TOIL

Q: We have an employee who has a large TOIL balance and they’re not able to realistically bring it down, so the employer wants to pay this out to the employee.

How would you recommend this is paid?
My thinking it that it would be as additional hours, taxed as a lump sum payment.


A: As this is an agreed term you look at what was agreed first.  If nothing is in place, then I would suggest the manager talks to the employee to agree on the rate (in writing or an email so payroll has a record).  I would suggest that the ordinary hourly rate of pay is proposed and Yes when paid it would be taxed as an extra pay.

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