Vacation Payout in Canada

We have legislative requirements to provide their employees vacation pay as a percent of salary. We are using PeopleSoft North America Payroll, Benefits and T&L module.

Vacation pay needs to be paid to Canadian hourly T4 employees with each payroll in all provinces except Quebec, at the rate specified by the appropriate Provincial Employment Legislation.

Example, Ontario Employees will get 4% of gross wages (excluding any vacation pay) in each paycheck as vacation pay with less than five years of employment. After five or more years of employment, they will be paid 6% the gross wages earned in each payroll as vacation pay.