Determining a company’s payroll

Who should be included in payroll calculations?

Question: Under our employment standards legislation, a company doesn’t have to pay severance to terminated employees if the total annual payroll is less than $2.5 million. However, some employees are paid by drawing from the firm’s trust account and are responsible for all of their own deductions, such as CPP, EI and income tax, much as contractors would be. Should these employees be counted as part of the payroll when it comes to determining if severance must be paid?

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