How to Calculate Stat Holiday Pay Ontario 2019

Calculating statutory holiday pay in Ontario for 2019 requires understanding the legal requirements and applying the correct formulas. This guide provides a step-by-step explanation of how to calculate stat holiday pay for employees in Ontario during the 2019 tax year.

What is Statutory Holiday Pay?

Statutory holiday pay refers to the additional compensation employees receive for working on designated holidays. In Ontario, employers must pay employees for the following statutory holidays:

New Year's Day
Family Day (third Monday in February)
Good Friday (Friday before Easter Sunday)
Victoria Day (Monday before May 25)
Canada Day (July 1)
Labour Day (first Monday in September)
Thanksgiving Day (second Monday in October)
Christmas Day (December 25)
Boxing Day (December 26)

Employees who work on these holidays are entitled to receive their regular pay plus an additional amount equal to one day's pay for each holiday they work.

How to Calculate Stat Holiday Pay

The calculation for statutory holiday pay involves determining the employee's regular pay rate and applying it to the holiday pay formula. Here's the step-by-step process:

Determine the employee's regular hourly or daily pay rate.
Identify the number of hours the employee worked on the holiday.
Calculate the regular pay for the holiday by multiplying the regular pay rate by the number of hours worked.
Add the holiday pay premium to the regular pay. The premium is equal to one day's pay.

Stat Holiday Pay = (Regular Pay Rate × Hours Worked) + (Regular Pay Rate × 8)

Where:

Regular Pay Rate = Employee's normal hourly or daily pay rate
Hours Worked = Number of hours worked on the holiday
8 = Standard work day (assuming 8 hours per day)

For salaried employees, the calculation is typically based on a daily rate calculated by dividing the annual salary by 260 (the number of working days in a year).

Example Calculation

Let's walk through an example to illustrate how to calculate stat holiday pay for an employee in Ontario during 2019.

Scenario

Employee name: John Smith
Regular hourly pay rate: $20/hour
Holiday worked: Victoria Day (Monday, May 20, 2019)
Hours worked on Victoria Day: 8 hours

Calculation Steps

Calculate regular pay: $20/hour × 8 hours = $160
Calculate holiday pay premium: $20/hour × 8 hours = $160
Total stat holiday pay: $160 (regular pay) + $160 (premium) = $320

Therefore, John Smith would receive $320 in stat holiday pay for working on Victoria Day.

Note: The actual calculation may vary slightly depending on the employee's contract terms and the specific provisions of the Employment Standards Act, 2000.

Important Notes

When calculating stat holiday pay in Ontario for 2019, keep these important points in mind:

The calculation assumes a standard 8-hour workday. If the employee works a different number of hours, adjust the calculation accordingly.
For salaried employees, the daily rate is typically calculated by dividing the annual salary by 260.
Employers must provide employees with a written statement of the holiday pay entitlement.
The calculation does not include overtime pay, which is calculated separately.
Stat holiday pay is subject to income tax and other deductions as required by law.

FAQ

What is the difference between regular pay and stat holiday pay?: Regular pay is the employee's normal compensation for working on a regular day. Stat holiday pay is the additional compensation for working on a statutory holiday.
Do I need to calculate stat holiday pay for every employee?: Yes, employers must calculate and pay stat holiday pay to all employees who work on statutory holidays, regardless of their position or tenure.
Can employers refuse to pay stat holiday pay?: No, employers are legally required to pay stat holiday pay to employees who work on statutory holidays, as per the Employment Standards Act, 2000.
Is stat holiday pay included in the employee's annual salary?: Yes, stat holiday pay is typically included in the employee's annual salary for tax and benefit purposes, unless otherwise specified in the employment contract.
What happens if an employee doesn't work on a statutory holiday?: Employees are not entitled to stat holiday pay if they do not work on a statutory holiday. However, they may be entitled to other benefits or time off in lieu of the holiday pay.