[Canada] Ottawa proceeds with payroll data system tracking 21 million workers

In Canada, Ottawa is proceeding with a pilot project to collect real-time payroll information from more than 21 million workers, described by critics as the largest federal data initiative ever attempted, Western Standard reports.

According to Blacklock's Reporter, the ePayroll system would centralise employment and demographic data from nearly every employer in the country. However, no parliamentary committee has reviewed its scope, cost, or the privacy implications.

A budget note reportedly said the Department of Employment will receive funding “to launch a pilot project to assess whether Employment Insurance eligibility and entitlement can be determined accurately and securely using real-time payroll information.”

The total cost has yet to be disclosed, but research to date has cost $43.9 million.

The Department of Employment reportedly said that the ePayroll program would eventually allow federal agencies to “securely send payroll, employment and demographic information to a protected Government of Canada repository.”

The intention is to streamline reporting for employers, simplify Employment Insurance processing, and reduce duplication across departments. However, privacy concerns have already come to the forefront. 

Internal polling in 2023 reportedly found widespread distrust of the plan.

According to the ePayroll Public Opinion Research report, 80 per cent of respondents said employers should be required to obtain their consent before sharing payroll data with the federal government. Only 43 per cent said they trust Ottawa to keep their personal information secure.

“Negatives that came to mind most often for participants had to do with data security, for example, potential breaches and privacy issues,” the report said.

Canadians reportedly questioned how the government would protect the information, who could access it, and how long it would be stored.

Despite growing concern, Ottawa appears ready to move forward with the pilot. If fully launched, ePayroll would give federal departments near real-time access to workers’ income and employment data. Something privacy advocates warn could blur the line between efficient administration and government overreach.

Source: Western Standard

(Quotes via original reporting)

In Canada, Ottawa is proceeding with a pilot project to collect real-time payroll information from more than 21 million workers, described by critics as the largest federal data initiative ever attempted, Western Standard reports.

According to Blacklock's Reporter, the ePayroll system would centralise employment and demographic data from nearly every employer in the country. However, no parliamentary committee has reviewed its scope, cost, or the privacy implications.

A budget note reportedly said the Department of Employment will receive funding “to launch a pilot project to assess whether Employment Insurance eligibility and entitlement can be determined accurately and securely using real-time payroll information.”

The total cost has yet to be disclosed, but research to date has cost $43.9 million.

The Department of Employment reportedly said that the ePayroll program would eventually allow federal agencies to “securely send payroll, employment and demographic information to a protected Government of Canada repository.”

The intention is to streamline reporting for employers, simplify Employment Insurance processing, and reduce duplication across departments. However, privacy concerns have already come to the forefront. 

Internal polling in 2023 reportedly found widespread distrust of the plan.

According to the ePayroll Public Opinion Research report, 80 per cent of respondents said employers should be required to obtain their consent before sharing payroll data with the federal government. Only 43 per cent said they trust Ottawa to keep their personal information secure.

“Negatives that came to mind most often for participants had to do with data security, for example, potential breaches and privacy issues,” the report said.

Canadians reportedly questioned how the government would protect the information, who could access it, and how long it would be stored.

Despite growing concern, Ottawa appears ready to move forward with the pilot. If fully launched, ePayroll would give federal departments near real-time access to workers’ income and employment data. Something privacy advocates warn could blur the line between efficient administration and government overreach.

Source: Western Standard

(Quotes via original reporting)