Why Payroll Technology Complements, Not Competes With, Professional Accounting Services In today’s fast-paced digital economy, Canadian businesses are increasingly investing in payroll software to streamline their administrative operations. While these tools offer automation, convenience, and accuracy, a persistent misconception arises: the idea that payroll software will render accountants obsolete. The truth is that payroll software and professional accountants are not rivals, but partners in the overall financial health of your company. Understanding Payroll Software’s Role Generally speaking, payroll software is designed to automate repetitive tasks such as calculating wages, handling deductions, issuing paystubs, and remitting payroll taxes. “Government remittances are always a hot topic when talking payroll compliance. Top...

A Brief Overview of the Ontario Employer Health Tax The Ontario Employer Health Tax (EHT) is a tax applied to Ontario employers on remuneration payments. The purpose of this tax is to assist with funding healthcare in Ontario. Employees pay their share of healthcare taxes via the personal income tax system. This article focuses on information and implications for employers. EHT applies to remuneration paid to employees who physically report to/are attached to the employer’s permanent establishment in Ontario, as well as employees who do not report to a permanent establishment but are paid via the employer’s Ontario permanent establishment[1]. Types of payments that qualify as remuneration and...

Every province and territory has their own rules regarding overtime and whether employees are exempt from receiving compensation for overtime.  Some situations are clear; others are complex. Provinces like Manitoba, for example, can be more complex. Certain Manitoban employees are exempt from overtime for “having substantial control over their hours of work, as well as earning more than twice the average industrial wage.”[1] Certain positions or jobs in certain sectors tend to be exempt from receiving overtime. For example, managers and supervisors are typically exempt based on their job duties. This, of course, is subjective and dependent on how an employer classifies their managerial positions. Referencing provincial/territorial Employment...

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...