Paying vacation pay on vacation pay

It's one of payroll's little quirks: Vacation pay is often a vacationable earning on which vacation pay must be paid
By Alan McEwen
|Canadian Payroll Reporter|Last Updated: 08/07/2012

Vacation pay is pretty straight-forward. Employees work, they get paid wages for that work and on those wages, vacation pay must be paid.

But like many other aspects of payroll, it's not always that simple. One of payroll's little quirks is that vacation pay is often a vacationable earning on which vacation pay must itself be paid.

Don't get me wrong — whether employers should have to pay vacation pay on top of vacation pay is well beyond the scope of this article. Here, the purpose is just to demonstrate what the applicable employment standards require.