Fall Construction Payroll Checklist: Key Tasks for Contractors Before Year-End

On a crew's last day before the winter layoff, the work is done, but payroll's work is just starting. Each worker needs a Record of Employment with accurate hours and earnings, and a mistake can hold up their EI claim when they need it most. Add Thanksgiving, Remembrance Day, and year-end prep to the same few weeks, and fall becomes one of the most demanding stretches of the year for construction payroll.

For construction owners, payroll administrators, and HR teams, the risk isn't any single task. It's how many tasks overlap. This checklist walks through what to review each fall: CPP and EI maximums, provincial holiday rules, seasonal layoffs and ROEs, scheduling changes, WCB reporting, apprentice training, and early year-end preparation.

Key Takeaways

• Higher earners may reach their 2026 CPP, CPP2, and EI maximums this fall. Deductions stop for the rest of the year in their employment with you, then restart on January 1.
• The base CPP rate drops on January 1, 2027, and EI maximum insurable earnings rise, so you need to update payroll settings before the first 2027 pay run.
• Holiday entitlements depend on whether an employee is federally or provincially regulated, and on the province.
• Electronic ROEs are generally due within five calendar days after the end of the pay period in which the layoff occurs.
• Apprentices leaving for block release training need Code J on their ROE, not Code A.
• Workers' compensation deadlines differ by board and by how often you report.
• T4s for 2026 are due March 1, 2027, because the last day of February falls on a Sunday.

Watch for Workers Reaching Their 2026 CPP and EI Maximums

CPP, CPP2, and EI deductions are each subject to annual maximums. Foremen, operators, and tradespeople who work heavy overtime often reach these limits in the fall.

For 2026, the first earnings ceiling (YMPE) is $74,600 and the second earnings ceiling (YAMPE) is $85,000. CPP2 is the 4% contribution on earnings between those two ceilings, so the maximum 2026 employee CPP2 contribution works out to $416, with the employer matching. For EI, maximum insurable earnings are $68,900 and the maximum annual employee premium outside Quebec is $1,123.07.

Once an employee reaches a maximum in their employment with you, stop that deduction for the rest of the year. Be careful when workers change employers. The annual maximums apply to each job with a different employer (a different business number). A new employer must deduct CPP without regard to what a previous employer deducted, even if the worker already reached the maximum there. Limited exceptions apply to successor employers after a restructuring.

Get Ready for 2027 Rate Changes

Two changes take effect on January 1, 2027:

• EI: The 2027 employee rate is $1.64 per $100 of insurable earnings, and maximum insurable earnings rise to $70,800. The maximum annual employee premium rises to $1,161.12.
• CPP: Bill C-30 lowers the base CPP contribution rate for employees and employers from 4.95% to 4.75%, effective January 1, 2027. The 1% first additional contribution is unchanged, so the combined first-tier employee rate moves from 5.95% to 5.75%. CPP2 stays at 4%.

The 2027 YMPE and YAMPE are not yet available. CRA typically announces them in November. For example, the 2025 figures were announced on November 1, 2024. Once CRA publishes them, confirm that your payroll provider has loaded all the new values before your first January pay run.

Plan Around Fall Statutory Holidays

Before processing holiday pay, confirm which rules govern each employee. Most contractors are provincially regulated and follow their province's employment standards. Federally regulated employers follow the Canada Labour Code, which lists 10 general holidays, including National Day for Truth and Reconciliation, Thanksgiving, Remembrance Day, and Boxing Day.

National Day for Truth and Reconciliation (September 30)

This is a federal general holiday for federally regulated employees. Some provinces and territories also recognize it under their own employment standards. PEI, for example, includes it among its eight paid holidays. Others do not, so check the jurisdiction governing each employee.

Thanksgiving (Monday, October 12, 2026)

For provincially regulated employees, Thanksgiving is a paid holiday in most provinces, including Ontario, but not in Atlantic Canada:

• New Brunswick's eight paid public holidays do not include Thanksgiving.
• PEI's paid holidays do not include it.
• In Nova Scotia, Thanksgiving is a retail closing day, but employers are not required to treat it as a paid holiday.
• Newfoundland and Labrador's six paid public holidays under its Labour Standards Act do not include Thanksgiving.

