For instance, a salaried employee earning $30,000 per year would be earning $15.31 per hour or $612.40 per week over forty-nine weeks. Fraser Valley, Lower Mainland restrictions, Employment, business and economic development, Birth, adoption, death, marriage and divorce, Birth, adoption, death and marriage reports, Environmental protection and sustainability, Emergency Preparedness, Response & Recovery, doesn't qualify for statutory holiday pay. To continue with the above example, the worker could opt to receive $15 per hour for working the holiday. If your business is not in Ontario, you need to investigate the rules for your own province. Include all wages – this includes salary, commission, statutory holiday pay and paid vacation. To explain how this works, imagine there is a public holiday on a Friday, and your employee doesn’t show up for work on Thursday. The easiest way to calculate holiday entitlement is as it accrues, meaning your staff earn holidays based on the number of hours they work. As of January 2018, Ontario is rolling out new rules on how to calculate employee holiday pay. In contrast, imagine you have an employee who works half days. Outdated browsers lack safety features that keep your information secure, and they can also be slow. Typically, in Ontario, you have to pay all your employees holiday pay, but there are a few exceptions. Alerte COVID, l’application d’avis d’exposition à la COVID-19. Updated: October 21, 2019 © 2019 Intuit Inc. All rights reserved. Legally, it’s just another … Well, in Ontario, there are nine public holidays: Whether your business is open or closed, you have to pay your employees something for these days. Even though they work fewer hours than the other part-time employee, they get a full day of pay. Say you have an employee who works every Saturday and Wednesday. Let’s say you have a full-time employee who has worked 160 hours over 20 days during the last four-week time period. Please contact your financial or legal advisors for information specific to your situation. Check out the holiday pay rules in Ontario. support, pricing, and service options subject to change without notice. Regular day of work. If you are normally open and your employees usually have to work that day, you don’t have to get their agreement to work the holiday in writing. Alternatively, they can receive regular pay for working the holiday and they can take another day off with holiday pay. Don't include overtime. COVID-19 : Obtenez les plus récentes mises à jour, faites une autoévaluation ou renseignez-vous sur Alerte COVID, l’application d’avis d’exposition à la COVID-19. After all this talk about the rules, you might be wondering when these situations apply. Then, you pay holiday pay based on that number of hours. You can calculate this as follows: 5.6 weeks divided by 46.4 weeks (i.e. ), hospitals, and nursing homes. B.C. To calculate holiday pay under the new rules, you add up the number of hours your employee has worked in the previous four-week period and you divide that by the number of days they’ve worked. https://quickbooks.intuit.com/ca/resources/payroll/ontario-payroll-holiday. In this case, you still have to pay them premium pay (time and a half) for the two hours worked, but you don’t have to pay them the rest of their holiday pay. En savoir plus sur les navigateurs que nous supportons. Accéder aux paramètres de votre navigateur. The employee / I was paid vacation pay during the four work weeks before the public holiday Enter any vacation pay, paid or received, in the 4 weeks before the public holiday. To have a better experience, you need to: Le site Ontario.ca exige JavaScript pour fonctionner comme il faut, avec rapidité et stabilité. After your employee chooses between these two options, you have to get their agreement in writing, but there are exceptions for the hospitality industry (resorts, restaurants, hotels, etc. Intuit and QuickBooks are registered trademarks of Intuit Inc. 52 weeks minus 5.6 weeks - the time the employee is on holiday). If an employee doesn't qualify for statutory holiday pay, they get regular pay for working on a statutory holiday. That means you have to pay this employee for eight hours on the next holiday. By Terms and conditions, features, Learn about the browsers we support. Alex's average day's pay is $150. Calculation: Normal pay per day worked x 1.5 (for time-and-a-half), or x 2 (for double-time) = Holiday Pay. To illustrate, look at what happens when you crunch the numbers for a few different employees. This exception to the rule also applies to businesses in continuous operation such as oil refineries, alarm-monitoring stations, and even casinos. has declared a state of emergency. Information may be abridged and therefore incomplete. It’s critical to ensure that you understand these rules or have a financial professional in your corner to help. COVID-19: Get the latest updates, take a