Stipenda

Canada-fact-sheet

Eor in Canada

Payroll and HR Fact Sheet for Canada

1. Payroll Overview

 

Key Elements:

  • Minimum Wage: Varies by province. For example, as of 2024, the minimum wage in Ontario is $16.55 per hour.
  • Overtime Pay: Typically 1.5 times the regular rate for hours worked beyond standard work hours (usually 40 hours per week).
  • Deductions: Income tax, Canada Pension Plan (CPP), Employment Insurance (EI), and other statutory deductions.

Federal Requirements:

  • CPP Contributions: Both employer and employee contribute.
  • EI Premiums: Both employer and employee contribute.
  • Income Tax: Based on progressive tax brackets.

Provincial Variations:

Each province may have specific requirements for payroll calculations, minimum wage, and statutory holidays.

2. Human Resources Compliance

Key Legislation:

  • Canada Labour Code: Governs employment standards, workplace health and safety, and industrial relations.
  • Provincial Employment Standards Acts: Each province has its own legislation covering aspects such as vacation, leave, and termination.

Employment Standards:

  • Hours of Work: Generally, a standard workweek is 40 hours.
  • Vacation: Typically, employees are entitled to at least 2 weeks of paid vacation per year after completing one year of service.
  • Public Holidays: Varies by province, with common holidays including New Year’s Day, Canada Day, and Christmas Day.

3. Statutory Benefits

Employment Insurance (EI):

  • Provides temporary financial assistance to unemployed workers.
  • Employer and employee contributions are mandatory.

Canada Pension Plan (CPP):

  • Retirement pension, disability benefits, and survivor benefits.
  • Mandatory contributions from both employer and employee.

Workplace Safety Insurance:

  • Administered provincially, e.g., WSIB in Ontario.
  • Provides compensation for work-related injuries and illnesses.

4. Employee Rights

Equal Employment Opportunities:

  • Anti-discrimination laws prohibit discrimination based on race, gender, age, disability, etc.
  • Employers must provide reasonable accommodations for disabilities.

Workplace Health and Safety:

  • Governed by federal and provincial regulations.
  • Employers are responsible for providing a safe working environment and complying with safety standards.

Termination and Severance:

  • Notice periods and severance pay depend on the length of service and vary by province.
  • Federally regulated employees may have different rules under the Canada Labour Code.

5. HR Best Practices

  • Record Keeping: Maintain accurate records of employee information, payroll details, and compliance with employment standards.
  • Employee Training: Regular training on workplace safety, harassment prevention, and diversity and inclusion.
  • Performance Management: Implement a system for regular performance reviews and feedback.
  • Compliance Audits: Periodic audits to ensure adherence to federal and provincial laws.