Vacation Pay

By Victoria E. Turnbull

Vacation Pay

What is vacation pay?
Vacation pay is essentially income that arises from your employment. Vacation pay can either be paid out on each paycheque or it can be accrued and taken out by the employee under certain circumstances.

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When is vacation pay paid out?
Vacation pay can be paid out during a lay-off or separation, for a specific period of vacation, on an anniversary date, by the claimant’s request or at the end of every pay period.

What happens to my accrued vacation balance if I do not take a vacation?
If you do not take out any vacation pay, then your balance will continue to accrue and you vacation pay will accumulate. If you do not take vacation then vacation pay may be paid out by any of the following circumstances listed above. In addition, a common practice is for employers to have a set date in which vacation pay must be paid out to the claimant.

Final Wrap-Up
Overall there are numerous options for employees when it comes to vacation pay. If you require payroll services, you can trust the payroll specialists at Hamilton Accounting Solutions to ensure that your payroll is completed with speed, professionalism and accuracy. If you need more clarification, visit the Ontario Ministry of Labour’s website on Vacation Pay. 

Disclaimer:
THIS ARTICLE deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other
appropriate professional advice should be sought before acting upon any of the information contained therein.

Although every reasonable effort has been made to ensure the accuracy of the information contained in this letter, no individual or
organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of
liability for its contents or for any consequences arising from its use.