When you hire an employee, usually there is an agreement of the amount of hours the employee will work. But what happens if your employee works more than the amount of hours you agreed upon when they were hired?
This FAQ will give you basic information on how provinces require employers to handle overtime while providing further resources to learn more. It will also show you how Wave handles overtime, and how you can pay your employees overtime with Payroll by Wave.
According to the Ontario government, most employees should receive overtime pay for every hour they work over X hours. They say for some employees this could be 44 hours, or it could less hours according to the employment contact. The overtime hourly rate typically is 1.5 times the regular hourly rate of your employee.
Click here to go to Ontario's overtime pay overview webpage to learn more.
The Alberta government states that most employees are entitled to overtime pay. While the usual overtime hours start if the employee worked over 8 hours that day or 44 hours for the week, the Alberta government allows the employer and employee to create their own overtime agreement.
Click here to go to the Alberta governments overtime regulations webpage.
The British Columbia government has created a great factsheet that covers the typical overtime possibilities for an employee. A quick overview: employers must pay overtime to employee who work over 40 hours per week or 8 hours per day. The overtime hours should be paid at 1.5 times the regular hourly wages.
Click here to access the overtime hours factsheet for BC.
To access the website of the other provinces to learn more about how they handle overtime pay, simply click the province.
- Nova Scotia
- Prince Edward Island
- New Brunswick
- Newfoundland and Labrador
- Northwest Territories
Each business and each employer/employee contract are unique. We recommend our customers to reach out to their local provincial government to verify that they are handling overtime pay correctly based on their business and employee settings.
How to add Overtime hours in Wave?
Payroll by Wave does not automatically calculate and apply overtime hours for your employees. You will have to manually calculate and add the overtime hours to the timesheets page to pay your employees overtime.
To add the overtime hours to the timesheets page, select the 'Payroll' tab on the left side navigation bar and click the 'Timesheets' page. Once you are in the timesheets page, enter the amount of overtime hours your employees worked for that payroll period under the 'Overtime' column. Overtime wages in Wave are calculated at 1.5 times the regular hourly wage of the employee.