Statutory Holiday Pay in Ontario: A Payroll Guide for Guelph Small Business Owners
If you’re a small business owner in Guelph, ensuring that your payroll is compliant with Ontario’s Employment Standards Act (ESA) is critical. One area where many businesses struggle is calculating statutory holiday pay correctly—especially for hourly, salaried, and commission-based employees.
Failing to pay statutory holiday pay properly can lead to Ministry of Labour complaints, penalties, and employee dissatisfaction. Instead of worrying about payroll mistakes, Guelph businesses can outsource their payroll to a professional bookkeeping firm to stay compliant.
In this guide, we’ll break down everything you need to know about statutory holiday pay in Ontario, how to calculate it, and how a professional bookkeeper in Guelph can help manage payroll for your business.
Why Guelph Small Business Owners Should Care About Statutory Holiday Pay
Many small business owners in Guelph, Kitchener, Waterloo, and Cambridge aren’t aware of the exact payroll requirements for statutory holidays. Mistakes in payroll can lead to:
✅ Legal Issues & Compliance Risks – Incorrect holiday pay can result in Ministry of Labour investigations.
✅ Employee Disputes & Poor Retention – Employees who are underpaid may leave or file complaints.
✅ Payroll Processing Errors – Manually calculating statutory pay increases the risk of miscalculations.
📌 Solution: Instead of handling payroll in-house, many Guelph businesses use QuickBooks Online (QBO) and professional bookkeeping services to automate statutory holiday pay calculations and ensure compliance.
Mandatory Paid Statutory Holidays in Ontario
Under Ontario’s Employment Standards Act (ESA), the following nine (9) statutory holidays must be paid to eligible employees:
- New Year’s Day – January 1
- Family Day – Third Monday in February
- Good Friday – Friday before Easter Sunday
- Victoria Day – Last Monday before May 25
- Canada Day – July 1
- Labour Day – First Monday in September
- Thanksgiving Day – Second Monday in October
- Christmas Day – December 25
- Boxing Day – December 26
Additional Holidays (Not Mandatory Under Ontario Law)
Some businesses in Guelph voluntarily offer paid leave for:
- Easter Monday
- Civic Holiday (First Monday in August)
- Remembrance Day (November 11)
Whether or not your business offers these non-mandatory holidays, a Guelph bookkeeper can help track and process them correctly in your payroll system.
Who Qualifies for Statutory Holiday Pay in Ontario?
To receive statutory holiday pay, an employee must:
✔ Work their last scheduled shift before and after the holiday (unless they have a valid reason).
✔ Be covered by the ESA (some exemptions apply for federal employees or special industries).
Types of Employees Eligible for Statutory Holiday Pay
✅ Hourly Employees – Earn holiday pay based on wages in the four weeks before the holiday.
✅ Salaried Employees – Receive their full salary without deductions.
✅ Commission-Based Employees – Holiday pay is based on total earnings (including commissions) in the four weeks before the holiday.
What If Employees Work on a Statutory Holiday?
Employees working on a stat holiday may be entitled to:
- Premium Pay (1.5x their regular wage) plus a substitute day off, OR
- Regular Statutory Holiday Pay, depending on company policies.
📌 Need help with payroll processing? A bookkeeping service in Guelph can ensure your employees get paid correctly while keeping your business compliant.
How to Calculate Statutory Holiday Pay for Biweekly Payroll
Statutory holiday pay is based on regular wages earned in the 4 weeks (28 days) before the holiday.
Formula for Statutory Holiday Pay
Stat Holiday Pay = Total Wages Earned in 4 Weeks Before Holiday divided by Number of Days Worked in That Period
Example: Hourly Employee Calculation
- Hourly wage: $20 per hour
- Works 40 hours per week
- Biweekly payroll system
- Total wages for the last 4 weeks:
- Week 1: $800 (40 hours × $20)
- Week 2: $800 (40 hours × $20)
- Week 3: $800 (40 hours × $20)
- Week 4: $800 (40 hours × $20)
- Total earnings: $3,200
- Total days worked in 4 weeks:
- 5 days per week × 4 weeks = 20 days worked
- Statutory Holiday Pay Calculation:
- $3,200 ÷ 20 days = $160 in statutory holiday pay
📌 A bookkeeper in Guelph can help automate this process using QuickBooks Online (QBO) to avoid payroll mistakes.
Why Guelph Small Businesses Should Hire a Bookkeeper for Payroll
Handling payroll compliance, statutory holiday pay, and tax deductions can be time-consuming and complex. Many small business owners in Guelph outsource payroll to professional bookkeepers to ensure:
✔ Accurate Payroll Processing – No more manual calculations or mistakes.
✔ Compliance with Ontario’s ESA Laws – Avoid Ministry of Labour fines.
✔ Time Savings – Focus on growing your business, not on payroll paperwork.
✔ Integration with QuickBooks Online (QBO) – Automate payroll and tax remittances.
📌 Our bookkeeping firm in Guelph specializes in payroll processing and QuickBooks Online setup for small businesses.
Let’s Handle Your Payroll & Statutory Holiday Pay!
As a Guelph bookkeeping firm, we help small businesses with:
✅ Payroll Processing (Hourly, Salary, and Commission Employees)
✅ Statutory Holiday Pay Calculations
✅ QuickBooks Online (QBO) Payroll Setup
✅ Tax Remittance & Compliance
🔹 Tired of payroll headaches? Let us handle your statutory holiday pay and payroll management so you can focus on running your business!
📞 Contact us today for professional bookkeeping and payroll services in Guelph.
Final Thoughts
Statutory holiday pay is mandatory in Ontario, and small business owners in Guelph must ensure compliance. Whether you’re managing hourly, salaried, or commission-based employees, calculating holiday pay correctly is crucial.
Avoid payroll errors and stay compliant—hire a professional Guelph bookkeeping firm to manage your statutory holiday pay, payroll, and QuickBooks Online accounting.
🔹 Need help with payroll? Contact our bookkeeping firm in Guelph today!