Remembrance Day (Wednesday, November 11)

Status varies widely:

• New Brunswick and PEI include Remembrance Day as a paid holiday.
• Ontario employers are not required to give the day off under the ESA.
• In Nova Scotia, Remembrance Day is governed by a separate Remembrance Day Act.

Christmas and Boxing Day

Boxing Day falls on Saturday, December 26, 2026. Substitute-day rules depend on the jurisdiction:

• Federally regulated employees: If Boxing Day falls on a Saturday that is not a scheduled work day, the employee gets a paid holiday on the scheduled work day immediately before or after it.
• Ontario: When a public holiday falls on an employee's non-working day, the employee is entitled to a substitute holiday with public holiday pay, or holiday pay alone if they agree in writing.

Construction-Specific Holiday Rules

In Ontario, certain construction employees fall outside the standard public holiday entitlements. The exemption applies to employees who meet the ESA definition of construction employee and receive either 7.7% or more of their hourly wages for vacation or holiday pay (if employed less than five years), or 9.7% or more (if employed five years or longer).

Collective agreements can also add holidays or set their own holiday pay. For union crews, check the agreement before each holiday.

Prepare for Seasonal Layoffs and Records of Employment

Meet ROE Deadlines

For employers on a weekly, biweekly, or semi-monthly pay cycle, electronic ROEs are due within five calendar days after the end of the pay period in which the interruption of earnings occurs. Paper ROEs must be issued within five calendar days of the interruption, or of the date you become aware of it.

For end-of-season layoffs, use the correct reason code. Service Canada directs employers to use Code A when a contract ends, a season is over, or operations are temporarily shut down. Before submitting, check insurable hours and earnings against your payroll records.

Failing to issue a required ROE can be an offence under the Employment Insurance Act. The potential penalties include a fine of up to $2,000, imprisonment of up to six months, or both.

Know Your Province's Layoff Rules

Temporary layoff limits vary by province. In Ontario, a temporary layoff can generally last up to 13 weeks in any 20 consecutive weeks. Employers can extend that to up to 35 weeks in a 52-week period by meeting specific conditions, such as continuing benefits.

Certain Ontario construction employees are also exempt from the ESA's notice of termination and termination pay requirements. Collective agreements and employment contracts may still create obligations, so get advice before issuing layoffs if your rights are unclear.

In Ontario, pay out unpaid vacation pay within seven days after employment ends, or on what would have been the employee's next pay day, whichever is later.

Adjust Scheduling, Overtime, and Time Tracking

Shorter days and weather delays change how hours are worked and recorded.

• Daylight saving time ends on Sunday, November 1, 2026. Overnight shifts that cross the time change may include an extra clock hour. Make sure your timekeeping records the actual hours worked and applies the correct overtime and scheduling rules.
• Overtime thresholds vary by province and by type of work. For example, in Ontario, workers who build streets, highways, or parking lots earn overtime after 55 hours in a work week, rather than the general threshold.
• Weather days need clear policies. Minimum reporting pay rules and their exceptions differ by province, so confirm your obligations before sending crews home early.

Accurate, job-level time tracking protects both compliance and job costing when crews move between sites.

Stay Ahead of Workers' Compensation Reporting

Fall is a good time to confirm that your reported payroll matches your actual payroll before year-end.

• Ontario (WSIB): Employers that report premiums monthly must reconcile the previous year by March 31. Employers that report annually or quarterly do not need to reconcile.
• British Columbia (WorkSafeBC): Quarterly reporters reconcile the previous year's payroll by February 28. Annual reporters file their annual payroll report and payment on an assigned date in early March, which falls on March 3, 5, 7, 9, or 11.

Other boards set their own deadlines, so check yours. If you are closing out projects this fall, make sure your account is in good standing in case general contractors ask for clearance letters. Also review your provincial occupational health and safety guidance on working in cold weather.