self-assessment or learn about the COVID Alert exposure-notification app. The statutory holiday entitlement of 5.6 weeks is equal to 12.07% of the total hours worked in a year. In the last four-week pay period, they worked 80 hours over 20 days. Figure the holiday pay hourly rate. En savoir plus sur les navigateurs que nous supportons. To give you an example, say your employee agreed to work on a public holiday. When you divide 160 hours by 20, the result is eight. This may include paid vacation time or 4% vacation pay (or more) on every cheque or vacation pay in either a portion or a lump sum. To ensure your business is ready, you need to understand the new regulations and how to implement them. When you divide 64 hours by eight days, the result is eight, and you have to pay this employee for eight hours on the next holiday. Employees are paid time-and-a-half for hours worked on a statutory holiday – double-time for hours worked over 12 hours. Average daily wage is calculated as 5% of the employee’s wages, general holiday pay and vacation pay earned in the 4 weeks immediately preceding the general holiday. Les navigateurs désuets ne disposent pas de caractéristiques sécuritaires permettant d’assurer la sécurité de vos renseignements. Pour avoir une meilleure expérience, vous devez : You are using an outdated browser that is no longer supported by Ontario.ca. Here’s an overview of the province’s holiday pay rules. But when your employees work on a public holiday, you have to do a few more calculations, and your employees get to decide how they are compensated. Calculate the employee's hourly rate of pay. Namely, if an employee fails to work their last shift prior to the holiday or their first shift after the holiday, they may not be entitled to holiday pay. Again, you divide 80 by 20, and since the result is four, you pay that employee for four hours on the next holiday. Similarly, if your employee is supposed to work on a holiday and they skip their shift without reasonable cause, they also forfeit their holiday pay. Your employees can opt to receive the public holiday pay plus premium pay for every hour worked. Employees must qualify for statutory holiday pay. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. To illustrate, look at what happens when you crunch the numbers for a few different employees.Let’s say you have a full-time employee who has worked 160 hours over 20 d… Questions about the collection of information can be directed to the Manager of Corporate Web, Government Digital Experience Division. To calculate holiday pay under the new rules, you add up the number of hours your employee has worked in the previous four-week period and you divide that by the number of days they’ve worked. The new rules are likely to increase holiday pay for many part-time employees, and you may want to take steps to ensure you’re ready for those extra expenses before the next holiday rolls around. Calculating holiday entitlement for hourly paid staff Where the full-time entitlement is to statutory minimum only, variable hours employees accrue holiday at the rate of 12.07% of hours worked. Figure out how to calculate holiday pay... https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2018/03/Accountant-Prepares-The-Payroll-For-Her-Ontario-Based-Company.jpg, https://quickbooks.intuit.com/ca/resources/payroll/ontario-payroll-holiday/, Calculating Holiday Pay for Ontario Employees, When and How to File a Record of Employment, How to Calculate the True Cost of a New Employee, What Small Business Owners Should Know About Statutory Holidays, Employer Tax Guide: Employee Tax Implications and What to Know. Using the above example, an employee earning $30,000 per … Kari Brummond. Vous utilisez un navigateur désuet qui n’est plus accepté par Ontario.ca. Ontario.ca needs JavaScript to function properly and provide you with a fast, stable experience. An employee works regular hours and makes $20 per hour. Base your calculation on days worked during the 30 calendar days before the statutory holiday – include vacation days. Now, here’s where the process gets surprising. This same rule applies to the employee’s first day back after the holiday. During the last four-week period, they logged 64 hours over eight days. And if your employees come in for the day, you have to offer premium pay or an extra day off with holiday pay. However, if your employee scheduled a vacation day, took a personal day, or arranged to have Thursday off for another reason, they are still entitled to holiday pay. The above calculations work perfectly if you’re closed on the holiday or if your employees have the day off. Comments will be sent to 'servicebc@gov.bc.ca'. Employees should be paid statutory holiday pay (an average day's pay) for a regular or scheduled day off that falls on a statutory holiday. The employee's vacation pay is paid out on each cheque. 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