How to Calculate Overtime Pay in Canada

This episode provides a comprehensive guide to Canadian overtime compliance and payroll calculation, highlighting the significant complexity HR and payroll professionals face due to regulations that vary widely across provinces and territories. It explains the fundamental rules, noting that while the standard rate is typically time-and-a-half pay after 40 to 44 hours weekly, specific thresholds and exemptions are determined locally, such as the unique daily overtime rules in British Columbia. The text offers clear examples for calculating overtime for both hourly and salaried employees, stressing that the regular rate must accurately include all eligible earnings like bonuses and commissions. Furthermore, the source details common, costly compliance mistakes, such as misclassifying managerial roles or failing to track all work hours, and stresses the importance of accuracy to avoid penalties. Ultimately, compliance is tied to broader financial planning, as accurate overtime tracking is critical for managing payroll budgets and informing long-term staffing strategies.