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As with the other eight Statutory Holidays in Ontario, staff must be given this day off with calculated holiday pay. An employer is not required to give this particular day off; they can assign a different day as the statutory holiday, however the assigned day cannot be more than three months after the actual holiday unless it has been agreed in writing by the employee and in that case the assigned day can be any time within the following 12 months.
If an employee agrees to work February 17th, and a substitute day is chosen, the employer has a choice of how to compensate the employee for the stat. The Employment Standards Act states that the employer can either
If an employer chooses the second option of payment, the holiday pay is calculated using the four work weeks before the work week in which the substitute day is given.
Some industries have special rules in respect of Statutory Holiday Pay so employers should periodically check The Act to be sure they are within the Minimum Standards.
The Public Holiday Pay Calculator is a great tool, however if you choose a substitute day the calculator will not work for you. To manually calculate the amount of pay, the following is an excerpt from the Employment Standards Act fact sheet on Public Holidays:
The amount of public holiday pay to which an employee is entitled is all of the regular wages earned by the employee in the four work weeks before the work week with the public holiday plus all of the vacation pay payable to the employee with respect to the four work weeks before the work week with the public holiday, divided by 20. Regular wages does not include any overtime or premium pay payable to an employee.
If you have any questions or would like more information about this or any other payroll topic, please contact us
Wednesday December 25 2013, Thursday December 26 2013 and Wednesday January 1 2014 are all statutory holidays to be paid to all Ontario employees (barring, of course, those who are in industries with exceptions). If your business is one of those who has exceptions, follow the guidelines for your industry as outlined in the Act (Employment Standards Act, 2000). You can locate the Act simply by clicking the link on our Links page.
Some employers may choose to be open for business on the statutory holidays, and therefore they can assign a different day as the statutory holiday, however, that assigned day cannot be more than 3 months after the actual holiday, unless it has been agreed in writing by the employee and in that case the assigned day can be any time within the following 12 months. On our links page you will also find the link for the Statutory Holiday Pay Calculator. This is an invaluable tool and if you are not using it, I would encourage you to start.
If you decide to "close" for the holiday week, please remember that the other days within the week are not statutory holidays and do not need to be paid. Some employers choose to use this time as their annual company shutdown and in that case staff will be taking vacation time (Remember that they must also be paid their accrued minimum 4% vacation allotment in addition to the time off). Other employers will allow their employees to use any unused vacation days they have left for 2013 and for still others it will be unpaid days off.
This time of year can be very confusing for employers in respect of payroll and employment requirements. Please call us if you would like our advice in this area.
Installments: If you are required to pay either GST or Income Tax in instalments, your next payment is due on Dec 15th.
Payroll remittance: For all those who pay their source deductions monthly, the payment for November's liability is Dec 15th.
Finally, if you are one of those people who has all year long thought "I must get my papers in order", time is running short! BCD Accounting knows how hectic this month can be, and all too quickly 2014 will be here and the T4s, T5018s and other information slips need to be filed and then it is tax time. We are here for you...we can take the shoe box, the crumpled up pile of receipts, the paperwork that defines what you did this past year...we can take it all and make it into a complete set of financial records for you. Do not feel overwhelmed, give the whole kit and caboodle to us and we will get you set straight.
I know it is too early for most of you, but ...... Don't forget..... we also now do taxes!