Federal ministers see “potential” in an ePayroll scheme to build Canada’s biggest database using payroll, employment and demographic information on 31 million tax filers. A 2023 CRA report found more than half of Canadians distrust the government with their private data, per Blacklock's Reporter. “There is potential for the Department of Employment to use payroll, employment and demographic data,” said the February 5 note from the department.“Government departments and agencies could then access the information when they need it,” the note states, without elaboration.The Trudeau Liberals in 2021 budgeted $43.9 million for three years’ worth of research into ePayroll. No parliamentary committee to date has scrutinized the program. Payroll records include names, addresses, marital status, medical status, parenting status and other information.“Now in its final year the current ePayroll project will deliver a fully costed business case that will have options for the implementation of an ePayroll solution for the Government of Canada that will reduce burdens and increase the speed and accuracy of services and benefits to Canadians with a view to moving to the implementation phase beyond March 2024,” said the note. It again did not elaborate.“The vision of ePayroll in Canada is a service through which Canadian employers can securely send payroll, employment and demographic information to a protected Government of Canada repository. Government departments and agencies could then access the information when they need it,” wrote the department. The Canada Revenue Agency (CRA) in 2023 in-house research found Canadians were uneasy with ePayroll over privacy worries. “Canadians connected to the workforce are much more likely to be very or somewhat concerned about having their payroll, employment or demographic information stored in a single system operated by the government,” reads a CRA report. Asked if they agreed with the statement, “I would want my employer to get my consent before they share my information with the Government of Canada,” 80% agreed. Asked if they agreed with the statement, “I trust the Government of Canada to keep my personal information secure,” only 43% agreed.“Negatives that came to mind most often for participants had to do with data security, for example potential breaches and privacy issues,” wrote researchers “They raised questions about the exchange of information between employers and the government, as well as the accessibility and control of data.”The National Payroll Institute in a 2021 brief said the proposal presented obvious difficulties as “one of the most complex technology projects ever undertaken by the government.” Privacy was crucial given “the sensitive nature of the information,” said the Institute.“The scope and scale of the ePayroll project are massive. It would impact every employer and every worker in Canada.”“The sheer volume of data would be enormous, roughly equivalent to the amount of information submitted at year-end being received every two weeks. Public buy-in is essential.”
