Canadian Payroll Reporter

5 Canadian HR Reporter, a Thomson Reuters business 2018 Reporting overtime on a Record of Employment QUESTION: How do I calculate and report overtime hours when completing a Record of Employment (ROE)? ANSWER: Report overtime hours in block 15A on an ROE. The way in which you calcu- late overtime hours will depend on whether the employee was paid for the hours or took them as paid leave. If the employer paid the employee for the overtime hours, calculate the hours to report on the basis of one hour of overtime work equals one hour of insurable employment, regardless of the rate of overtime pay. For example, if an employee works six hours of overtime and the employer pays the employee 1.5 times his regular rate for the hours worked, the number of insurable hours to report would be six. On the ROE, the employer must allocate the hours to the pay period in which it paid them. If instead of being paid overtime pay an employee takes paid time off work, the insur- able hours are the number of hours of leave the employee takes. For example, if an em- ployee works five hours of overtime (at 1.5 times his or her regular rate) and later uses it to take 7.5 hours off, the number of insurable hours the employer would report on an ROE would be 7.5 insurable hours. On the ROE, the employer must allocate the hours to the pay period for which it paid them. If an employee banks overtime hours and, without taking time off, is later paid the out- standing amounts on or after termination, the number of insurable hours to report would be calculated on the basis of one hour of over- time work equals one hour of insurable em- ployment. On the ROE, the employer must allocate the hours to the pay period in which the employee worked the overtime. Employers do not have to report overtime hours worked more than 52 weeks before they issued the ROE. For overtime pay paid on or after termination, allocate the earnings to the last pay period of regular pay. CPR | May 2018 ASK AN EXPERT Annie Chong MANAGER OF CARSWELL'S PAYROLL CONSULTING GROUP annie.chong@thomsonsreuters.com | (416) 298-5085 Jurisdiction Deadline for paying overtime pay Canada Labour Code No later than 30 days from the date the employee earned it Alberta Within 10 consecutive days after the end of the pay period in which the employee earned it British Columbia Within eight days of the end of each pay period in which the employee earned it Manitoba Within 10 working days of the end of each pay period in which the employee earned it New Brunswick On each payday, pay all wages and commissions owing up to seven days before payday Newfoundland and Labrador Within seven days of the end of each pay period in which the employee earned it Northwest Territories Within 10 days of the end of each pay period in which the employee earned it Nova Scotia Within five working days of the end of each pay period in which the employee earned it Nunavut Within 10 days of the end of each pay period in which the employee earned it Ontario No later than the regularly established payday for the pay period in which the employee earned it Prince Edward Island On each payday, pay all wages earned up to and including a day that is not more than five working days prior to the actual payday Quebec On each payday; however, overtime earned in the week before the employer pays regular wages may be paid with the next regular payday Saskatchewan On each payday, employers must pay employees the total wages to which they are entitled up to no more than six days before the payday Yukon Within 10 days of the end of each pay period ANSWER: Overtime pay is governed by labour standards laws in each province and territory and by the Canada Labour Code for federally regulated workplaces. The requirements, therefore, vary de- pending on the jurisdiction. In general, employers must pay employ- ees for overtime in the pay period in which they earn it. Exceptions may apply when an employee banks overtime hours and when there is a termination of employment. When paying employees for overtime pay earned in a pay period, employers must ensure that they comply with the following labour standards deadlines for paying wages: Deadlines for paying overtime QUESTION: Are employers required to pay employees for overtime in the pay period in which they earn it, or can they pay it later? ANSWER: No. The amount of money that an employer allocates to a deferred profit-sharing plan (DPSP) on behalf of an employee is not sub- ject to Canada/Quebec Pension Plan contri- butions, employment insurance premiums, Quebec Parental Insurance Plan premiums, or income tax deductions. However, the employer must report the contribution as a pension adjustment in box 52 on the employee's T4. The amount contributed will reduce the amount the em- ployee can contribute to his or her registered retirement savings plans. Note: When the DPSP benefit is actually paid to the employee, it will be subject to income tax deductions, using the lump sum tax rates. Source deductions on DPSP contributions QUESTION: Are employers required to take source deductions from contributions to employees' deferred profit-sharing plans (DPSPs)? Note: Different payment rules may apply if a labour standards board allows it or if there is a collective agreement in place. Different rules may also apply if the employee banks overtime hours or if the employer is paying out the overtime pay when there is a termination of employment.

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