What to Pay?

Determining how to pay employees and what to pay them can be a difficult decision for employers. In addition, there are many laws which govern how employees should be paid.

Resources

Ontario Ministry of Labour – Minimum Wage
Canada Revenue Agency – Hiring an employee
Government of Canada – Information for Employers
Canada Business Network – Employees
Ontario – Ministry of Labour – Hours of Work (Eating Periods)

Public Holiday Pay

In Ontario, the Employment Standards Act provides for nine public holidays for which almost every type of employee is qualified regardless of how long they’ve been working.

New Year’s Day
Family Day
Good Friday
Victoria Day
Canada Day
Labour Day
Thanksgiving Day
Christmas Day
Boxing Day

Resources

Payroll

This is how employees are paid, manually or through a system. The Payroll department or person is responsible for ensuring the direction they receive is translated into appropriate payment to the employees, within legal guidelines.

Resources

Canada Revenue Agency – Video – Series: Payroll Information for a New Small Business
Canada Revenue Agency – How payroll works
Canada Revenue Agency – Employer responsibilities – The payroll steps
Canada Revenue Agency – Payroll
Canada Revenue Agency – T2200 Declaration of Conditions of Employment
Government of Canada – Hire and manage employees

Payroll Deductions

Resources

Canada Revenue Agency – Payroll Deductions Tables – CPP, EI, and income tax deductions – Ontario – Effective January 1, 2015
Canada Revenue Agency – Payroll Deductions Online Calculator – Disclaimer
Canada Revenue Agency – T4 Statement of Remuneration Paid (slip)
Canada Revenue Agency – T4SUM Summary of Remuneration Paid

Perquisites

Perquisites are often referred to as ‘perqs’ or ‘perks’. This can be everything from a cell phone or company car to health club or golf memberships to tickets to a baseball game. Often a perk is a taxable benefit under the CRA.

Resources

The Balance – Taxable Benefit
Canada Revenue Agency – T2200 Declaration of Conditions of Employment
Canada Revenue Agency – Employee and Shareholder Benefits (GST 400-3-2)

What are benefits and how they work

Employee benefits often refer to the health benefits that an organization provides for their employees although it may include various types of insurance, pension and even wellness programs.

Resources

How to choose a benefit provider

Choosing a good benefit provider can ensure that the organization saves money and gets excellent customer service. Each organization will differ in the primary reason for choosing the right provider for their organization. Often companies will use a benefit broker to assist in their search and determination of what provider to use.