Overview

Capital
Toronto
Currency
Canadian Dollar
Date Format
yyyy-mm-dd

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Taxes

Employer
1.6% - Employment Insurance
5.1% - Pension Fund
Employee
1.62% - Employment Insurance
5.1% - Pension Fund
5.15% - up to $43,906
9.15% - 43,906 - 87,813
11.16% - 87,813 - 150,000
12.16% - 150,000 - 220,000
13.16% - 220,000 and up
15% - up to $47,630
20.5% - $47,630 up-to $95,259
26% - $95,259 up-to $147,667
29% - $147,667 up-to $210,371
33% - $210,371

Minimum Wage

General
General minimum wage is $14.00 CAD hourly

Working Hours

General
Full time work is considered 48 hours weekly and 8 hours daily.
Overtime
Overtime is allowed up to 60 hours weekly which must be agreed to in writing in advance. Employers are required to provide at least 11 consecutive hours of rest and 24 consecutive non working hours weekly. Overtiem pay is paid for every hour after 44 hours weekly at a rate of at least 1.5 times regular wage rate.
Exemptions or Special Rules
In Ontario most employees are covered by the Employment Standard Act which provides minimum rights, responsibilities and standards for employees and employers in most workplaces.
These standards include: hours worked & overtime ,minimum wage, employment termination, holidays, leave, severance pay, vacation, tips & gratuity.
However, certain industries and jobs are not completely covered by the Employment Standard act. These employees who are not covered by all parts are known as “exemptions”. Employees can also be covered by special rules that change how the act applies to them.
Before hiring an employee it’s important to know if their job places them under the full Employment standard act, exemptions, or special rule changes. By not properly determining your employee’s status and classifying them correctly, can lead to regulation issues and payroll complications. For instance, a main payroll issue that can arise is overtime pay.The ministry of labor in Ontario requires that employees receive overtime unless their job description fits the criteria as exempt from overtime provisions. So if you believed your employee was exempt, but is in fact not, you would then be obligated to pay them 1.5 times the regular rate or 1.5 hours of vacation for each hour of work exceeding the weekly 44 hours in addition to their usual pay. They will also be required to fill in time-sheets for attendance by the hour and paid bi-weekly.
Other employment standards differ depending on job or industry, so in order to avoid complications see the full list of jobs that have exemptions and special rules applied to them. As well as industries and jobs that are not covered by the Employment Standards Act.

VAT

General
13% standard rate.

Payment

Payroll Frequency
Salaries are paid bi weekly, bi-monthly or monthly. The paydays are decided between the employee and employer.

Mandatory Benefits

Pension Fund
The Canada Pension Plan (CPP) is 10.2% split equally between employee and your employer. It is a 9.9% for the base, or original CPP, and 0.3% for the CPP enhancement which began to be phased in on January 1, 2019.

Termination

Termination Process
An employer is only required to provide a written notice to a worker who has been employed over 3 months. Notice period depends on length of employment: 3 months – 1 year = 1-week notice 1 – 3 years = 2 weeks’ notice 3 – 4 years = 3 weeks’ notice 4 – 5 years = 4 weeks’ notice 5 – 6 years = 5 weeks’ notice 6 – 7 years = 6 weeks’ notice 7 – 8 years = 7 weeks’ notice 8 or more years = 8 weeks’ notice
Advance Notice
Employee must give a minimum of two week written notice.
Severance Pay
Severance pay is the employees regular work week wage multiplied by the sum of the number of completed years of employment and the number of completed months, divided by 12 for a year that is not completed. A max of 26 weeks severance pay is given.
Termination Pay
If worker does not receive adequate notice of their termination, they are to receive pay in lie.