Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
The minimum hourly wage is 13.85 CAD, however, this is set to change to 14.60 CAD on June 1, 2020.
In British Columbia, employees are paid twice a month, generally mid-month and at the end of the month. The pay period cannot be more than 16 days.
A full-time work week is 40 hours, 5 days a week.
For overtime during a regular workday, overtime is paid at a rate of 150% from the 8th-12th hour of work. From the 12 hour and on, overtime is paid at a rate of 200%.
The employee and employer both contribute 5.25% of the gross salary to pension. This is capped at 2,898.00 CAD for each party.
In Canada, there is a universal healthcare system that is funded through tax revenues.
The employee contributes 1.58% and the employer contributes 2.21% of the gross salary to employment insurance. The maximum annual insurable earnings is 54,200 CAD which equals a cap of 856.36 CAD for the employee and 1,198.90 CAD for the employer.
Vacation pay is at least 4% of wages paid from the previous year for the first 5 years of employment and 6% of wages from the 5th year and on.
In general, vacation pay should be paid out to the employee at least 7 days before they are set to take paid leave or if agreed upon in writing, this sum can be paid out monthly.
There are 10 public holidays in British Columbia.
A woman is entitled to 17 weeks of unpaid maternity leave. The leave must start before the birth of the child and can be taken as early as 13 weeks before the expected due date. After the birth, the woman must take at least 6 weeks of leave
If they would like to come back to work at an earlier date, they must get permission from their doctor.
If the woman is unable to return to work after the mandatory 6 weeks, the leave can be extended for an addition 6 weeks.
Paternity leave in British Columbia falls under parental leave.
Employees are able to take up to 62 weeks of unpaid parental leave until the child reaches the age of 78 weeks.
For a woman, they are able to extend their maternity leave with parental leave for a total of 78 weeks (17 weeks of maternity leave + 61 weeks of parental leave).
This leave must begin right after the maternity leave ends unless the employee and employer mutually agree on a different date.
If the child is in need of extra care, parental leave can also be extended for an additional 5 weeks.
In order for maternity or parental leave to be taken, the employee must notify their employer at least 4 weeks in advance.
Bereavement Leave: Employees are able to take 3 days of unpaid leave for the death of an immediate family member. This leave can be spread out, the employee is not obligated to take the leave consecutively.
Work related injury leave: In British Columbia, an employer must report all serious injuries and fatalities to WorkSafeBC immediately after an incident.
In addition, the employer is required to report any of the following within 3 days of an incident:
- The employer loses consciousness after a work-related injury
- The employee is transported to place to receive medial treatment (i.e. hospital, clinic)
- The employee receives medical attention for the injury
- The employee is unable to return due to the injury
- The injury resulted in a medical device breaking (i.e. an artificial limb, glasses, dentures, hearing aid, etc.)
- If the employee requests that a report be submitted by the employer.
WorkSafeBC will determine a wage rate that the employee will be entitled to for the first 10 weeks of leave. After this period, the fund will either terminate the benefit or will award the employee permanent disability.
There are two ways an employer can terminate an employment contract:
- Providing written notice to the employee
- Termination due to just cause
It is important to note that the final payment to the employee must be made:
- Within 48 hours after the last day when the employer ends the employment agreement
- Within 6 days after the last day when the employee ends the employment agreement
Employees can quit without notice. However, if the employee chooses to give notice, the employer can choose to terminate the employee sooner.
Severance in British Columbia is called “compensation for length of service” and varies based on the amount of time the employee has been employed:
- At least 3 months of employment- 1 week
- 3months to 1 year- two weeks’ pay
1 year- 3 or more years- 3 weeks’ pay and on week of pay for each additional year after.
5% federal GST and a 7% provisional PST