3.
WAGE ENHANCEMENT UPDATE FORM DEFINITIONS AND EXAMPLES
Staff Positions: Wage Subsidy is to be provided to permanent full and part-time eligible staff. A
permanent position is one that is part of the program’s regular staffing complement. The position may be
full or part time. Persons working on short term projects or whose salaries are covered through other
programs such as Futures12, and persons paid on a fee for service basis such as Accountants, or
Cleaning Services are not considered permanent staff for purposes of wage subsidy and would therefore
not be included in the Full Time Equivalent (FTE) total. It is a new Provincial requirement to list
program staff FTE’s by the age of the children 0-5 and 6-12.
Number of Full Time Equivalents: To determine the FTE, three variables are used: the agency’s
normal work week, the number of weeks the centre operates each year, and the number of full and part
time staff. Please note, a minimum13 of 35 hours per week is considered full time. Normal work weeks
will vary from agency to agency. The number the agency has established for job posting purposes is the
number of hours per week to be used in the calculation to determine the number of FTEs in the agency.
The following table can be used to calculate the number of FTEs:
Position
Number of staff Number of Weeks employed
Hours employed
FTE
divided by 52 weeks of the
divided by agency’s
year
standard work
x
x
=
For example, a child care agency may have ten staff. Ten staff is comprised of one Supervisor, seven
teachers, one cook and one part time Administrator. The agency contracts with a janitorial service to
clean the centre two nights per week. In this example, the agency’s normal work week is 40 hours per
week and their FTE is 9.3. The following table demonstrates how the FTE was calculated:
Position
Number of staff
Number of Weeks
Hours employed
FTE
employed divided by 52
divided by agency’s
weeks of the year
standard work week
Supervisor
1
52/52
40/40
x
x
=
1
Teacher
7
52/52
40/40
x
x
=
7
Cook
1
52/52
20/40
x
x
=
.5
Administrator
1
52/52
32/40
x
x
=
.8
Total FTE
=
9.3
If this agency closed during the summer months the data in the column “Number of Weeks employed”
would be different. Instead of operating 52 weeks of the year, the centre in this example closes for 12
weeks and operates 40 weeks per year. The FTE for this centre is 7.2. The following table
demonstrates how this is calculated:
Position
Number of staff
Number of Weeks
Hours employed
FTE
employed divided by 52
divided by agency’s
weeks of the year
standard work week
Supervisor
1
40/52
40/40
x
x
=
.8
Teacher
7
40/52
40/40
x
x
=
5.4
Cook
1
40/52
20/40
x
x
=
.4
Administrator
1
40/52
32/40
x
x
=
.6
Total FTE
=
7.2
Neither example above included a janitor as the agency contracts with a cleaning service. If however, a
part time staff person such as a part time cook or teacher cleaned the centre the position and the related
hours of cleaning could be claimed on the form; however, one person can not be counted as more than 1
FTE even if this person works more than the agencies standard work week, they are still one FTE.
DOCS #435697
12
13
Government sponsored and funded work placements.
Ontario Child Care Services Management Guidelines Page 9 Direct Operating Grant
Master 634441 / WE 752439 v2
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
4. PROVINCIAL WAGE ENHANCEMENT CALCULATION FORM
Information provided by the Service Provider on the Wage Enhancement Update Form is
entered onto the Provincial calculation form to determine funding.
Points assigned by the Province for Hours of Operation:
1- 9 hours per week = 8 points
20 - 39 hours per week = 2 pts
10 -19 hours per week = 4 points
39 + hours per week = 1 pt
Master 634441 / WE 752439 v2
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
SAMPLE CALCULATION SHOWING MAXIMUM WAGE SUBSIDY $9,534. FOR 1 FTE
Master 634441 / WE 752439 v2
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
5.
WAGE ENHANCEMENT UTILIZATION DECLARATION FORM
When printing this form from the Web Page you will need a printer with capacity to print
legal size text. Alternatively you can also contact the Administration Office at 519-5754757 ext 3273 and request a copy of this Form.
Master 634441 / WE 752439 v2
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
6.
GUIDELINES FOR COMPLETING THE WAGE ENHANCEMENT UTILIZATION
DECLARATION
SECTION 1
AGENCY & SITE
INFORMATION:
Complete the Head Office name and address (use one form for all sites).
