Canadian employment law operates on two levels: federal legislation (Canada Labour Code for federally regulated industries) and provincial/territorial employment standards acts that govern most workers. Employers also have significant payroll obligations to the Canada Revenue Agency, including CPP and EI deductions, T4 slips, and ROEs. The terms below cover the key concepts every Canadian employer must understand.
ROEs must be issued within 5 calendar days of an interruption of earnings (for paper ROEs) or by the second Wednesday after the end of the pay period in which the interruption occurred (for electronic ROEs). Failure to issue an ROE on time is an offence under the Employment Insurance Act. The ROE contains 22 blocks of information including insurable earnings, hours of insurable employment, and the reason for interruption.
How ClockIt Helps
ClockIt captures the detailed pay and hours data needed to populate all required ROE blocks accurately, ensuring HR can issue timely and correct records of employment to Service Canada.
Employers must deduct EI premiums from employees' insurable earnings and remit 1.4 times the employee's premium as the employer's share. In 2025, the employee EI premium rate is 1.64% on insurable earnings up to the maximum insurable amount ($65,700). Employers who fail to remit premiums correctly face interest and penalties from the CRA.
How ClockIt Helps
ClockIt tracks insurable hours and earnings for each employee, ensuring the correct EI deductions are applied and that ROE data aligns with CRA reporting requirements when employment ends.
In 2025, employees and employers each contribute 5.95% on pensionable earnings between the Year's Basic Exemption ($3,500) and the Year's Maximum Pensionable Earnings ($71,300), plus an additional CPP2 contribution of 4% on earnings between the first and second ceiling ($81,900). Both employer and employee contributions are required; failing to remit incurs the Penalty for failure to deduct and 10% interest.
How ClockIt Helps
ClockIt calculates CPP and CPP2 contributions precisely per employee, applying the correct YTD maximums and generating the CRA-ready payroll data for each remittance period.
Employers must file the T4 summary and all T4 slips with the CRA electronically (if filing 6 or more) by 28 February. A T4 is required for each employee who received employment income, including salary, wages, tips, bonuses, taxable benefits, and RRSP contributions made by the employer. Late filing penalties start at $100 and increase based on the number of missing slips.
How ClockIt Helps
ClockIt maintains comprehensive YTD earning and deduction records per employee, feeding the exact income and withholding data needed by payroll systems to produce accurate T4 slips on time.
Most provinces set the minimum at 4% of gross wages (equivalent to 2 weeks), increasing to 6% after a qualifying period (e.g., 5 years in Ontario). Quebec mandates 6% from the start. Employers may pay vacation pay as a percentage on each paycheck (common for hourly/seasonal workers) or accrue it and pay it out when vacation is taken. Vacation pay must be paid on regular wages and any insurable earnings.
How ClockIt Helps
ClockIt accrues vacation pay at the correct provincial rate based on each employee's earnings and years of service, tracking the balance available and ensuring the correct amount is paid out when leave is taken.
Federal holidays include New Year's Day, Good Friday, Victoria Day, Canada Day, Labour Day, National Day for Truth and Reconciliation, Thanksgiving, Remembrance Day, and Christmas. Ontario has 9 public holidays under the ESA, while BC has 11 under the Employment Standards Act. Employers who require employees to work on a statutory holiday typically owe 1.5× regular pay plus a substitute day off, or 2× pay with no substitute (jurisdiction-dependent).
How ClockIt Helps
ClockIt's Canadian public holiday calendar covers all 13 provinces and territories, automatically calculating stat-day pay entitlements and substitute day obligations for each employee based on their province of employment.
Employers register with and pay premiums to their provincial workers' compensation board, calculated as a rate per $100 of insurable payroll based on industry risk class. Premiums are adjusted based on the employer's claims history (experience rating). Employers who fail to register or under-report payroll face retroactive premium assessments, penalties, and loss of civil liability protection.
How ClockIt Helps
ClockIt's payroll integration provides accurate insurable earnings by classification code, ensuring workers' compensation premium bases are correctly reported to the relevant provincial board.
Key examples: Ontario's minimum wage is $17.20/hr (2025); BC's is $17.40/hr. Overtime thresholds also vary: Ontario requires overtime after 44 hours/week, while BC triggers it after 8 hours/day or 40 hours/week. Termination notice periods scale with years of service in most provinces. Employers with operations in multiple provinces must apply the correct provincial standard to each employee's location.
How ClockIt Helps
ClockIt applies province-specific overtime rules, minimum wage bands, and statutory leave entitlements per employee based on their work location, ensuring multi-province employers remain compliant in every jurisdiction.
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