Important disclaimer: This information is not individual tax advice. All information provided by PEO Canada is for educational purposes only. For any advising matters regarding your province of employment and/or personal tax situation, please consult a qualified professional. You may have stumbled upon the term “province of employment” when starting a new job, filling out your TD1 forms, or filing your taxes, but what does it actually mean? There are likely many things you don’t know about province of employment. Perhaps there are even more things you don’t know that you don’t know! Whether you’re a remote worker, someone who works outside of your home province, or just...

You have probably heard the term “taxable benefits” floating around, but have you ever wondered what it would actually mean to anyone that is not familiar with the tax and benefit space? Let’s explain taxable benefits in a very simple way: explaining them to a 10-year-old. A Simple Explanation of Taxable Benefits “Imagine you get an allowance for doing chores. In this example, we will say you get $10 each week. You get to keep all of that money because it’s what you earned. Then let’s say one week your parents give you an extra $5 because you did an extra good job or helped out more than...

As the name suggests, Variable Pay can fall into a number of different categories. Payments are related to employee performance over a given period of time, usually in addition to their fixed wage or salary. Dependent on the industry, you may come across commission-only positions as well. Types of variable pay will fall into one of two categories: Payments related to volume-based or output-based productivity (e.g., tips and commissions, per kilometer rates, production unit volumes); Or Performance-based or incentive program amounts – generally related to performance management programs. Fixed Pay vs. Variable Pay Fixed Pay amounts are constant and seldom vary between pay cycles. This is assigned to...

Employee benefits can sometimes resemble a puzzle, with many terms and policies to navigate. Two of the most fundamental yet frequently asked components are Vacation Time and Vacation Pay. We are going to discover how these benefits work, allowing you to make the most of your well-deserved time off! Vacation Pay - Vacation Pay is the money you would receive while on vacation. Essentially, it is your financial security during your time off. This compensation typically comes from a portion of your regular salary or wage. The primary purpose of vacation pay is to enable you to enjoy your time away, acting as a source of income during...

In the dynamic landscape of employee compensation and motivation, two key contributors emerge: commissions and bonuses. We will explore the distinctions between the two, analyzing their purposes, structures and when and why they come into play. Whether you are an employee, manager or simply curious about the world of incentives, this exploration will help you understand how these strategies shape the workplace. Commission: Often recognized as a performance-driven compensation, it is a dynamic, results-oriented system. Think of commissions as a direct reward for your sales efforts. The more you sell, the higher opportunity you have to earn. They’re typically a percentage of the sales value and can be...

No one wants to fall victim to fraudulent letters or scams and with today’s technologies, these cons can arrive in a number of ways, whether that be through direct mail or email. These letters sound convincing as they can impersonate an attorney, financial institution, or government agency. It is best to be cautious, especially when receiving unexpected communication, and learn how to detect warning signs. It is always a good practice to take a second look at an official letter or email and never click on the link provided or respond to a phone number included, even if your initial take is that the communication is real. If...

As summer is now in full swing, workers will now want to enjoy the warm weather. There are several factors one must plan when they are getting ready for their summer vacations. One of these facets is informing your employer of your upcoming time away from work and discussing how you wish to apply your vacation pay during this period. Employees in Canada receive certain amount of agreed upon paid time off each 12-month period. While this vacation can vary for each worker, it is legislated that every employee is entitled to vacation time off and at minimum two weeks of vacation pay. These two weeks of pay...

When an employee falls sick they have the comfort of knowing they can take the time to recover their health by utilizing sick days. Some provinces have even gone so far as to mandate a set amount of employer-paid sick days, but issues can arise when it comes to tracking this time off. The government of British Columbia (B.C.) recently faced this problem when they introduced new legislation at the beginning of the year that sought to protect worker’s rights and simplify the administrative load for the employer. Two issues have arisen since employer-paid sick leave was introduced for signing into law. The first is in regard to...

As we roll into February, many Canadians are starting to think about putting down their snow shovels and picking up their calculators. That’s right, it’s almost tax season! It might not be the most exciting thing in the world, but we can all agree that its an important and necessary part of the year – and a great excuse to stay inside on the colder nights to come!    The deadline to file your 2021 taxes with the Canada Revenue Agency is technically April 30, however you will have until May 2 this year as April 30 falls on a Saturday. If you or your spouse/common-law partner are...

Many companies provide an automobile allowance to their employees if they are required to use their own vehicle for business purposes. Since each company has different requirements from their employees (for example, the amount of driving they need to do for the role), the question that is often asked of a payroll specialist is “how much should I be giving my employee for car allowance?” The Canada Revenue Agency (CRA) has guides as to what they consider “reasonable”. The CRA says that ALL of the following must apply in order for a car allowance to be considered reasonable, and thus a non-taxable allowance: The allowance is based only...