Changing a remittance schedule. Is it allowed? | How to report vacation taken before parental leave | Can your employer determine your vacation timing?
Changing a remittance schedule. Is it allowed?
QUESTION: My employer has asked me to contact the Canada Revenue Agency (CRA) about changing the frequency with which we remit source deductions. The CRA has classified us as a threshold 1 accelerated remitter, meaning we send in remittances twice a month. My employer would like to reduce the remittances to once per month. Does the CRA allow employers to request a change in remitting frequency?
ANSWER: The CRA determines how frequently an employer remits source deductions based on the average amount it withheld in source deductions two calendar years ago. This is called an employer’s AMWA or average monthly withholding amount. Accelerated remitters can ask the CRA to review their remitting frequency if their AMWA in the previous year changes to such an extent that it would move them to another remitter category if used instead of the amount from two calendar years ago.
For threshold 1 remitters, this would apply if their AMWA in the previous calendar year was less than $25,000 (the lower limit for a threshold 1 remitter). For threshold 2 remitters (i.e., those who send in remittances four times a month), this would apply if their AMWA in the previous calendar year was less than $100,000.
Regular remitters (i.e., those who send in their remittances monthly) may ask the CRA to change their remittances to quarterly, if they have been sending in remittances for at least 12 months and they meet the conditions for being a quarterly remitter (i.e., an AMWA of under $3,000 in the first or second preceding calendar year and a perfect record for sending in remittances and returns in the last 12 months).
The CRA will examine the employer’s account and notify it in writing of whether it approves the change.
How to report vacation taken before parental leave
QUESTION: One of our employees is taking two weeks’ paid vacation before starting his parental leave. How do we report this on his Record of Employment (ROE)?
ANSWER: The amount of vacation pay paid to the employee must be included in blocks 15B, Total Insurable Earnings, and 15C, Insurable Earnings by Pay Period on an ROE. Also include the vacation time in block 15A, Total Insurable Hours.
In block 11, Last Day for which Paid, record the date of the worker’s last day of paid vacation. This date must not be a statutory holiday.
Can your employer determine your vacation timing?
QUESTION: Can employers require employees to take their vacations only during certain months of the year?
ANSWER: While the decision about when an employee takes vacation time mandated under labour standards law is up to the employer, companies have to ensure that they comply with the Employment Standards Act for the timing of vacations.
Canada Labour Code: Employers must ensure that employees take vacation required under the code within 10 months of becoming entitled to it. If an employer and an employee cannot agree on when the employee will take the vacation, the employer can decide the date, but the employer must give the employee at least two weeks’ notice of when the vacation will begin.
Alberta: Employers must ensure that employees take vacation required under the Employment Standards Act within 12 months of becoming entitled to it. If an employer and an employee cannot agree on when the employee will take the vacation, the employer can decide the date, but the employer must give the employee at least two weeks’ written notice of when the vacation will begin.
British Columbia: Employers must ensure that employees take vacation required within 12 months of becoming entitled to it.
Manitoba: Employers must ensure that employees take vacation required within 10 months of becoming entitled to it. If an employer and an employee cannot agree on when the employee will take the vacation, the employer can decide the date, but the employer must give the employee at least 15 days’ notice of the date the vacation is to start. If an employer normally shuts down for an extended period each year, the employer may require its employees to take their annual vacations during that time.
New Brunswick: Employers must ensure that employees take vacation required within four months of becoming entitled to it. If an employer and an employee cannot agree on when the employee will take the vacation, the employer can decide the date, but the employer must give the employee at least one week’s notice of when the vacation will begin.
Newfoundland and Labrador: Employers must ensure that employees take vacation required within 10 months of becoming entitled to it. Employers must give employees at least two weeks’ written notice of the vacation dates, unless the employer and the employee make a different agreement in writing.
Northwest Territories: Employers must ensure that employees take vacation required within six months of becoming entitled to it.
Nova Scotia: Employers must ensure that employees take vacation required within 10 months of becoming entitled to it. Employers must give employees at least one week’s notice of when the vacation will begin.
Nunavut: Employers must ensure that employees take vacation required within 10 months of becoming entitled to it.
Ontario: Employers must ensure that employees take vacation required within 10 months of becoming entitled to it.
Prince Edward Island: Employers must ensure that employees take vacation required within four months of becoming entitled to it. Employers must give employees at least one week’s notice of when the vacation will begin.
Quebec: Employers must ensure that employees take vacation required within 12 months of becoming entitled to it. Employers must give employees at least four weeks’ notice of when the vacation will begin.
Saskatchewan: Employers must ensure that employees take vacation required under the Saskatchewan Employment Act within 12 months of becoming entitled to it. Employers may stipulate that all employees or all employees in part of the workplace must take their vacation at a time when the employer shuts down all or part of the workplace if the employees’ vacations last for at least one week. If the employer and the employee (or the trade union representing the employee) cannot agree on vacation timing, the act requires employers to provide at least four weeks’ written notice of when the vacation will begin.
Yukon: Employers must ensure that employees take vacation required within 10 months of becoming entitled to it.
