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Set up a payroll item for statutory pay in QuickBooks Desktop

by Intuit Updated 7 months ago

Statutory holiday pay is compensation for holidays when many businesses are closed (for example, Christmas Day or New Year's Day). You can add a payroll item for paying your employees statutory holiday pay.

In this article, you'll learn about:

Set up a payroll item for statutory pay

  1. Add a new payroll item from the Payroll Items List. In the Add new payroll item window, select Wage (Hourly, Salary, Commission, Bonus).
  2. Select Next.
  3. Select Hourly Wages and then select Next.
  4. Select Regular Pay and then select Next.
  5. In the box Enter name for hourly item, name your payroll item; e.g. "Statutory Holiday.
  6. Select an expense account to track the expense. You can create a new account, if you want. It's recommended that you use a separate account so you can separately track the statutory pay.
  7. Make sure that Earnings is selected under Insurable and that the Reporting Period is For which they are paid. Select Finish to add the new item.
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Note: QuickBooks Desktop is unable to automatically calculate the hours and earnings to be included for statutory purposes. You must calculate these components separately and manually enter them into the payroll item in order to include them on the paycheque.

Statutory holidays in Canada

These statutory holidays are observed across Canada:

  • New Year's Day
  • Canada Day
  • Labour Day
  • Christmas Day

Depending on your location, you may also observe these statutory holidays:

  • Islander Day
  • Family Day
  • Louis Riel Day
  • Good Friday
  • Easter Monday
  • Victoria Day
  • National Aboriginal Day
  • Nunavut Day
  • Civic Holiday
  • Discovery Day
  • National Day for Truth and Reconciliation
  • Thanksgiving Day
  • Remembrance Day
  • Boxing Day

Types of statutory holidays

Stat pay - Average daily wage

This pay is mandatory for all employees and is typically based on ‌average earnings over a period of time before the statutory holiday. The specific regulations can vary by province, but in general, to be eligible for statutory holiday pay an employee must have been employed for at least 30 calendar days before the stat holiday and they must have worked or earned wages on at least 15 of the 30 days immediately preceding the statutory holiday.

For more details on how to calculate stat pay, you can refer to the Employment Standards Act for your province below.

Stat pay - Hourly premium

Employees required to work on a stat holiday are usually entitled to premium pay. The specific regulations can vary by province, but in general, an employee that works on a stat holiday is paid time-and-a-half of their wage rate for every hour worked.

For more details on how to calculate stat pay for employees that were required to work, you can refer to the applicable Employment Standards Act for your province below.

Provincial employment standards

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