SECTION 2
Section 2 and Section 3 are used to report the Wage Subsidy and Pay
Equity (if applicable) received and how it was distributed.
STAFF POSITION
List the Full Time Equivalent (FTE) staff working in each position group
that is eligible to receive Wage Subsidy. FTE’s can be determined from
the Wage Enhancement Update form which established the Wage
Subsidy funding entitlement to your centre. Please contact our office to
obtain this information if necessary.
As you move across the columns input the Base Salary (salary before
wage subsidy is funded); the Wage Subsidy distributed to each position
group; the Pay Equity distributed (if applicable) and the total of all rows.
The total should be the Annual Salary for each position group including
wage subsidy and pay equity.
NOTE: Home Visitor and Private Home Provider lines are for Home Child
Care operators only.
SECTION 3
PROGRAM
INFORMATION:
DOCS #676297
1. Report the total amount of Wage Subsidy received.
2. Report the total amount of Pay Equity received (if applicable).
3. Total of the above two amounts (this will populate automatically if
completing electronically)
4. Report the Wage Subsidy and Pay Equity used for salaries. (The total
wage subsidy can be found by totaling the 1st, 3rd and 4th lines on the
Wage Subsidy Budget Summary). The total Pay Equity (if applicable) can
be found on the Pay Equity Budget Summary Union Settlement (line K).
5. Report the amount of funding used for Employer’s Mandatory
Benefits. The only allowable Mandatory Benefits are Canada Pension
Plan, Workplace Safety Insurance Board, Employment Insurance
Premiums and the Employer Health Tax (if over $400,000.00 in wages).
Information about the EHT is available at www.rev.gov.on.ca/en/tax/eht/.
Mandatory benefits can not be deducted at a higher percentage than
allowed for by the governing bodies. It is the responsibility of the
Employer to keep informed of the percentage of deductions. Employers
who deduct more than the approved amounts are in contravention of
their legal agreement and are withholding funds meant to be provided to
child care staff. Please note if you do not deduct the Mandatory
Benefit amounts enter zero in this section.
NOTE: In summary, the amount of rows 5 and 6 include the portion of
wage subsidy used to offset the increase in Mandatory Benefits
6. Add lines 4 and 5. (this will populate automatically if completing the
form electronically)
7. Subtract line 7 from line 3 to determine if all Wage Subsidy and Pay
Equity (if applicable) have been used for purposes intended. If a variance
occurs please provide an explanation of the variance. Funds not used
are to be returned by way of a cheque made payable to the Region of
Waterloo. Please contact our office if you wish to discuss the variance
prior to returning the funds to the Region.
Section 4 and 5 are used to report the Wage Improvement received
and how it was distributed. If a variance occurs please provide an
explanation of the variance. Funds not used are to be returned by way of
a cheque made payable to the Region of Waterloo. Please contact our
office if you wish to discuss the variance prior to returning the funds to
the Region. The next page defines wage improvement reporting in
detail.
Master 634441 / WE 752439 v2
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
GUIDELINES FOR COMPLETING THE WAGE ENHANCEMENT
UTILIZATION DECLARATION (Cont.)d
SECTION 4
List the Full Time Equivalent (FTE) staff working in each position that is
eligible to receive Wage Improvement. FTE’s eligible for Wage
Improvement can be determined from the Wage Enhancement Update
form which is used to calculate the Wage Improvement funding
entitlement for your centre. Please refer to the Wage Enhancement
Update Form submitted in the first quarter of the year. Contact our office
to obtain this information if necessary.
STAFF POSITIONS
Report the Wage Improvement distributed to each FTE group.
NOTE: Home Visitor and Private Home Provider lines are for Home Child
Care operators only.
SECTION 5
PROGRAM
INFORMATION
1. Report the amount of Wage Improvement received. The total amount
wage improvement funding can be found on the 2nd line of your Wage
Subsidy Budget Summary.
2. Report the amount of Wage Improvement provided to eligible staff.
3. Report the amount used for Employer’s mandatory benefit costs. Only
the portion of wage improvement used to offset the increase in
Mandatory Benefits can be deducted.
4. Add lines 2 and 3 (this will populate automatically if completing
electronically).
