Vacation Pay in ontario?

Question

In ontario is vacation pay based on your income before or after income tax?

Answer 1

Vacation pay (unless you're under a collective agreement) is 4% of your gross pay, and it in turn is taxed.

Answer 2

Vacation benefits paid by your employer are always subject to income tax, no matter which province they are paid in.

The amount of vacation pay you are entitled to is usually defined by your union's collective agreement, employment contract or the provincial Labour Standards Act, whichever applies, and is usually based on the gross amount of your pay.