Payroll Calculator Canada 2025
Calculate employee paycheck deductions, total employer cost, and compare contractor vs employee arrangements for all provinces.
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Your total annual employment income before deductionsProvince determines your provincial tax rate
How often you receive a paycheque
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Estimates only. Actual deductions depend on TD1 claims, benefits, and other factors.
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How to Use This Calculator
Tab "Employee Paycheck"
Enter your annual salary, select your province and pay frequency. See your net pay per period after federal tax, provincial tax, CPP, and EI deductions.
Tab "Employer Cost"
Enter the employee's salary, workers compensation rate (varies by industry), and vacation pay percentage. See the total cost to employ someone including all employer-paid contributions.
Tab "Contractor vs Employee"
Compare the net income of an employee at a given salary versus a contractor at a given hourly rate. See the true difference in take-home pay and total cost to the business.
The Formulas
Employee deductions:
Net pay = Gross − Federal tax − Provincial tax − CPP1 − CPP2 − EI
Employer mandatory costs:
CPP1 employer: matches employee (5.95%, max $4,034)
CPP2 employer: matches employee (4%, max $396)
EI employer: 1.4 × employee rate (2.296%, max $1,508)
Workers comp: varies (1-5% of payroll)
Vacation pay: minimum 4% (6% after 5+ years in some provinces)
Total employer cost:
Salary + Employer CPP + Employer EI + WC + Vacation + Benefits
Net pay = Gross − Federal tax − Provincial tax − CPP1 − CPP2 − EI
Employer mandatory costs:
CPP1 employer: matches employee (5.95%, max $4,034)
CPP2 employer: matches employee (4%, max $396)
EI employer: 1.4 × employee rate (2.296%, max $1,508)
Workers comp: varies (1-5% of payroll)
Vacation pay: minimum 4% (6% after 5+ years in some provinces)
Total employer cost:
Salary + Employer CPP + Employer EI + WC + Vacation + Benefits
Example
Tech Company Hiring in Ontario — $90,000 Salary
Employee CPP (1+2)$4,430/year
Employee EI$1,077/year
Employer CPP (matching)$4,430/year
Employer EI (1.4×)$1,508/year
Workers Comp (2%)$1,800/year
Vacation Pay (4%)$3,600/year
Total employer cost$101,338/year (12.6% overhead)
Frequently Asked Questions
Most employers must remit payroll deductions by the 15th of the month following the pay period. Large employers (average monthly remittances over $25,000) must remit up to 4 times per month. Late remittances incur penalties of 3-10% plus interest.
Vacation pay is an employer cost, not a deduction from the employee's pay. The minimum is 4% of wages (equivalent to 2 weeks). Some provinces increase this to 6% after 5+ years of service. Vacation pay accrues and is paid when the employee takes vacation or upon termination.
Quebec has its own pension plan (QPP at 6.4% instead of CPP's 5.95%), parental insurance (QPIP: employer 0.692%, employee 0.494%), and health services fund (HSF: 1.65-4.26% employer). EI rates are reduced for Quebec. These make Quebec payroll slightly more complex.
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