Get the advice on your holiday pay.
Employers are required to calculate your vacation earnings on your pay cheque.
How is employee net pay calculated?
Employers arrive at net pay by deducting the following:
- Statutory deductions: EI, CPP and taxes
- Other deductions that are either voluntary or non-voluntary – including pension plan contributions, insurances and union dues.
These statutory deductions are reported on the Information Slip that are sent after February 28 of the following year.
This money is held in trust until the payroll liabilities are submitted to the proper government agencies or other deductions are sent to 3rd parties for health insurance, union dues, pension and vacation pay.
You will receive holiday pay for this statutory Holiday?
You will be paid for this a statutory holiday, if you worked before the holiday.
- 30 days as a full-time employee in last month
- 15 days as a part-time employee in last month
You pay rate will change all depending – did not work or worked on this holiday pay.
- regular time
- 8 to 12 hours – time and a half
- Over 12 hours – double time
The hours on statutory holiday and your vacation time off from work.
What is your vacation pay?
Vacation pay of 4% or 6% may be added to each pay cheque or accrued and paid out when the employee takes vacation.
If you are an employee working less than five years, have worked in last 12 months, you are entitled to 2 weeks vacations are paid at 4%. If you have worked more the five years, you are entitled to 3 weeks’ vacation leave is paid 6%.
As the employer you are required?
All employers are required by law to pay holiday pay and provide time off for employees’ base on your business operation. This means employee can have vacation leave at a time it does impair the business profits. Know about incentive packages, offering benefits and allowances to your employees.
We can help will the understanding of your payroll resources, calculating your pay or answer your questions about payroll.
For more information – or to get advice tax return done for you – contact Ina.