Payroll information includes wages, pay period,  tax deductions, remuneration paid, employee’s benefits and general policies. All business owners and employers are responsible for adhering to the regulations of their specific province, and processing payroll is no exception. Each province deducts their own set of taxes and has varying rules for standard hours of work, leave of absence, minimum wages and more. It is therefore important to familiarize yourself with what your province requires of you. 

British Columbia expects a reasonable effort should be made for one time or annual training to ensure basic personal safety in the workplace, especially in specific industries.

Employers must pay their employees at least the agreed-upon rate of pay. This rate of pay needs to either meet or exceed the minimum wage rates as set out in the Employment Standards Regulation.

The wage rate enforced by the small business owner is the one agreed to between the two parties (employer and employee), either verbally or in writing. It is possible for the wage rate to change during the course of employment, but it can’t be reduced without giving the employee timely and clear notice. 

The general minimum wage in British Columbia was $14.60 per hour as of June 1st 2020 and has since moved to $15.20 on June 1st 2021.

The minimum wage for an employee serving liquor was $13.95 per hour as of June 1 2020 and has since moved to $15.20 on June 1 2021.

This is detailed information of what BC’s rules are in terms of hourly compensation of employees as per the Employment Standards Act.

Standard work hours 

The standard work hours cover 8 hours in a day and 40 hours in a week. However, standard work hours may differ if an employee is working under an averaging agreement or a variance.

Overtime hours

It is possible for employees to work more than the standard hours, a.k.a overtime. Overtime is calculated by adding the employee's regular rate plus half. Employees who work more than the standard 8 hours in a day or 40 hours in a week need to be paid overtime.

An employer is required to give their employee(s) at least 8 hours off between work shifts. Should an employee work during this period, these hours must be added to other hours worked in a day, meaning they are entitled to overtime rates for these hours. 

As an example, suppose a worker who works a six-hour shift, from 6am to 12pm, five days a week is then asked to work an extra four hours, from 2pm to 6pm. The worker has then worked 10 hours in a day, meaning they should be paid overtime rates for two of those hours. 

Minimum daily work hours

When an employee starts work, they must be scheduled for a shift that is at least two hours long. They must also be paid for reporting to work as scheduled, even if there is no work for them to complete.

Breaks 

An employer is not required to provide coffee breaks in British Columbia. However, a 30-minute unpaid meal break must be provided to employees that work more than five consecutive hours. In addition, the employee must be paid for the meal break if they are required to work, or are available to work, during that meal break. It is important to note that working through a meal break will not always result in overtime pay rates. 

Travelling 

Usually, commuting to work does not need to be compensated by the employer. 

That being said, commute time is included in work hours if an employee:

• Provides a service to an employer by transporting employer-provided tools, supplies, materials, or equipment to a worksite
• Is asked by their employer to pick up other employees and transport them to the worksite

Should employees fall under these two instances, they do not need to be paid their usual hourly rate to cover the travel time, but they must be paid at least minimum wage for those hours. 

Employers need to pay employees for travelling time out of town for work.

As an example, suppose an employee who works in Burnaby is asked by their employer to attend a meeting in Kelowna. The employee must be paid for the time spent travelling to and from Kelowna.

When you register with WorkSafeBC, an account will be opened in the name of your company, or “firm”. Reporting payroll and making remittances to WorkSafeBC may be done on a quarterly or annual basis depending on the amount of your premiums.

Certain expenses paid by the WCB have zero impact on EI benefits. The following payments are not regarded as earnings and are not allocated under the WCB: 

• Pensions and lump-sum amounts paid following a final settlement
• Payments that cover the cost of injury or illness-related expenses, including:
• Medical expenses and costs associated with purchasing or renting prostheses
• Physiotherapy or chiropractic care
• Auxiliary care expenses for day-to-day activities
• Tuition and training fees
• Dispensing fees
• Payments for permanent impairment services, covering
• Disfigurement or permanent diminished capacity 
• The loss of enjoyment of life directly tied to an injury or illness

Penalties for non-reporting of payroll and non-remitting of payments will be imposed. It is therefore important for employers to report your payroll by the due date – even if your payroll is zero.

Contact the Employers’ Advisers Office for information about the calculation of wages and salaries; shareholder earnings; prorating common payroll; and payments to contractors/subcontractors.

Before deciding which tax table you should use, you must first determine your employees’ province or territory of employment. This is dependent on whether or not you require your employees to report to work at a place of business, or if they are remote workers first. 

Should an employee report to work at your place of business, the province or territory of employment would be that in which the business is located. 

Use the tax table below for the province or territory of employment identified in order to withhold payroll deductions.

In terms of needing to temporarily leave work, these are the provincial standards in British Columbia. Certain places of employment may offer additional days off. 

Vacation pay

After an employee has completed one year of work, they are allowed to take vacation days with pay. 

Sick days

British Columbia sick leave laws require employees to give their employer notice if they are unable to work. Employees can take up to three days of unpaid, job-protected personal illness or injury leave. An employee must be employed for 90 calendar days before they qualify for sick leave. 

Employers are not required to give employees pay for sick leave in BC. However, if the employer offers paid or allowed sick leave, this amount may not be deducted at a later time from any other entitlements to vacation pay, paid holiday, or other wages. 

Holidays 

Statutory holidays do not necessarily entitle employees to a day off but employees may qualify for statutory holiday pay instead. 

Under the Canadian Labour Standards Code, each time New Year’s Day, Canada Day, Remembrance Day, Christmas Day, or Boxing Day falls on a Saturday or Sunday, employers must grant employees a paid holiday day on the work day immediately preceding or following the holiday, provided that the holiday is a requirement under provincial legislation. 

Should the statutory holiday fall on a regularly scheduled work day, and is worked, then the employee must receive time and half of their regular rate of pay for the first 11 hours worked. Any hours exceeding the first 11 hours, the employee is entitled to receive double-time plus one day off with pay. This vacation day must be taken while the employee is still working for the employer, and before the employee’s next annual vacation. 

British Columbia maternity leave

British Columbia maternity leave laws allow a leave length of 17 weeks without pay. The weeks are normally spread out with 11 weeks taken before and 6 weeks taken after birth. 

It is also required to give 4 weeks notice if possible and the employee can also have a 6 week extension added to their leave if required. 

An employee is allowed to quit their job at any time but the law does require the employer to compensate them for the length of employment. 

The Employment Standards Act dictates that employers can end an employee’s employment by providing a written working notice or pay (known as compensation for length of service), or a combination of both pay and notice.  

Below is a list outlining if an employee has been working with an employer for ‘X’ amount of time, then they will require ‘x’ amount of notice before they can be terminated. 

• Employment under 3 months: No notice required 
• Employment between 3 to 12 months: 1 week notice required 
• Employment between 1 to 3 years: 2 weeks notice required
• Employment of 3 years: 3 weeks notice required
• Employment over 3 years: for each year of employment over the 3 years, an additional week of notice is required, up to a maximum of 8 weeks.

With QuickBooks Online you can manage your business accounting and payroll in one place. By letting us do the math, you will always stay on top of tax rates to help keep your payroll accurate and on time. You will also have access to features like time and compensation tracking, payroll forms and more. Streamline your payroll process with QuickBooks Online today.