Canadian Payroll Calculator
Calculate total employer payroll costs including CPP, CPP2, EI, and provincial health taxes. 2026 rates for all 13 provinces and territories.
Employer Payroll Inputs
Employer-focused calculator
This calculator shows what you pay as an employer on top of salary. For employee take-home pay, use our Salary Calculator.
Employer Cost Summary
Per-Employee Breakdown
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Understanding Canadian Employer Payroll Costs
Every Canadian employer pays mandatory contributions on top of each employee's gross salary. These statutory costs are non-negotiable and apply regardless of company size or industry. Understanding them is essential for accurate budgeting, hiring decisions, and compensation planning.
Canada Pension Plan (CPP) Employer Contributions
Employers match their employees' CPP contributions dollar for dollar. In 2026, the employer rate is 5.95% on pensionable earnings between the $3,500 basic exemption and the $73,200 maximum pensionable earnings ceiling. The maximum employer contribution is $4,147.05 per employee. CPP2, introduced in 2024, adds 4% on earnings between $73,200 and $81,200.
Employment Insurance (EI) Employer Premiums
Employers pay 1.4 times the employee EI premium rate. In 2026, the employer rate is 2.296% on insurable earnings up to $65,700, with a maximum annual premium of $1,508.63. Quebec employers pay a reduced federal EI rate (1.834%) because the province operates its own parental insurance plan (QPIP) at an additional employer rate of 0.692%.
Provincial Health and Payroll Taxes
Five provinces levy employer health or education taxes on payroll: Ontario (EHT at up to 1.95%), Quebec (Health Services Fund at 1.65-4.26%), Manitoba (2.15%), British Columbia (1.95%), and Newfoundland and Labrador (2%). Most have exemptions for smaller payrolls, so these costs primarily affect mid-size and large employers.
2026 Employer Contribution Rates by Province
| Contribution | Rate | Max Annual | Notes |
|---|---|---|---|
| CPP Employer | 5.95% | $4,147.05 | On earnings $3,500 - $73,200 |
| CPP2 Employer | 4.00% | $320.00 | On earnings $73,200 - $81,200 |
| EI Employer (outside QC) | 2.296% | $1,508.63 | 1.4x employee rate, max insurable $65,700 |
| EI Employer (QC) | 1.834% | $1,204.34 | Reduced rate, Quebec runs QPIP |
| QPIP Employer (QC only) | 0.692% | -- | Quebec Parental Insurance Plan |
| Ontario EHT | 0.98 - 1.95% | No max | Exempt under $490K payroll (eligible employers) |
| Quebec HSF | 1.65 - 4.26% | No max | Rate varies by total payroll |
| Manitoba HE Tax | 2.15% | No max | On payroll over $2.25M |
| BC Employer Health Tax | 1.95% | No max | On payroll over $1.5M |
| NL HAPSET | 2.00% | No max | On payroll over $2M |
Rates shown are for 2026. Workers' compensation premiums vary by industry and are not included above. Consult your provincial WCB for specific rates.
Frequently Asked Questions
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