Employers of Canadian employees are required to deduct income tax, Canadian Pension Plan contributions, and Employment Insurance contributions. Canadian Pension Plan and Employment Insurance taxes are subject to a maximum contributions cap for employee and employer contributions combined, after which no additional taxes in these categories will be collected for the year. Current rates can be found here.

Employees in Canada are taxed federally from 15% to 33% depending on their income bracket. Provincial taxes are applied on top of these taxes with significant variations between provinces.

Typically, the probationary period lasts three months for most provinces.

Employees typically work eight hours a day, 40 hours per week. Overtime is paid for every hour after 44 hours weekly in Ontario and 40 hours weekly in Québec. In most jurisdictions, overtime is paid at a rate of at least 150% the regular pay (or “time and a half”).

In Canada, employees are entitled to termination pay if they don’t receive a written notice of their termination. Termination pay is a lump sum payment equal to the regular wages that the employee would otherwise have been entitled to during the notice period. An employee earns vacation pay on their termination pay. For the employee to qualify for severance pay:They must have completed at least five years of employment with the employerThe company has a payroll in Canada of over 2.5 million CAD annually or has terminated over 50 employees in Canada in the past six months due to all or part of the company closing.The severance pay amount is usually equal to the weekly wages multiplied by the number of years the employee has been employed (to a maximum of 26 weeks).