Tag Archives: retiring allowance

Employee Rights during the Notice Period

There are 3 different ways employers may terminate employment: allowing employees to work out the notice period, paying salary continuance or terminating without notice. All three have an impact on when the employment relationship ends and when employee rights and … Continue reading

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When does employment end – What is employment versus other income?

A number of recent postings to Canadian HR and payroll related LinkedIn groups, have raised questions about classifying earnings as either income from employment (wages in lieu of notice) or as other income (retiring allowance). In part, these postings also … Continue reading

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When do earnings stop being pensionable and insurable?

The CRA asserts that earnings don’t stop being CPP pensionable or EI insurable, just because the employment relationship is over. My experience is that most payroll practitioners follow logic something like this to determine if CPP or EI source deductions … Continue reading

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What’s the province of employment when paying a retiring allowance?

Everyone knows the importance of the province of employment. First, getting this right is fundamental to correctly calculating income tax source deductions, since these are in part based on legislation specific to the province concerned. Second, since the province of … Continue reading

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