Stub Period Calculator Ontario

A stub period in Ontario refers to the partial pay period at the beginning or end of an employment relationship. This calculator helps you determine how much you'll earn during this period based on your hourly wage and the number of hours worked.

What is a Stub Period?

A stub period occurs when an employee starts or leaves employment during a pay period. For example, if you start work on the 15th of the month but get paid bi-weekly (every two weeks), your first paycheck will cover only the days from the 15th to the end of the pay period.

In Ontario, employers are required to pay employees for all hours worked, including during stub periods. The calculation involves determining the proportion of the pay period that was actually worked and applying that to the regular pay rate.

Note: Stub periods are common in Ontario for both new hires and employees who resign or are terminated during a pay period.

How to Calculate Stub Period Pay

The calculation involves these key steps:

Determine the total number of days in the pay period
Calculate the number of days worked during the stub period
Find the proportion of the pay period that was worked
Multiply the regular hourly wage by the number of hours worked
Apply the proportion to the regular pay to get the stub pay

Formula: Stub Pay = (Hours Worked / Total Hours in Pay Period) × (Hourly Wage × Hours Worked)

For example, if your regular pay period is 14 days (bi-weekly) and you worked 5 days during the stub period, the proportion would be 5/14.

Example Calculation

Let's say you earn $20/hour and worked 5 days during a 14-day pay period:

Total hours in pay period: 14 days × 8 hours/day = 112 hours
Hours worked: 5 days × 8 hours/day = 40 hours
Proportion: 40/112 = 0.357 (35.7%)
Stub pay: $20 × 40 = $800 × 0.357 = $285.60

Your stub pay would be $285.60 for this example.

Remember: This is a simplified example. Actual calculations may include overtime, bonuses, or other compensation factors.

Factors to Consider

When calculating stub periods in Ontario, consider these important factors:

Pay frequency: The calculation differs for weekly, bi-weekly, semi-monthly, and monthly pay periods
Overtime: If you worked overtime during the stub period, you'll need to calculate that separately
Holidays: Some employers may pay for holidays during stub periods
Vacation: Vacation pay may be prorated during stub periods
Taxes: Stub pay is typically subject to the same taxes as regular pay

For the most accurate calculation, consult your employment contract or speak with your HR department.

FAQ

How is stub pay calculated in Ontario?

Stub pay is calculated by determining the proportion of the pay period that was actually worked and applying that to your regular pay rate. The formula is: Stub Pay = (Hours Worked / Total Hours in Pay Period) × (Hourly Wage × Hours Worked).

Do I get paid for unused vacation during a stub period?

This depends on your employment contract. Some employers may pay for unused vacation during stub periods, while others may not. Check your contract or speak with HR for clarification.

Is stub pay subject to taxes?

Yes, stub pay is typically subject to the same taxes as regular pay in Ontario. Your employer should withhold the appropriate taxes from your payment.

What if I worked overtime during a stub period?

Overtime during a stub period should be calculated separately using your overtime rate. You'll need to add this to your regular stub pay calculation.

Can I get a stub pay if I'm a new hire?

Yes, new hires in Ontario are entitled to stub pay for the days they worked before their first regular payday. The calculation follows the same proportion method.