Vacation Pay Affects Payroll Processing
Vacation pay affects your payroll processing. This is true of almost any jurisdiction you operate in, including different states and provinces, and even different countries.
In Canada, the provinces have final say over how vacation pay is to be tabulated and disbursed to employees. Quebec, for example, has some unique rules about how much vacation time employees are entitled to and how much pay they receive. Ontario’s rules are different, as are BC’s and Alberta’s.
What about Saskatchewan? Vacation pay is different there yet again.
Who’s Eligible?
Vacation entitlements and pay are governed by the Saskatchewan Employment Act. If your employees are governed by the Act, then they’re likely entitled to annual vacation pay.
Employees who work …show more content…
It may also include some employees who have taken a break in their employment. The employee must still be employed with you for 52 weeks (a year) or more, but they only have to work 26 consecutive weeks.
This would include an employee who worked 26 weeks beginning in January but was laid off in July. In September, they resume working for you. Since they work through to January of the following year, they’re entitled to vacation pay.
Calculating Vacation Pay
The Act also lays out how vacation pay in Saskatchewan should be calculated. Employers have two options. One is for employees who take their vacation entitlement. The other is for those who don’t take vacation.
During the first nine years of employment, the calculation is 3/52 (approximately six percent) of the employee’s annual salary. You must also calculate vacation pay on the vacation pay at the same rate! Any commissions, overtime, or bonuses paid also need to be included in the calculation.
After ten years of employment, employees earn 3/42 of their annual salaries, plus commissions, bonuses, overtime, or other earnings. This is about eight percent.
Paying Vacation …show more content…
There are two options.
Since vacation pay is a percentage of the employee’s annual wages, the employer can opt to pay vacation pay in one lump sum when the employee takes their vacation. This is designed to replace the employee’s “lost” wages for going on holiday. An employee who earns $15,000 and a $3,000 commission for the year would be entitled to $865.38 for vacation
In Canada, the provinces have final say over how vacation pay is to be tabulated and disbursed to employees. Quebec, for example, has some unique rules about how much vacation time employees are entitled to and how much pay they receive. Ontario’s rules are different, as are BC’s and Alberta’s.
What about Saskatchewan? Vacation pay is different there yet again.
Who’s Eligible?
Vacation entitlements and pay are governed by the Saskatchewan Employment Act. If your employees are governed by the Act, then they’re likely entitled to annual vacation pay.
Employees who work …show more content…
It may also include some employees who have taken a break in their employment. The employee must still be employed with you for 52 weeks (a year) or more, but they only have to work 26 consecutive weeks.
This would include an employee who worked 26 weeks beginning in January but was laid off in July. In September, they resume working for you. Since they work through to January of the following year, they’re entitled to vacation pay.
Calculating Vacation Pay
The Act also lays out how vacation pay in Saskatchewan should be calculated. Employers have two options. One is for employees who take their vacation entitlement. The other is for those who don’t take vacation.
During the first nine years of employment, the calculation is 3/52 (approximately six percent) of the employee’s annual salary. You must also calculate vacation pay on the vacation pay at the same rate! Any commissions, overtime, or bonuses paid also need to be included in the calculation.
After ten years of employment, employees earn 3/42 of their annual salaries, plus commissions, bonuses, overtime, or other earnings. This is about eight percent.
Paying Vacation …show more content…
There are two options.
Since vacation pay is a percentage of the employee’s annual wages, the employer can opt to pay vacation pay in one lump sum when the employee takes their vacation. This is designed to replace the employee’s “lost” wages for going on holiday. An employee who earns $15,000 and a $3,000 commission for the year would be entitled to $865.38 for vacation