Busted! Don’t Believe These Payroll Myths!
Maintaining payrolls can be quite challenging. Whether it’s evaluating employee’s wages or overtime inclusions, it’s vital to handle all aspects accurately to avoid any miscalculations. However, as processing payrolls is an intricate process, numerous false facts have come into existence and are accepted as the truth.
Unfortunately, believing in these misconceptions have led businesses to overpay or underpay employees bringing down their business-standard. To help you steer clear of such falsehoods, Payroll Connected has debunked some of the most widely believed myths about payrolls.
Myth 1: Statutory Holiday Pay is eight hours into wage.
Each province defines how Statutory Pay is calculated, but none of which describes it as eight hours times their hourly wage. Typically, the average of previously worked shifts is calculated by a percentage or divided by a number of shifts worked.
Myth 2: Vacation pay is eight hours times the hourly wage.
Again, similar to Statutory Pay, this is a prevalent misconception. Often paying employees like this, is either paying them too much, or paying them too little, but rarely paying them the correct amount.
Vacation days are earned as days per year divided by pay periods (a consistent rate). Where pay is earned as Gross Pay (which often varies) times the provincial rate. Vacation days earned are consistently the same amount, and Vacation pay earned is inconsistently the same, this causes a discrepancy.
Luckily Payroll Connected calculates both Vacation and Statutory pay correctly, as per the labor laws.
Myth 3: Employees can be called in for a bit of training, then be sent home.
Though an hour of training or orientation is fine, most provinces have a minimum hour of work-rule, stating that if an employee reports to work, they must be allowed to stay for at least their minimum shift length (often two or three hours) before they can go home. However, you can give them the option to go home, and they can choose to do so as all parties are then in agreement.
If you’re looking to steer clear of myths like these, reach out to Payroll Connected. We offer fully automatic payroll processing software to small businesses in Canada. With our easy to use online payroll software, we will help you simplify the process precisely. Sign up now and choose the right package for your business.
For a complete list of our services, please click here. If you have any questions about Payroll Connected, we’d love to hear from you, please contact us here.