Support Apprentices Heading to Block Release Training

Block release means an apprentice leaves work to attend full-time technical training for a set period. Many apprentices attend in the fall and winter.

When they leave, use Code J (apprentice training) in Block 16 of the ROE, not Code A.

Apprentices can claim EI during training, with some special rules:

• They need a 16-digit reference code from their province, territory, or training institution as proof of referral.
• They can apply up to seven days before their last day of work.
• Employers can offer Supplemental Unemployment Benefit plans that top up weekly earnings during training, to as much as 95% of normal weekly earnings.

Before apprentices leave, make sure their logged hours are up to date with your provincial apprenticeship authority, such as Skilled Trades Ontario or SkilledTradesBC.

Start Year-End Payroll Prep Now

• T4 and T4A deadline: T4 and T4A returns are due the last day of February. When that date falls on a weekend, they are considered on time if received by the next business day. In 2027, that makes the deadline Monday, March 1.
• Laid-off workers: If you know an employee will not be coming back in the calendar year, CRA suggests calculating their year-to-date earnings and giving them a T4 slip. For seasonal workers expected back in spring, the normal year-end filing still applies. At minimum, confirm addresses and SINs before crews leave.
• Holiday gifts: Under CRA's administrative policy, non-cash gifts and awards with a combined fair market value of $500 or less (including taxes) in the year are generally not taxable, if the conditions are met. The amount over $500 is taxable. Cash and near-cash gifts are always taxable.
• T5018 for subcontractors: T5018 returns are due six months after the end of the reporting period you have chosen.
• Remittances: Reconcile your source deduction remittances and union dues and fringe remittances before December closes.

Fall Payroll Checklist at a Glance

Frequently Asked Questions

Do I have to issue an ROE when I lay off construction workers for the winter?

Yes. A seasonal layoff is an interruption of earnings, so an ROE is required even if the worker plans to return in spring. For weekly, biweekly, or semi-monthly payrolls, electronic ROEs are due within five calendar days after the end of the pay period in which the layoff occurred. Use Code A for an end of season, end of contract, or temporary shutdown. Double-check insurable hours and earnings, because errors can slow down the worker's EI claim. The ROE is separate from provincial layoff rules. Your province may limit how long a temporary layoff can last before it becomes a termination.

Is Thanksgiving a paid statutory holiday for construction workers everywhere in Canada?

No. For provincially regulated employees, Thanksgiving is not a paid holiday in New Brunswick, PEI, Nova Scotia, or Newfoundland and Labrador. Federally regulated employees have it as a general holiday wherever they work. Even where Thanksgiving is a paid holiday, construction employees may fall under special rules. In Ontario, for example, certain construction employees who receive 7.7% (or 9.7% after five years) of wages as vacation and holiday pay are exempt from the standard public holiday entitlements. Collective agreements can also set different terms, so check them before processing holiday pay.

When do CPP and EI deductions restart after a worker reaches the maximum?

For a worker who stays with you, deductions restart on January 1. Once an employee reaches the annual maximum in their employment with you, deductions stop for the rest of the calendar year, which is why some workers see larger pay cheques in late fall. In January 2027, deductions resume at the new rates. The EI rate becomes $1.64 per $100 of insurable earnings, with maximum insurable earnings of $70,800, and the combined first-tier CPP employee rate drops to 5.75%. If a worker moves to a new employer partway through the year, the new employer starts its own deductions regardless of what the previous employer deducted.

Final Thoughts

Fall payroll isn't difficult because any single task is complicated. It's difficult because deduction limits, holiday rules, layoffs, ROEs, apprentice training, and year-end prep all land at the same time. The contractors who handle it well assign an owner to each task, confirm the rules for every jurisdiction their employees fall under, and prepare before the rush.

Start with the checklist above. Review your 2027 rate settings, map your holiday rules, and set up an ROE process before your first layoff. If your crews span several provinces or union agreements, a construction-specific payroll platform like Lumber can calculate deductions, track hours by job, and prepare ROEs and T4s from the same records.