Policy:
Payroll – Salaries, Wages & Overtime
Category:
Accounting & Finance
Authorized by:
_______________________
Pages: 3
Date effective: Nov 27 2012
To be reviewed: Nov 27 2015
Revised:
Joan Arruda, C.E.O.
POLICY
Payment of salaries, wages, and overtime will be administered as specified under the Agency’s
human resources policies.
PURPOSE
The purpose this Statement of Policy and Procedure is to specify particulars of pay procedures
and time sheet reporting for employees.
SCOPE
This policy applies to all employees dealing with payroll information.
RESPONSIBILITY
The Human Resources Department, through payroll staff, will post an annual schedule of
timesheet due dates and payroll deposit dates for all staff required to submit a timesheet in order
to be paid (casual staff). All departments/centres are responsible for ensuring that when
applicable, completed and duly approved time sheets are submitted to the appropriate payroll
staff by the posted due date.
The Human Resources Department is responsible for providing details of permanent, contract
and casual employment arrangements to the payroll staff.
The Finance Department/payroll staff is responsible for ensuring that regular and overtime pay
for all employees are reflected in the next available payroll, and that all pay has been properly
approved, reviewed and reconciled.
PROCEDURES
Salaries
(a)
(b)
Each pay period, salaried employees shall be paid a gross amount equal to their annual
salary divided by the number of pay periods in the current fiscal year.
Changes to salary rates must be authorized by the member of the Management team
responsible for the area an employee work in.
Wages and Overtime
(a)
(b)
(c)
(d)
Where an employee is part of a collective, the source of pay and benefits information shall
always be the collective agreement.
Each pay period, wage-rate employees shall be paid for the scheduled hours from the
previous period, plus time-and-one-half for any time worked in excess of 44 hours per
week (excluding meals). Payment for hours worked on statutory holidays shall be as
required under the Employment Standards Act, (normally at double-time).
Where applicable, time sheets shall be maintained for each wage-rate employee on an
exception basis by pay period. That is, regularly scheduled hours shall be assumed and
the time sheet should merely reflect all overtime and premium hours worked, as well as
variances from regularly scheduled work, such as vacation taken and time off for illness.
Time sheets shall be signed by the employee’s supervisor to evidence approval.
Overtime amounts paid shall not be included in calculations for pay-based benefits or
pension, unless required otherwise under agreement, contract or collective agreement.
Family Day Care Services
Page 1 of 3
Payroll – Salaries, Wages and Overtime
(e)
(f)
Completed and approved time sheets must be submitted to the Human Resources
Department/payroll staff by the posted due dates.
Changes to wages, premium and overtime rates must be authorized by the member of the
management team responsible for the area an employee works in.
Union and Professional Dues
Union and professional dues that are payable by the employee shall be treated as a source
deduction.
Direct Deposit
(a)
All employees shall be paid by direct deposit into a bank account identified by the
employee and verified by the bank as pertaining to that employee.
(b)
Before release of funds to the bank, the Director, Human Resources shall authorize total
payroll and individual deposits.
Pay Advances and Special Pay
Under rare and exceptional circumstances, the Agency may provide an employee with an
advance on their pay (e.g., new employee not yet set up on the payroll system). In these
circumstances, the Agency may provide a cheque if authorized and signed by the employee’s
supervisor and the Finance Manager.
Casual Employees
a.
Casual employees are employees who are employed as required with no guarantee of
minimum hours of employment. A casual employee must provide their full name, address
and SIN to the Human Resources Department.
b.
Casual employees shall complete a time report, which must be approved by the centre
supervisor.
c.
Casual wages will be paid twice a month and are subject to the same regulated source
deductions as regular employees. Therefore, the casual employee’s pay deposit will
incorporate deductions for CPP, EI and Income Tax.
d.
At the end of their employment, casual employees shall receive a Record of Employment.
Contract Employees
a.
Contract employees shall be paid according to the terms of their contract. The contract
employee shall be treated as a casual employee except that wage payments shall be made
according to the rates or deliverables identified in the contract rather than on an hourly
basis.
b.
All payments to contract employees must be authorized by the employee’s supervisor.
Review and Authorization of Payroll
a.
No additions, deletions and changes to payroll may be processed unless the required
approvals are indicated thereon. The Director, Human Resources will review all additions,
deletions and changes to payroll before processing and initial the additions, deletions and
changes as evidence of review.
b.
The Payroll Coordinator will reconcile the total payroll to the previous period’s payroll or to a
standard payroll and ensure that all changes are documented and explained. The
reconciliation will be signed and dated.
c.
The Payroll Coordinator will review exception reports produced by the payroll system that
show unusual amounts and ensure that all items are explained. The review will be signed
and dated.
Family Day Care Services
Page 2 of 3
Payroll – Salaries, Wages and Overtime
d.
The Director, Human Resources will review and sign off the payroll register for reasonability
at each pay period and review, sign off and date the payroll reconciliation and exception
reports.
Monthly Reconciliations
a.
Once each month, within five business days after month-end, the Human Resources
Department will reconcile all payroll expenses, assets and liabilities from the general ledger
to the payroll register. All differences must be cleared and any uncleared discrepancies
must be reported to the Director, Human Resources immediately.
b.
All remittances required to be made to governments, government agencies or any other
organizations (including tax deductions, CPP, EI, workers compensation, health taxes,
pensions, dues, charitable donations, etc.) must be made within the times required. When
the payroll is administered by an external service provider, the Finance Department is still
required to satisfy itself that remittances are made on time by scrutinizing information slips,
returns and statements of account as received. These remittances must be reconciled as
specified in (a) above.
c.
Pay cheques not cashed and direct deposit payments rejected must be investigated and
followed up on a timely basis.
Annual Reconciliation and Review
a.
Within fifteen business days of each calendar year end, the Payroll Coordinator will review
and reconcile the gross amount paid to every employee and check it against information in
the employee payroll file.
b.
The reconciliations required for federal and provincial tax purposes will be prepared
annually by the Payroll Coordinator. The Director, Human Resources will sign those
reconciliations as evidence of being satisfied that all employees were paid according to policy
and their employment agreements.
Family Day Care Services
Page 3 of 3