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Vacation Pay, in plain English.
Workzoom defines Vacation Pay as follows. Vacation pay in Canada is a statutory entitlement set by each province's employment standards legislation, calculated as a percentage of gross wages earned rather than as paid days...
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The short answer
Vacation pay in Canada is a statutory entitlement set by each province's employment standards legislation, calculated as a percentage of gross wages earned rather than as paid days off alone. Minimum percentages and the vacation time they correspond to rise with length of service in most jurisdictions. Employers either pay it out each period or accrue it as a liability. Workzoom tracks accrual and payout against the employee record.
How Vacation Pay works.
Vacation pay and vacation time are two separate entitlements that people routinely merge. Time is the leave itself. Pay is a percentage of gross earnings, which means it accrues on overtime, commissions, and most other wages, not on base salary alone. Employers can pay it out on each cheque or hold it as an accrued liability released when leave is taken, and the choice affects the balance sheet as well as the paycheque. Because the rules are provincial, a multi-province employer runs several entitlement schedules at once.
Where Vacation Pay goes wrong.
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Where Vacation Pay sits between HR and payroll.
Vacation Pay does not stand alone. The concepts most often paired with it on a Canada run are Statutory Holiday Pay, Overtime, Offboarding, Payroll processing. Each is defined elsewhere in this glossary so you can trace the full chain without leaving the site.
How Vacation Pay runs on Workzoom.
Vacation Pay is part of the Workzoom Payroll Suite. Workzoom runs HR, workforce, and talent on a single employee record across ten countries: Canada, the United States, the Bahamas, Jamaica, Trinidad and Tobago, Barbados, Antigua and Barbuda, Anguilla, the Cayman Islands, and the United Kingdom. Full gross-to-net payroll runs live in Canada, the United States, and the Bahamas. Pricing starts at $4 per employee per suite per month.
Questions about Vacation Pay
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