The rational is to determine the average day of work for the past 4 weeks of work. If you are paying your employees on a bi-weekly basis, you can obtain the last 2 gross pays, then divide this number by 20 days (5 each week * 4 weeks). This will give you an average day of work. Multiply this number time the number of days and there you have it.
so the formula for your Excel file is:
=(Gross bi-weekly1+Gross Bi-weekly 2)/20*day
Don’t forget to add the 4% vacation pay, calculate the EI, CPP, and taxes.
So once you determine the stats pay you can add it to a new line on the paycheque. There are no special treatments for part-time employees for example a part time employee may say I lost one of day of work since the stats falls on the day that I work so the part time employee may ask for more money. Again the rational is how much did you work on the last 2 pays. If it was 2 hours, determine the average and pay it.
One more important information is the employee receives this money if he or she was on the payroll schedule. For example, the employee had worked for the 2 pay periods however, she is off for the week where payroll cheques is being issued. Although, she is entitled to stats pay, she will receive her cheque when she is on payroll schedule so it could be the next pay period. Unfortunately, I haven’t seen the off the shelves accounting software doing this, either calculating the stats or determining when to issue the cheque for stats holiday. This would be extremely helpful for people who are in charge of running the payroll. I personally use and excel spreadsheet to calculate the exact amount however, if you are paying a lot of employees you should find a better and more effective method to keep track of this. If you are managing few number of employees perhaps keeping the numbers on excel is not a bad idea. Consequently, formulas can be built into excel to calculate the average of each pay period (we need the last 2) and also calculate the average of the last 2 period and determine the average pay per one day and hence the amount which is owed to the employee. One more important issue to note is that some employers don’t even bother paying the employees. I have seen many cases where the employees successfully obtained their stats pay by going through the Labour Board. In addition, the employer was handed a fine for failing to pay this amount. Not an ideal situation, labour Board also places these fines and punishments on their website, again a very bad publicity for the employer. I have seen some reputable businesses names on the list of violators and I wasn’t impressed to see that is to say the least.
So let’s make this part of our obligations.
For more information please contact us at 613-266-7013 or just drop us an email.
You can also visit Ontario Labour Board website (http://www.labour.gov.on.ca/english/es/tools/php_calc.php)