5. Subtract line 1 from line 4 to determine if all Wage Improvement funds
were used for purposes intended. Please contact our office immediately if
a variance is occurs. If a variance occurs please provide an explanation
of the variance. Funds not used are to be returned by way of a cheque
made payable to the Region of Waterloo. Please contact our office if you
wish to discuss the variance prior to returning the funds to the Region.
Complete the signature portion of the form and return to the attention of:
Candace Goudy, Manager of Children’s Services Administration
Region of Waterloo
Children Services Administration
99 Regina Street, 5th Floor
Waterloo, ON N2J 4G6
Information about Wage Subsidy can be found of the Region of Waterloo Website:
www.region.waterloo.on.ca/socialservices. Click on the Social Services page, then Children,
and then the Funding and Administration icon.
DOCS #676297
Master 634441 / WE 752439 v2
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
7.
DEFINITIONS AND EXAMPLES FOR THE COMPLETION OF THE WAGE
ENHANCEMENT UTILIZATION DECLARATION
Base Salary: This is the total base salary provided for each of the positions excluding Wage
Enhancement funding. For example, if there were 3 FTE trained ECEs each at a base salary of
$24,000 per year; the total base salary provided by the employer would be $72,000.00 (3 X
24,000).
If there were 2.5 trained ECEs each at a base salary of $24,000 per year, the total base salary
provided by the employer would be $60,000.00 (2.5 X 24,000).
Wage Subsidy: This is the amount of Wage Subsidy the employer provided to each of the
positions. 14 For example, if the employer had 10 FTE staff all eligible for wage subsidy and
received $80,000.00 in wage subsidy, the amount provided to each of the positions would be
entered in this column.
Benefits: Wage subsidy can be used for a portion of the Employer’s Mandatory Benefits.
Mandatory Benefits include the employer’s share of CPP, WSIB, EI, and the EHT. The
employer includes the additional cost for Mandatory Benefits resulting from an increase in wage
subsidy.
Total Amount of Wage Subsidy Received: This refers to the total amount of wage subsidy
your agency received from the Region of Waterloo. The total can be found in your Service
Contract on the Budget Summary Schedule A which identifies the Wage Subsidy and Wage
Improvement funding”. Do not include Pay Equity funding, Special Needs Resourcing funding,
or One Time funding in this total.
Authorized Signing Officer: Non profit agencies require two signing officer’s signatures as per
requirements set out under the Non Profit Charitable Organizations Act. Private or commercial
operators require one signature; generally this is the owner/operator’s signature.
Special Purpose Report: As part of the audited and un-audited financial verification process,
agencies are required to include a Special Purpose Statement and Financial Report confirming
the amount of Wage Subsidy funding received from the Region of Waterloo. The Special
Purpose Report must state that Wage Enhancement funding was used solely for the purposes of
increasing eligible staff salaries beyond the employer’s minimum wage requirements. See page
21 and 22 for more information on the Special Purpose Report and Financial Report.
SAMPLE SPECIAL PURPOSE REPORT:
8.
The sample Special Purpose Report on the next page should be shared with your Auditor or
Finance Person to ensure they understand the information the Region requires for our internal
and external audit process. Please provide your Auditor, Finance person or Board Member
(Treasurer or Finance Member) with a copy of your Wage Enhancement Utilization Statement,
Service Description, Service Contract and Budget. These documents will enable your Auditor,
Finance Person or Board Member to conduct a review or audit on your agency’s payroll records
in accordance with Canadian generally accepted auditing standards (if being completed by an
Auditor) and to include such tests deemed necessary to express an opinion on salaries and
benefits paid by the employer as well as expressing an opinion that Wage Enhancement funding
was:
•
•
•
used for the purposes intended of increasing salaries for eligible staff, beyond the
Employer’s minimum wage requirements; and
that the funds used for mandatory employer benefits were within the eligible amounts
and; that
only the approved mandatory benefits were deducted.
14
Ontario Child Care Services Management Guidelines on Wage Subsidy Page 12 refers to a reasonable
distribution of wage subsidy. Reasonable is defined in Webster’s Dictionary as equitable, moderate and fair.
