2.8 Chapter Summary and Additional Readings and Resources

2.8.1 Chapter Summary

Several different types of laws impact payroll: case law that establishes factors for determining whether a worker is an employee or an independent contractor and legislation that creates obligations between employers and employees.

Employers must make mandatory deductions and contributions under the federal Income Tax Act, Employment Insurance Act, and the Canada Pension Plan. Employers also have to make contributions under provincial legislation to workers’ compensation agencies, and in some provinces, employers must pay employer health taxes.

Employer organizations must follow the employment regulations in the province or territory in which the organization operates, except specific industries that are federally regulated.

Employment standards set out the rights and obligations of employers and employees in a specific jurisdiction. These standards are usually written into legislation, such as the Alberta Employment Standards Code and the Ontario Employment Standards Act. Employment standards include minimum wage, overtime, holiday pay, job-protected leaves, vacation pay, and termination notices. Note that these standards can vary significantly between jurisdictions. Payroll professionals should check employment standards legislation and/or government resources for the jurisdiction(s) in which the employer operates.

2.8.2 Additional Readings and Resources

Government of Canada. (2022). Current and forthcoming general minimum wage rates in Canada. https://srv116.services.gc.ca/dimt-wid/sm-mw/rpt1.aspx

Neumann, P., & Sack, J. (2020). eText on wrongful dismissal and employment law (1st ed., 11th update). 2012 CanLII Docs 1. Lancaster House. https://www.canlii.org/en/commentary/doc/2012CanLIIDocs1#!fragment/zoupio-_Toc42758125/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoAvbRABwEtsBaAfX2zgBYAmAdgFYAHAEYufAJQAaZNlKEIARUSFcAT2gBydRIiEwuBIuVrN23fpABlPKQBCagEoBRADKOAagEEAcgGFHE0jAAI2hSdjExIA