This may include paid vacation time or 4-6% vacation pay on every cheque or vacation pay in either a portion or a lump sum. This post provides only an overview of the methods involved in this calculation and is not comprehensive or meant to provide legal advice for all possible circumstances. Christmas/New Year’s) British Columbia If you run a seasonal business or have a lot of part-time workers with schedules that change often, an hourly accrual method will keep things consistent. Qualifying employees with normal work schedules are entitled to take EPSL in an amount that equals the average number of hours that they normally work over a 2-week period, up to a maximum of 80 hours. The employer should use the average number of hours per day that the employer and employee agreed the employee would work at the time of the employee’s hiring. How To Calculate Vacation Pay For Hourly Employees. What if an employee has not worked for the employer for at least 6 months before taking EPSL? All earnings are subject to the usual statutory deductions (tax, EI, CPP). Decide when employees receive their vacation time. Make sure you work the cost of vacation time in with your other financial policies, so you're not offering more than you can afford. Make this policy clear to your new hires so they understand when and how paid vacation becomes available. He is eligible for both regular stat pay and premium stat pay should he be scheduled for the day. If no such agreement exists, then the employer may use the average hours per day the employee was scheduled to work over the entire term of his or her employment. Salaried employees are already paid for stat holidays by their salaries. This typically happens either at the beginning of the year or on the employee's hiring anniversary. Check the legal requirements in your state, as some jurisdictions will not allow you to revoke this earned benefit. Daily allocation requires a bit more math. The purpose of this post is to provide employers with a more in-depth explanation of how to calculate the amount of emergency paid sick leave (EPSL) and expanded family and medical leave (EFML) and the proper rates of pay for such leave under the FFCRA. Example: A salaried employee is paid $20,000 a year. Only Amanda’s hours worked during the week prior to Labour Day count towards the calculation of General Holiday Pay. Exempt vs. non-Exempt Employees in Holiday Pay. For monthly pay, divide the vacation accrual by 12. Here are the lists for Alberta and British Columbia. If an employee works an irregular schedule, the employer must calculate an estimate by averaging the number of hours an employee was, Below are two examples, adapted from examples provided by the DOL in Answer No. If you assign vacation time in small chunks on each pay period, you will need to divide the number of hours each employee receives in vacation time by the number of pay periods in a year. Click on the binoculars to the left of Pay types and select Stat Pay. Have worked or earned wages (like paid vacation days or another statutory holiday) on 15 of the 30 days before a statutory holiday; Some people think employees only need to work the day before and the day after to qualify for statutory holiday pay. Get the latest news, advice and business success stories to grow and empower your small business. She worked all five days in the week before Labour Day, with the same schedule of hours as during March. If, for example, an employer customarily tracks hours worked in tenth-of-an-hour increments and rounds up to the nearest tenth-of-an-hour, then it must also round up to the nearest tenth-of-an-hour when calculating FFCRA leave. What if an employee does not have a normal work schedule? If your employees accrue vacation time annually, they receive their entire allotment for the year at a given time. Small businesses aren't required to offer paid vacation to employees, but this perk can help you attract better employees and keep your current workers happier. 80 of its. Below are two examples, adapted from examples provided by the DOL in Answer No. Josh works at a retail store that is usually closed Mondays, and earns $17.50/hr. Your human resources department will then subtract from this vacation bank as it's drawn on throughout the course of the year. She is not eligible for Statutory Holiday Pay in BC. In our April 23, 2020 Update for Employers on Families First Coronavirus Response Act Regulations, we provided an overview of the U.S. Department of Labor (DOL) regulations interpreting and enforcing the Families First Coronavirus Response Act (FFCRA). George worked the five weeks before Labour Day, which is 35 days. What kinds of compensation are included to determine an employee’s regular rate? The pay limitations are dependent on an employee’s COVID-19 qualifying reasons for leave. Examples of a statutory (or just ‘stat’) holiday are New Year’s Day, Canada Day, Labour Day, and Christmas. In total, Adam was scheduled to work 1,200 hours during this 6-month period. Therefore, because Adam works more than the statutory maximum of 80 hours, the amount of EPSL he can take is capped at 80 hours. The second employee, Barb, is a part-time employee who also has an irregular schedule and takes EFML beginning on April 13, 2020. Under the FFCRA, for each hour of EPSL or EFML taken, an employee must be paid an amount that is equal to some or all of his/her “average regular rate.” Calculating what constitutes an employee’s average regular rate is a multi-step process that can be quite complex depending on an employee’s pay structure. What is an employee’s rate of pay for leave taken under the FFCRA? How do I calculate an employee’s average regular rate under the FFCRA? Remuneration excluded from an employee’s regular rate includes: sums paid as gifts; payments for periods when no work is performed (including paid time off) or expense reimbursements; sums paid in recognition of services performed if they are paid at the discretion of employer, are made pursuant to bona fide profit-sharing plan or the like, or are talent fees; irrevocable contributions by employer to bona fide retirement or insurance plans; certain extra compensation based on premium rates; and value from certain stock grants, rights, or options. With this 5 days of work, plus the 25 days worked back in March, Amanda reaches (barely!) His hourly rate was $25. By Meghan C. Cooper, Daniel R. Williams on May 5, 2020. An employee rightfully receives pay for a day when he or she is unable to work because their employer is closed due to a statutory holiday. and Thu. There are local variances province to province. Can Small Business Saturday Beat Black Friday? The first employee, Adam, is a full-time employee with an irregular work schedule who takes EPSL beginning on April 13, 2020. Total earnings = 136 hours x $17.50/hour + 4% vacation pay, General Holiday Pay = 5% x $2,475.20 = $123.76, Total earnings in prior 30 days = 146 hours x $17.50/hour + vacation pay, Statutory Holiday Pay = $2,607.20 ÷ 20 days worked = $130.36. An employee’s regular rate, in general terms, is calculated by using all non-overtime remuneration paid to an employee for hours worked, except for certain statutory exclusions. Labour Day is a Monday, which is a day George does not usually work. Employees receive statutory holiday pay if they: Have been employed for 30 calendar days; and. The number of hours per workday is computed by dividing 1,200 by 130 workdays, which results in 9.2 hours per workday. The first employee, Adam, is a full-time employee with an irregular schedule beginning his EFML on April 13, 2020. First, you must determine how many days employees are scheduled to work in a year. If you provide 80 hours of paid vacation time each year, the calculations look like this: If your employees work the same number of hours every day, you may set your vacation accrual to happen daily.