ROE Form Block 17A: The Vacation Pay

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Block 17A: The Vacation Pay

In this block, employers would need to enter any vacation pay that they have paid or will pay to the employee because of the separation. The table that follows explains the different ways that employers can pay vacation pay. It explains whether employers need to report this in Block 17A as well.

The Types of Vacation Pay and the Fields Required

The Type of Vacation Pay

The Description

The Fields Required

Included with each pay

This is usually paid as a percentage of the employee’s earnings for a pay period

Employers should not report the amount in Block 17A. They would need to avoid including any comments in Block 18 as well. This would apply to comments such as ‘Included with each pay’ or ‘Paid with every pay’

Paid because no longer working

This denotes any vacation pay that is payable to the employee because of layoff or termination of employment

Employers would need to report this amount in Block 17A. They would need to avoid including any comments in Block 18, such as ‘17A $$ is included in 15C P.P. 1’

Paid for a vacation leave period after the last day for which paid

Example: A paid vacation period during a plant shutdown that will occur while the employee is on leave

This refers to any vacation pay paid by the employer for a specific period of leave after the date in Block 11, when the employee plans to take vacation leave during the interruption of earnings and the employer granted the leave

In Block 17A, employers would need to include the amount. If the employer is using a paper Record of Employment (ROE), the employer would need to include the dates of the vacation leave in Block 18. In case the employer is using the Record of Employment (ROE) Web online, the employer would need to include the dates in the appropriate field.

Note: In some cases, employers might be paying employees for vacation leave periods immediately after the last day of work. In this scenario, the employer would need to consider the last day for which paid as the last day of the period of leave. In addition, the employer would not need to report the period of leave in Block 17A.

Anniversary vacation pay payment made for a date that falls after the interruption of earnings

This refers to any vacation pay paid on a specific date (or dates) each year

The employer would need to specify the amount in Block 17A. If the employer is using a paper Record of Employment (ROE), the employer would need to include the date of the anniversary in Block 18. In case the employer is using the Record of Employment (ROE) Web online, the employer would need to include the date in the appropriate field.
 Situations could arise where there are hours attached to the vacation pay. In this case, the employer would need to report these hours in Block 15A. In some cases, the employers might not be sure if there should be hours attached or the number of hours to report. In this scenario, the employer would need to contact the Canada Revenue Agency (CRA) for a ruling on their individual situation.

The Guidelines for Vacations Taken Prior to their Being Earned

In some cases, employers advance vacation leave to their employees before their employees earn it. In such cases, situations could arise where employees might have taken vacation leave before the employer lays them off and before the employees earned all the leave. In this case, employers would need to avoid showing any amount in Block 17A. This is because in cases like this, the employees would actually have overpayments with the employer. As is applicable with all overpayments, employers would not need to report these hours and earnings on the Record of Employment (ROE). In addition, the employers would need to amend the amount they paid the employee for during the pay period in which the employee took the leave. This would help in ensuring that employers enter the correct amounts on the Record of Employment (ROE). In addition, this would help in ensuring that the Record of Employment (ROE) reflects the amount that the employer actually needed to pay the employee. Moreover, employers would not need to include any comments in Block 18 too.

Note:

  • Situations could arise where the employer subsequently determines that they will not be able to recover the money they paid in error to the employee

  • In this case, the money will typically become a taxable benefit

  • In this scenario, the employer would need to include the amount on the Record of Employment (ROE) in the pay period during which the employer determines that the employer would not be able to recover it

  • In addition, employers would not need to include any insurable hours for this amount in Block 15A


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