How to Calculate Stat Holiday Pay 2018 Ontario
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Calculating statutory holiday pay in Ontario for 2018 requires understanding the specific regulations and applying them correctly to your payroll. This guide provides a step-by-step explanation of the calculation process, along with a calculator to simplify the process.
What is Stat Holiday Pay?
Statutory holiday pay refers to the additional compensation employees receive for working on designated holidays. In Ontario, employees are entitled to paid time off on certain statutory holidays, and employers must provide this pay based on their regular wages.
The Ontario Labour Relations Act outlines the statutory holidays, which include New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving Day, and Christmas Day.
How to Calculate Stat Holiday Pay
The calculation of statutory holiday pay involves determining the employee's regular hourly wage and applying it to the standard work hours for the holiday. Here's the step-by-step process:
- Determine the employee's regular hourly wage.
- Identify the standard work hours for the holiday (typically 8 hours).
- Multiply the regular hourly wage by the standard work hours to calculate the holiday pay.
Formula
Stat Holiday Pay = Regular Hourly Wage × Standard Work Hours
Where Standard Work Hours is typically 8 hours.
For example, if an employee's regular hourly wage is $20 and the standard work hours are 8, the statutory holiday pay would be $160.
Example Calculation
Let's walk through an example to illustrate how to calculate statutory holiday pay in Ontario for 2018.
Scenario
- Employee's regular hourly wage: $22.50
- Standard work hours for the holiday: 8 hours
Calculation
Stat Holiday Pay = $22.50 × 8 hours = $180.00
Therefore, the employee would receive $180.00 in statutory holiday pay for the holiday.
Important Notes
Statutory holiday pay must be calculated based on the employee's regular hourly wage, not including overtime pay or other bonuses. Employers must ensure they comply with all Ontario labour laws regarding statutory holidays.
For 2018, the statutory holidays in Ontario were:
- New Year's Day - January 1
- Family Day - February 19
- Good Friday - March 30
- Victoria Day - May 21
- Canada Day - July 1
- Civic Holiday - August 6
- Labour Day - September 3
- Thanksgiving Day - October 8
- Christmas Day - December 25
Frequently Asked Questions
What is the difference between regular pay and statutory holiday pay?
Regular pay is the standard compensation an employee receives for their regular work hours, while statutory holiday pay is the additional compensation for working on designated holidays.
Do all employees receive statutory holiday pay?
Yes, all employees who work on a statutory holiday are entitled to receive statutory holiday pay based on their regular hourly wage.
Is statutory holiday pay taxable?
Yes, statutory holiday pay is generally considered taxable income and must be reported on the employee's tax return.
Can employers choose not to pay statutory holiday pay?
No, employers are legally required to pay statutory holiday pay to employees who work on designated holidays.