Master 634441 / WE 752439 v2
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
SAMPLE SPECIAL PURPOSE REPORT:
Report on Employer Salaries, Benefits and
Wage Enhancement Funding
To the Region of Waterloo, Children’s Services Division
I have reviewed the payroll records of “agency name” for the year ending “actual date” for the
purposes of reporting the employer’s salaries and mandatory benefits paid and the amount of
Wage Enhancements (Wage Subsidy, Wage Improvement and Pay Equity if applicable)
received and utilized in accordance with the funding conditions outlined in the Service
Agreement. Minimum wage requirements as set out under the Ministry of Labour have been
met by the Service Provider and Wage Enhancement Grants were used to increase the
employer’s minimum wage requirement.
My audit (see note below if not a Chartered Accountant) of the payroll records was conducted in
accordance with Canadian generally accepted auditing standards and included such tests
deemed necessary to express an opinion on the salaries and benefits as well as the utilization of
Wage Enhancement funding. I have read a copy of the Service Agreement to determine the
funding conditions to be complied with by “agency name”.
During the year ended “actual date”, “agency name” received $amount in Wage Subsidy,
$amount in Wage Improvement and $amount in Pay Equity funding. The total amount of
funding received has been used for its intended purpose of staff salaries and mandatory
benefits.
____________________
Signature Line
Signed by Chartered Accountant
Member #
Location
Date
Provide this report to your Auditor or Finance Person to ensure the Region receives information
required for our internal and external audit process. We provide this sample so that the service
provider can advise what information is required for an audit/review, to keep the costs
reasonable, and to provide the Region with information required to ensure financial integrity,
accountability and transparency in the use of public funds.
NOTE: If the person completing this report is not a Chartered Accountant then the
wording in the second paragraph would be changed from “Audit” to “My review of the
payroll records was conducted in a manner that would enable me to express an opinion
on the salaries and benefits as well as the utilization of Wage Enhancement funding. I
have read a copy of the Service Agreement to determine the funding conditions to be
complied with by “agency name”.
The report would be signed with what your title is for example, Treasurer of the Board of
President of the Board of Directors.
DOCS 656916
Master 634441 / WE 752439 v2
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
< Insert Name of Auditing Company/Finance Person >
“Insert Child Care Agency Name”
Child Care Base Salaries, Benefits and Wage Enhancement Summary
Year Ended “date”
BASE SALARY AND WAGE SUBSIDY:
Staff
Category
FTE
Employer
Base
Salary
ECE Program
Supervisor
Non-Program
3.35
1.00
0.38
4.54
$66,196.00
$39,767.21
$11,120.23
$117,083.44
Wage Subsidy Received 15
Wage Subsidy Used for Salaries
Wage Subsidy Used for Mandatory Benefits
Unallocated Wage Subsidy
Municipal
Wage
Subsidy
Total
$21,065.34
$ 6,288.16
$ 2,389.51
$29,743.01
$87,261.34
$46,055.37
$13,509.74
$146,826.45
$29,743.01
($26,863.27)
($ 2,879.74)
--nil--
WAGE IMPROVEMENT:
Staff
Category
ECE Program
Supervisor
FTE
Wage
Improvement
Distributed
3.35
1.00
4.35
$3,098.75
$ 925.00
$4,023.75
Wage Improvement Received
Wage Improvement Used for Salaries
Wage Improvement Used for Mandatory Benefits
Unallocated Wage Improvement
$4,023.75
($3,634.17)
( $389.58)
--nil--
_____________
Signature
Signed by Chartered Accountant if over $100,000.00 in wage enhancements.
Member #
656916
Page 2 of 2
2009 MANDATORY BENEFITS (allowable for Wage Enhancement funding deduction)
CPP = 4.95% after basic exemption of $3,500 annually
EI = 2.42%
EHT (heath tax) = 1.95%
WSIB* $1.40 on $100.00 salary.
15
Wage Subsidy cannot exceed $9,534.00 per full time equivalent staff person.
Master 634441 / WE 752439 v2
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
1. SAMPLE OF ADMINISTERING THE WAGE ENHANCEMENT FUNDING
Note: For a month with 3 pays, take the monthly amount and divide by 3. For example,
the monthly amount of $287.32 divided by 3 pays would equal $95.77 per pay in a month
where there are 3 pay periods.
