Understanding and mastering construction payroll management is not easy. Every Thursday, thousands of workers expect to be paid according to the hours worked, bonuses or allowances to which they are entitled. Don’t forget the various deductions that need to be properly calculated. In order to master all of these concepts, it is important to follow an adequate training course in order to effectively manage payroll.
We have asked our expert to expand our understanding of the subject. Here is what he presents us as explanations.
The gross salary corresponds to the salary earned by the employee while the net salary corresponds to the gross salary, less deductions (government and CCQ). The net salary is the salary paid to the employee. Jokingly, it is said that the net salary is the one left to the employee once the government authorities have washed the employee!
There are two reasons for this situation. First, the employee does not take vacations; it is his employer and even his industry that stops operations. But the main reason is that the “vacation pay” given to them by the CCQ is not in fact a pay. In fact, every week, the employer calculates an employee’s “vacation” pay and remits it to the CCQ on the employee’s behalf. As a result, the CCQ is merely an intermediary that remits to the employee the sums it holds on his or her behalf. So, no pay and no work. The employee can therefore apply for employment insurance!
Even if it is true that construction employees receive 13% of their gross salary on their pay, this percentage includes vacation (6%), compensation for statutory vacations (5.5%) and compensation for sick leave of 1.5%. Vacation for an employee in the construction sector is therefore 6%!
Participate in our Demystifying Construction Payroll training presented on March 12 and 18. (offered in french only)
The training is based on the different payroll application cycles.
The first cycle, weekly, focuses on payroll calculations: gross salary, leaves and vacations, security allowance, taxable benefits, government deductions, deductions specific to the construction sector, government contributions, contributions specific to the construction sector, net salary and establishing the hourly cost of a payroll.
The second cycle, monthly or periodic, is mainly focused on the management of remittances: provincial, federal, CNESST, CCQ, RBQ or other organizations. The concept of “period” will be clearly defined in order to facilitate the management of this step.
The third cycle, which is less regular, is ad hoc. It will deal with non-cyclical bonds, but
mandatory: termination of employment, work accidents, payroll deductions, etc.
Finally, we will close the loop with the annual cycle: the issuance of T1s and T4s as well as the CNESST (labour standards and CSST).
Trainer : Réal Petitclerc