The rational is to determine the average day of work for the past 4 weeks of work. If you are paying your employees on a bi-weekly basis, you can obtain the last 2 gross pays, then divide this number by 20 days (5 each week * 4 weeks). This will give you an average day of work. Multiply this number time the number of days and there you have it.
so the formula for your Excel file is:
=(Gross bi-weekly1+Gross Bi-weekly 2)/20*day
Don’t forget to add the 4% vacation pay, calculate the EI, CPP, and taxes.
For more information please contact The Bookkeeping Company of Ottawa at 613-266-7013
You can also visit Ontario Labour Board website (http://www.labour.gov.on.ca/english/es/tools/php_calc.php)