This is really just dealing with the question of taxes and Canada pension plan contributions and employment insurance premiums that are withheld by the employer. Presently, if an employee is repaying their employer, let's say, a year or two after the overpayment, they're repaying the full amount of the salary that they received plus the tax and other contributions that were withheld from that salary. Effectively, the employee would then receive that difference, those taxes, the employment insurance and CPP contributions, back from the Canada Revenue Agency when filing their return.
What we're proposing in this bill is that the employer would only have to collect the salary portion and the CRA would return the difference to the employer, so the employer is no longer acting as a go-between.