Calculating Statutory/Public Holiday Pay

A payroll report template is supplied to calculate public holiday pay to which an employee is entitled for Ontario Canada.

Who is Entitled

Salaried employees i.e. $500.00 per week are also subject to public holiday pay. However if a salaried employee has the day off and receives the same pay $500.00 per week for 52 weeks of the year then the public holiday pay is included. No calculation is required.

Most employee's paid on an hourly basis (not salary) i.e. $10.00 per hour are entitled to public holiday pay.

Most employees who qualify are entitled to take these days off work and be paid public holiday pay. Alternatively, they can agree in writing to work on the holiday and they will be paid:

• public holiday pay plus premium pay for the hours worked on the public holiday;

  or

• their regular rate for hours worked on the holiday, plus they will receive another day off (called a "substitute" holiday) with public holiday pay. If the employee has earned a substitute day off with public holiday pay, the public holiday pay calculation is done with respect to the four work weeks before the work week in which the substitute day off falls.

The Ontario Formula

The amount of public holiday pay to which an employee is entitled is all of the regular wages earned by the employee in the four work weeks before the work week with the public holiday plus all of the vacation pay payable to the employee with respect to the four work weeks before the work week with the public holiday, divided by 20. For more information please see www.ontario.ca/public holidays for specific details.

Regular wages does not include any overtime or premium pay payable to an employee.

The template

The template Payroll_CA_Statutory_Holiday_Calculation_ON.xls file can be found in nv2.dat\object\newviews. (The nv2.dat folder is located in the NewViews installation folder.)

The template uses the same "mapping" from the The Payroll Report Codes Window as the other payroll reports.

Employee Payroll Accounts

One method of handling Statutory Pay is to add two additional payroll earning accounts to an employee's account setup.

Employee Account		Pay Rate
STAT	Hours Earned	regular hourly rate
OSTAT	Hours Worked	premium hourly rate (x 1.5)

The STAT earnings account is set to the employees regular hourly rate. All other paycode settings are the same as a regular hourly earnings account. This account is only used to track the entitled/earned statutory pay.

The OSTAT earnings account is set to the employees premium/overtime hourly rate. All other paycode settings are the same as an overtime hourly earnings account. This account is only used to track the worked hours on the statutory holiday.

Example Calculations

Some example calculations for employees at a rate of $10.00 per hour on the Canada Day holiday:

Employee	Work prior 4 weeks	on Canada Day	STAT account	OSTAT account	Entitlement
A	worked 160 hrs	day off	calculated hrs, 160/20 = 8	0 hours	8 x 10 = $80.00
B	worked 125 hrs	day off	calculated hrs, 125/20 = 6.25	0 hrs	6.25 x 10 = $62.50
C	worked 120 hrs	worked 7 hrs	calculated hrs, 120/20 = 6	7 hrs	6 x 10 + 7 x 15 = $165.00

It can become quite tedious to calculate the above with many employees working different shifts and hours at various pay rates in the four pay weeks leading up to a public holiday.

Run the Report before Processing the holiday Payrun

The Payroll_CA_Statutory_Holiday_Calculation_ON.xls template has been created to assist in the calculation of the above. Before processing the payrun that includes the Public holiday;

1. Set a block of employees on a payroll

   You may select All employees from the Canada Payroll.

2. Set the payroll report date range to 4 weeks

   Select the date range that includes the last 4 payroll weeks prior to the public holiday. i.e. for Canada Day, this may not be the immediate 28 days prior to July 1. For more information please see www.ontario.ca/public holidays for specific details.

3. Detail level - Summary

   It is best to have a single line per employee on the report.

4. Template - Select Payroll_CA_Statutory_Holiday_Calculation_ON.xls

   This template will calculate the entitlement hours for each employee.

5. Print the report

   The printed excel spreadsheet has a CALC column that lists the Entitlement hours.

6. From the printed spreadsheet transfer the CALC hours to the paylist.

   The printed spreadsheet has entitlement hours for each employee. Enter the CALC hours in the STAT column of the paylist.

7. For employees that worked on the Public holiday enter the worked hours.

   The actual worked hours should be entered from the employee time cards to the OSTAT column of the paylist.

8. Process the Canada Day payroll

   After all the STAT and OSTAT hours have been entered with all other worked hours process the payrun.

The template uses ITEM_1 for regular hours, ITEM_2 for Statutory Earned (entitlement) hours, ITEM_3 for Statutory Worked hours, ITEM_4 for Sick time and ITEM_5 for Other hours worked. You are free to modify the template to fit your custom payroll requirements.

The excel template uses two formulas. In column "O" is a formula summing all regular hours. In column "P" is the formula that divides the total hours by 20.

Other Provinces and Territories

Saskatchewan also uses a similar formula to Ontario, the four work weeks immediately preceding the holiday plus all of the vacation pay divided by 20.

Other provinces and territories calculate the statutory holiday pay with a different formula. Many jurisdictions require an employee to work 15 days of the prior 30 days to qualify. The employees’ wages for those 15 days worked are averaged. Then a premium rate is applied. You are free to modify the above template to fit your custom payroll requirements.

Paid Holiday Dates

Please note that most employees work on a Monday through Friday schedule. For these employees, when a public holiday falls on a non-working day (Saturday or Sunday), most employers grant the employee a holiday with pay on the next working day immediately preceding or following the holiday, providing that the holiday is a provincial or state requirement.