How do you tax vacation pay?
By Peter Proszanski | October 25, 2011
How am I suppose to be taxed on my vacation pay?
Peter Proszanski answered:
Thank you for your question. In a nutshell, assuming that an employeeвЂ™s vacation time is simply added to their employment remuneration, the vacation time is then taxed in the same manner as the gross remuneration.
For future reference, here is a great link from CRA: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/ncmtx/rmnrtn-eng.html.