2.1 Overview

In this chapter, you will learn about the law as it impacts payroll. You will start with a very brief overview of Canadian law as it pertains to payroll, learning about how legislation and common law apply to payroll, and understand what legislation is made by the federal and provincial governments, respectively. An important common law “test” will help you differentiate whether a worker is likely to be an employee or an independent contractor (self-employed). This distinction is important because most of the legislation that impacts payroll applies to employees and not independent contractors.

With respect to legislation, you will learn about federal and provincial legislation that requires employers to withhold and remit specific amounts from employees’ pay and (where applicable) requires employers to make payments towards certain government programs. You will also learn about employment standards and regulations in Canada, and how these laws impact payroll. Specifically, you will learn to identify whether federal or provincial or territorial standards apply and how to find information about the employment standards for each Canadian jurisdiction online. You will compare specific employment standards, such as minimum wage, across Canadian jurisdictions and learn more broadly about other employment standards, with references to specifics from Alberta, Ontario, and federally regulated industries. Finally, you will learn about the impacts of the COVID-19 pandemic on the payroll landscape.

Specific Learning Outcomes

Image Credit

Canadian Parliament by Tetyana Kovyrina, Pexels licence