2010 Federal Budget Impact Paper

This paper was prepared by the Compensation Sector, Accounting, Banking and Compensation Branch, Public Works and Government Services Canada (PWGSC). It should be noted that this document is not all encompassing. Employees may find this document informative from a personal perspective.

The 2010 Federal budget that was presented by the Honourable James M. Flaherty, Minister of Finance for the Government of Canada on March 4, 2010, was reviewed and contained no new income tax measures affecting federal public service pay or pension payments.

To review the 2010 Federal Budget documents, please visit:

Budget 2010

ITEMS OF INTEREST

Employment Insurance (EI) Rates

The government is maintaining the freeze of the EI premium rate at 1.73% to the end of 2010, as planned.

Impact: Compensation systems will not require a change to the EI premium rate for 2010.

Universal Child Care Benefit for Single Parents

Effective in 2010, a single parent will have the option of including the Universal Child Care Benefit (UCCB) amounts in the parent's income or the income of the dependant. This measure will apply to the 2010 and subsequent taxation years.

Impact:This change will be incorporated into the 2010 income tax return form.