Master 634441 / WE 752439 v2
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
1.10
INCUDING JANITORS AND BOOKKEEPERS AS ELIGIBLE FOR WAGE SUBSIDY
The following is a Sample Letter agencies will receive when they have declared Janitors and
Bookkeepers as part of their Wage Subsidy FTE calculation on the Wage Enhancement Update
Form:
Pleased be advised that as part of the Region’s funding policy review Children’s Services
Division is reviewing the wage subsidy entitlement of all centres who list Janitors and
Bookkeepers as part of their staffing compliment on the Wage Enhancement Update Form.
As stated on Page 8 in Section 2.1 of the Provincial Ontario Child Care Service Management
Guidelines on Wage Subsidy “persons who are paid on a fee for service basis such as
Accounting Services or Janitorial Services” are not eligible to receive Wage Subsidy.
If the Janitor or Bookkeeper you identified on your Wage Subsidy and Wage Improvement
Update Form is hired on a fee for service basis from an agency, they would not be eligible to be
included as part of your FTE staff. If however, they are employees of your organization and are
part of your agency’s payroll please confirm by faxing a copy of your recent T4 Summary to fax
number 519-884-7158. The number of employees declared on line 88 of the T4 Summary will
be compared to the number of employees declared on your Wage Subsidy and Wage
Improvement Update Form.
If the Janitor or Bookkeeper is not an employee of your organization and you have included
them in error please contact Val Ouellette at 519-575-4757 extension 3273 so an adjustment in
funding can be made as well as corrections made to your Wage Enhancement Update Form. A
notation will be made on your file for future reference.
Thank you for your immediate attention to this matter and assisting us in ensuring integrity and
accountability in the use of public funds.
Sincerely,
Candace Goudy
Manager Administration
Master 634441 / WE 752439 v2
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REGION OF WATERLOO WAGE ENHANCEMENT POLICY GUIDELINES
Tracking amendments and edits by date on the Wage Enhancement Funding Policy
Guidelines:
Date:
Edit Summary Details:
2010/01/10
The Wage Enhancement Funding Policy Guidelines were established.
2010/25/03
Final revisions made and placed on Web Site
2011/20/01
Revised Page 6, 10 & 19 changing:
Ontario Health Tax to Employer Health Tax.
repositioned the (if over $400,000. in wages) to after the Employer Health
Tax provided a Website for Employer Health Tax information which includes
information such as: “Ontario levies a payroll tax on employers, the “Employer Health
Tax’, of 1.95 % of payroll. Eligible employers are exempt on the first $400,000. of payroll.
This tax was designed to replace revenues lost when health insurance premiums, which
were often paid by employers for their employees, were eliminated in 1989.
Premiums for the Employment Insurance system and the Canada Pension Plan are paid by
employees and employers. Premiums for Workers Compensation are paid by employers.
These premiums account for 12% of government revenues. These premiums are not
considered to be taxes because they create entitlements for employees to receive
payments from the programs, unlike taxes, which are used to fund government activities.
The funds collected by Canada Pension Plan and by Employment Insurance are in theory
separated from the general fund. It should be noted that Unemployment Insurance was
renamed to Employment Insurance to reflect the increased scope of the plan from it is
original intended purpose.
Employment Insurance is unlike private insurance because the individual’s yearly income
impacts the received benefit. Unlike private insurance, the benefits are treated as taxable
earnings and if the individual had a mid to high income for the year, they could have to
repay up to the full benefit received.
2011/03/03
Updated page 22 to include wording at the bottom of the form to be
used by someone who is not a Chartered Accountant.
2011/03/08
2011/05/10
2012/01/03
Added paragraph on page 6 to clarify : When a wage subsidy funding
pressure process is in place, all requests for wage subsidy funding for
expansion and new centres will be placed on a pressure list. Operators
cannot decrease current staff’s wage subsidy funding levels to
accommodate staff expansion nor can operators transfer funds from one
program to another program.
Added Communication title to paragraph.
Vacation Pay: The agency paying the grant is required to list the Wage
Enhancement grant amount separately in their payroll ledger and on each
pay stub.
Therefore, when the agency does pay vacation pay it is easy for them to
calculate the vacation pay amount payable.
The vacation pay amount payable is a percentage of regular earnings only
(no vacation pay paid on the wage enhancement grant amount).
If the agency is keeping the wage enhancement grant amount separate, this
is an easy process.
Master 634441 / WE 752439 v2
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