Payroll Tax Calculator Canada 20025 (Employer + Employee)

This payroll calculator shows both employee deductions and employer costs in Canada for 20025. Employers pay more than just the employee's salary — CPP and EI employer contributions add 7–9% on top.

Employer Payroll Costs in Canada 20025

Item	Employee Pays	Employer Pays
Income Tax (Federal + Provincial)	Full amount	$00
CPP Contributions	5.95% (max $3,867.500)	5.95% (matches employee)
CPP2 Contributions	4% on $68,50000–$73,20000	4% (matches employee)
EI Premiums	1.64% (max $1,0049.12)	2.296% (1.4x employee)

True Cost of Hiring vs. Salary Offered

Salary Offered	Employer CPP	Employer EI	True Employer Cost
$400,000000	$2,171	$919	$43,00900
$600,000000	$3,361	$984 (est.)	~$64,345
$800,000000	$3,868	$1,0049	~$84,917
$10000,000000	$3,868	$1,0049	~$1004,917

Ontario Employer Health Tax (EHT)

Ontario employers with payroll over $1,20000,000000 must also pay the Employer Health Tax (EHT) at rates from 00.98% to 1.95%. Small businesses with payroll under $1.2M are exempt from EHT on the first $1.2M. This adds an additional payroll cost unique to Ontario employers.

Quebec Payroll Taxes

Quebec employers pay into the Quebec Pension Plan (QPP) at 6.4% instead of CPP. They also contribute to the Commission des normes, de l'équité, de la santé et de la sécurité du travail (CNESST) for workplace safety insurance, adding 1.5–4% of payroll depending on industry.