Your quick guide to the Yukon payroll legislation

If your business is based in the Yukon or you have employees who live and work there, you know that payroll legislative information can be cumbersome to find; it’s rarely consolidated into one handy reference.

Well, get ready to breathe a sigh of relief – we’ve got you covered with a centralized breakdown relevant to your region!

For a closer look at the Yukon prescribed zones, WSCB maximum assessable earnings, minimum wage, overtime, statutory holidays, reporting pay, and special leaves, read on…

Prescribed zone & TD1 forms

For the purposes of statutory deductions, Canadian businesses should be aware of prescribed zones. While other provinces in the country have specific communities outlined as prescribed zones, all places in the Yukon (as well as Nunavut and the Northwest Territories) are considered a “prescribed northern zone.” This is particularly relevant for employers to keep in mind as employees fill out their TD1 forms, which are used to determine the amount of federal and territorial tax to deduct from their pay.

“Employees who live in a prescribed zone during a continuous period of at least six months (that begins or ends in the tax year) may be entitled to claim a residency deduction when they file their income tax or benefit return,” reads the Government of Canada’s website. “Employees may claim a deduction for this on Form TD1. The deduction will reduce the remuneration on which you withhold income tax.”

Our in-house experts say that best practices for filling out TD1 forms are among the questions frequently asked of the Yukon employers, especially those who conduct contract or seasonal work in the territory. To ensure you’re adhering to prescribed zone payroll legislation, make sure to take note of whether or not employment periods extend into the six-month period mentioned above. The employment period also can affect the TD1 in respect to the employee’s tax province/territory (known as province of employment) as well.

For more information on deduction for living in a prescribed zone, visit: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4001/employers-guide-payroll-deductions-remittances.html#P787_82252.

Maximum assessable earnings for Workers’ Safety and Compensation Board (WSCB) Yukon – changes for 2025!

For businesses operating in the Yukon, it’s important to note that the filing deadline for WSCB maximum assessable earnings is the last day of February… and that the maximum assessable earnings increased for 2025 (now at $104,975). Good news: a third-party payroll provider like Payworks can help simplify WSCB remittances!

Payworks pro tip: Through Payworks’ Payroll application, you can easily calculate WSCB Yukon amounts each pay period and create reports to ensure compliance with premium remittances.

For more information on WSCB in the Yukon, visit: https://www.wcb.yk.ca/.

Minimum wage

Federal and provincial/territorial legislation determines the lowest rate at which an employer can legally pay its employees – otherwise known as minimum wage. This rate isn’t impacted by whether the employee has full-time, part-time, or casual employment status, or if they’re paid by salary, commission, or a flat piece or hourly rate.

When it comes to minimum wage, the Yukon employers should mark their calendars now, because the general rate typically changes on April 1 of each calendar year!

Payworks pro tip: When changes to minimum wage occur, Payworks’ clients receive a warning in-app (under the reports and violations screen) before finalizing their payroll if there are any staff being paid below the minimum. Our Payroll solution also allows for mass pay adjustments, which is particularly handy when a business has multiple employees impacted by a change to the minimum wage rate.

For more information on minimum wage in the Yukon, visit: https://yukon.ca/en/doing-business/employer-responsibilities/find-minimum-wage-yukon.

Overtime

An exception to minimum wage occurs when a worker exceeds a legislative threshold for hours worked in a specific period, thus qualifying them for overtime rates. Like minimum wage, the parameters to qualify for overtime and the overtime rates in Canada vary by province and territory.

Payworks pro tip: For an overview of overtime and the steps to consider in making a strategic plan that clearly defines overtime, visit: https://blog.payworks.ca/overview-of-overtime-employers-should-have-a-strategic-plan-that-clearly-defines-overtime.

Here’s what the Yukon employers need to know about overtime:

An employee qualifies for overtime pay – which is calculated at time-and-a-half in the Yukon – if they’ve worked:

• More than 80 hours in two weeks, or
• More than 72 hours in two weeks if the duration includes a statutory holiday, or
• More than 12 hours in a day.

Payworks pro tip: Using Payworks’ Time Management solution, break and shift rules can be set up to ensure the correct overtime calculations are being applied.

For additional information on overtime in the Yukon, visit: https://yukon.ca/sites/default/files/cs-employment-standards-averaging-agreements.pdf.

Statutory holidays

Across the country, it’s common that both the statutory holidays themselves and the regulations under which employees qualify for general holiday pay differ between regions. In the Yukon, there are 11 statutory holidays, including:

1. New Year’s Day
2. Good Friday
3. Victoria Day
4. National Indigenous Peoples Day
5. Canada Day
6. Discovery Day
7. Labour Day
8. National Day for Truth and Reconciliation
9. Thanksgiving Day
10. Remembrance Day
11. Christmas Day

For statutory holidays, eligible employees are entitled to receive a day off with general holiday pay. If the holiday falls on a non-working day, the employee is then entitled to a holiday on the next workday immediately following the holiday.

Heritage Day, Easter Monday, and Boxing Day are not statutory holidays in the Yukon; however, if they’re part of an employment contract, employees may receive general holiday pay for these days.

For more information on statutory holidays in the Yukon, including employee eligibility and general holiday pay, visit: https://yukon.ca/en/doing-business/employer-responsibilities/find-yukon-statutory-holiday.

Reporting pay

A unique element in the Yukon payroll legislation that differs in comparison to other jurisdictions in Canada is the eligibility for reporting pay: the compensation an employee is entitled to receive when they’ve been called into work or they’ve reported to work for a scheduled shift but are sent home immediately or partway through the shift.

The Yukon employers should be aware that the minimum requirement for employees to receive reporting pay is two hours, which is the lowest required minimum in Canada.

For more information on reporting pay (also referred to as call-in pay) in the Yukon, visit: https://yukon.ca/sites/default/files/cs/cs-employment-standards-general-fact-sheet_.pdf.

Special leaves

The Yukon employers should be aware of the many different leaves applicable under the territory’s employment standards. While not all encompassing, we’ve highlighted a few of the special leaves without pay below:

Employers in the Yukon should be aware that employees are entitled to take a leave of absence if they’ve experienced the loss of a family member, or are managing the care of a critically ill family member/child. For more information, visit: https://yukon.ca/en/employment/employment-standards/find-out-about-special-leave-without-pay.

With Payworks, you can keep breathing those sighs of relief when it comes to legislative compliance for your organization’s payroll. Simply put, we’re payroll experts so you don’t have to be! We want to help Canadian businesses stay informed on payroll legislation and changes, which is why our Payroll Guide is free for all to download – no strings attached: https://www.payworks.ca/landing-pages/campaigns/payroll-guide.