Understanding sick pay and stat pay for your employees can be confusing for any small business owner. To make it easier to understand, we have compiled both concepts’ basics. Whether you own your own business, are in the process of starting one, or are responsible for payroll in your company, we hope this information will help simplify the process.
Understanding Sick Pay
Sick pay, also known as sick leave, is the amount of time off a worker takes when they are unwell. In BC, workers are entitled to at least three paid sick days per year after 90 days of employment. As an employer, you must keep track of these sick days and ensure your workers are compensated accordingly.
To account for sick pay, you should:
- Keep track of your employee’s sick days, including the dates they were absent and the reason for their absence.
- Calculate the amount of sick pay owed based on your employee’s regular rate of pay.
- Deduct any statutory deductions such as Employment Insurance (EI) and Canada Pension Plan (CPP) contributions.
- Include the sick pay on your employee’s pay stub.
Understanding Stat Pay
Stat pay, also known as statutory holiday pay, is the pay an employee is entitled to when they take a day off on a statutory holiday. In BC, there are 10 statutory holidays per year, and workers who qualify are entitled to receive stat pay.
To account for stat pay, you should:
- Determine if your employee qualifies for stat pay based on their employment status and length of service.
- Calculate the amount of stat pay owed based on your employee’s regular rate of pay.
- Deduct any statutory deductions such as EI and CPP contributions.
- Include the stat pay on your employee’s pay stub.
Frequently Asked Questions
Q: Can employers require a doctor’s note for sick days?
A: Yes, employers can require a doctor’s note if it is specified in the employment contract or if there is a policy in place.
Q: Are part-time workers entitled to sick pay and stat pay?
A: Yes, part-time workers are entitled to sick pay and stat pay as long as they meet the eligibility criteria.
Q: What happens if employees take more sick days than they are entitled to?
A: If an employee takes more sick days than what they are entitled to, you may deduct the additional days from their vacation time or terminate their employment.
Accounting for sick pay and stat pay can be tricky, but following these steps will ensure that your small business is compliant with BC labour laws. Remember to keep track of your employees’ absences, calculate the correct amount of pay owed, deduct any statutory deductions, and include it on your employees’ pay stubs. With these tips, your small business will run smoothly and your employees will be happy!
