| Help explain Vacation pay. - Click HERE for Original Thread |
| little_one_der |
Can someone explain something to me regarding Vacation Pay. I've browsed the Canada Labour Code and i just need a little bit of clarification on the subject.
So the CLC says it is 4% of regular wages.
Last year at my workplace, we had Vac Pay divvied out on a monthly basis. So using random numbers, lets say you grossed 2345.00 during the month of Oct, you would also receive 93.80 (4%) as Vac Pay on your pay stub. That's fine, and works and whatnot.
We had a meeting and opted to have Vac Pay banked, starting in 2007, so that we can take it when we take our Vac time.
Fast forward to now. I took the first week off in Aug., came back, and requested 'one week' of Vac Pay. And well, it seems low. It's 2% of regular wages from Jan to July. How come it's not 4%?
:kitty: |
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| Lococoin |
| was that 2% calculation using your gross monthly wage as well as gross holiday pay? |
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| SilverNeonRacer |
most times you can take vacation days off.. or vacation pay.. not both.
It sounds like you accrued(sp?) 1.5 weeks worth of vacation time, you get 1 week vacation and they paid out the .5 or something like that. |
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| little_one_der |
I opted out of taking any Vac hours for the week I was off, so not including my Vac Pay cheque, this month should be a week short of hours.
And I'm 98% sure I get two weeks, as I've been working with the company, including a merger, for the past 30 months. |
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| TrevorK |
quote:
Originally posted by little_one_der
Fast forward to now. I took the first week off in Aug., came back, and requested 'one week' of Vac Pay. And well, it seems low. It's 2% of regular wages from Jan to July. How come it's not 4%?
:kitty:
One week of vacation pay is equal to 2% of your wages throughout the year.
You get 4% vacation pay to cover two weeks of holidays. Therefore, if you only take one week of holidays you will get 2% of that amount.
You are correct in that they aren't calculating it properly. It should be 2% of your regular wages from Jan 01 -> Dec 31. This is an issue to bring forward with them. |
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| little_one_der |
Ok. If I concentrate, I can wrap my head around that. It was odd that it wasn't equal to a full week at regular time which I've been told is what it should amount to.
So does that mean, if i don't take any more time off this year, and pay out the remaining Vac Pay at the end of the year it should be more than the cheque I just received?
(Really want a turbo kit christmas present :fingersx: )
Oh, and here's another question. I was informed that the income is taxed differently when it's a separate Vac Pay stub vs. adding to the final pay stub at month end. True? |
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| TrevorK |
quote:
Originally posted by little_one_der
Ok. If I concentrate, I can wrap my head around that. It was odd that it wasn't equal to a full week at regular time which I've been told is what it should amount to.
So does that mean, if i don't take any more time off this year, and pay out the remaining Vac Pay at the end of the year it should be more than the cheque I just received?
If you received a cheque for the amount of 2% of your salary from Jan 01-July 01 it would be equivalent to one quarter of your total vacation pay (half your vacation pay over a 6 month period is what you received. Therefore you should receive the other half from that 6 month period plus the entire amount from the 6 month period after).
quote:
Oh, and here's another question. I was informed that the income is taxed differently when it's a separate Vac Pay stub vs. adding to the final pay stub at month end. True?
I would assume so - if your vacation pay is tacked on top of your normal pay you will pay tax because it will assume that:
Current Income = Your normal salary + vacation pay
And it will tax you as if you made that amount every paycheque.
It all works out in the end (at tax time) however receiving a seperate cheque with vacation pay may lower the taxes paid (at that time) in comparison to receiving it on the same cheque as your salary. |
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| little_one_der |
| Holy cow Trevor. I'm envious of your knowledge! Thank you soo much. :bowdown: :bowdown: :bowdown: |
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