01 Nov How to Calculate Stat Pay in Alberta
How to calculate Stat Pay in Alberta is a little… complicated. Everyone deserves a day off, don’t they? Sure they do! But whether you get paid for that day off… well… in Alberta, it’s unfortunately not as straightforward as you’d think. There’s qualifications that need to be met, and it’s a pretty high bar. I’ll get into all that below, but if you’re reading through this and it’s still making your head melt, why not sign up for a free 30 day trial of Canadian Payroll Connected instead, and let our software do the figuring for you?
How to Qualify for Alberta Stat Pay
There’s two factors in deciding if the employee gets Statutory Holiday Pay at all. The employee in question must have worked:
1. At least 30 shifts in the previous 365 days to the Stat Day
2. Worked at least 5 out of the 9 previous days of the week that the Stat Day falls on
The first one’s pretty easy. Have they worked 30 shifts in the past year? Yes? Great! Onto the next test.
The second one is a bit more confusing so we’ll break it down like this. Let’s say the Stat Day falls on a Monday. Now take a look at the previous nine Mondays and count how many of those Mondays the employee worked on. If they worked on five or more of those nine Mondays, then that test is passed as well, and you’re free to calculate the Stat Pay for this employee.
NOTE: If the employee is being paid by Salary or is on an Averaging Agreement, then these qualifications don’t need to be met.
How to Calculate Alberta Stat Pay
Once determined the employee qualifies to get Stat Pay, the calculation is actually pretty simple. Add up all the wages (and hours) worked in the 30 days previous to the Stat Day, then multiply it by 5 percent. The devil in this detail though is the definition of what constitutes “Wages”.
Wages are considered to be: Salary, Regular Pay, Paid time off instead of overtime pay, Commissions.
NOTE that it DOES NOT include: Overtime Pay, Vacation Pay, Stat Pay or Termination Pay
Once you’ve added up all the wages for the 30 days previous to the Stat, just take 5% and that’s the Stat Pay!
Working on a Statutory Holiday in Alberta?
There is a silver lining to the stat rules when it comes to working on a Stat Day.
Any employee that works on a Stat Day that isn’t being paid by Salary, receives a premium pay of 1.5 times their regular wages for the time worked. This is regardless of if they qualify for Stat Pay or not.
NOTE that even though this ratio of 1.5 is the same as the Overtime rate, these hours are not considered to be Overtime Hours.
REGARDING OVERTIME: When calculating Weekly Overtime, do not include the Stat Pay hours or Stat Worked hours in the consideration if the employee worked over 44 hours in the week.
It’s a Lot, But it Could Be Better!
Having to track all the work every employee performs for the previous 9 weeks, just to calculate Stat Pay correctly, is a major pain. But the good news is that there is a solution, and you’re in the right place right now. How to calculate Stat Pay in Alberta is not longer a question; it’s an answer. Because Canadian Payroll Connected is how to calculate Stat Pay in Alberta. It tracks all the shifts.
It tracks all the payments. It calculates the Stat Pay, Stat Worked, Overtime, Vacation Pay and all the payroll deductions. All you need to do is tell it how many hours the employees worked, and that’ it! As an added bonus, you can even try it for free for 30 days! How much is all that worth to you? Check out our pricing page. I bet it’s cheaper than you think.