Employer Payroll Costs Summary Contribution Employer Rate 2025 Maximum CPP 5.95% ~$4,034 CPP2 (enhanced) 4% ~$396 EI ~4.1% ~$1,335 Provincial Health Tax 0-4.26% Varies QPIP (Quebec) 0.692% ~$500
CPP Contributions 2025 CPP Rates Component Rate Maximum Basic exemption - $3,500 YMPE - $71,300 CPP rate (employer) 5.95% $4,034.10 YAMPE - $81,200 CPP2 rate (employer) 4% $396
CPP Calculation Step Formula CPP earnings Salary - $3,500 (to YMPE) CPP contribution Earnings × 5.95% CPP2 earnings Earnings between YMPE and YAMPE CPP2 contribution CPP2 earnings × 4%
Example ($75,000 Salary) Item Amount CPP earnings $71,300 - $3,500 = $67,800 CPP contribution $67,800 × 5.95% = $4,034 CPP2 earnings $75,000 - $71,300 = $3,700 CPP2 contribution $3,700 × 4% = $148 Total CPP (employer) $4,182
EI Premiums 2025 EI Rates Item Value Employee rate 1.64% (outside Quebec) Employer rate Employee × 1.4 = 2.30% Maximum insurable earnings $65,700 Max employee premium $1,077.48 Max employer premium $1,508.47
Quebec EI Rates Item Value Employee rate 1.31% Employer rate 1.31% × 1.4 = 1.83%
Example ($75,000 Salary) Item Amount Insurable earnings $65,700 (capped) Employer premium $65,700 × 2.30% = $1,508
Quebec-Specific Deductions QPIP (Quebec Parental Insurance) Party Rate Maximum Earnings Employee 0.494% $98,000 Employer 0.692% $98,000
Example Item Amount QPIP earnings $75,000 Employer QPIP $75,000 × 0.692% = $519
Provincial Health Taxes Ontario Employer Health Tax (EHT) Payroll Size Rate $0 - $490,000 0.98% (exemption for small) $490,001 - $980,000 1.101% - 1.829% Over $980,000 1.95%
Employers remit payroll taxes — CPP, EI, and income tax withholdings — to the CRA on a schedule based on total annual remittances. Eligible employers with <$5M payroll get exemption on first $490K.
Quebec Health Services Fund (HSF) Payroll Size Rate $0 - $1M 1.25% - 4.26% $1M - $7M Graduated Over $7M Up to 4.26%
Manitoba Health and Education Levy Payroll Size Rate $0 - $2.25M Exempt $2.25M - $4.5M 4.3% on excess Over $4.5M 2.15%
BC Employer Health Tax Payroll Size Rate $0 - $500,000 Exempt $500,001 - $1.5M 2.925% on excess Over $1.5M 1.95%
Total Employer Cost Calculator Example: $75,000 Employee (Ontario) Item Amount Salary $75,000.00 CPP (employer) $4,034.10 CPP2 (employer) $148.00 EI (employer) $1,508.47 EHT (if applicable) $735.00 Total Employer Cost $81,425.57 Overhead % 8.6%
Example: $75,000 Employee (Quebec) Item Amount Salary $75,000.00 QPP (employer) $4,034.10 QPP2 (employer) $148.00 EI (employer) $1,208.00 QPIP (employer) $519.00 HSF $937.50 Total Employer Cost $81,846.60 Overhead % 9.1%
Employer Cost by Salary Ontario (Small Employer) Salary CPP+CPP2 EI Total Overhead % $50,000 $2,764 $1,150 $3,914 7.8% $75,000 $4,182 $1,508 $5,690 7.6% $100,000 $4,430 $1,508 $5,938 5.9% $150,000 $4,430 $1,508 $5,938 4.0%
Excludes EHT for small employers.
With EHT (Larger Employer) Salary CPP+CPP2 EI EHT Total % $50,000 $2,764 $1,150 $975 $4,889 9.8% $75,000 $4,182 $1,508 $1,463 $7,153 9.5% $100,000 $4,430 $1,508 $1,950 $7,888 7.9%
WSIB/WCB Premiums Workers’ Compensation Province Rate Range Ontario (WSIB) $0.14 - $15+ per $100 payroll BC (WorkSafeBC) $0.15 - $10+ per $100 Alberta (WCB) $0.15 - $8+ per $100
Rates vary by industry classification.
Example (Office Work) Item Rate Typical office rate $0.20 per $100 $75,000 salary $150/year
Vacation Pay Minimum Requirements Province Minimum After Years Ontario 4% 0-5 years Ontario 6% 5+ years BC 4% 0-5 years BC 6% 5+ years Alberta 4% 0-5 years Alberta 6% 5+ years
Vacation Pay Cost Salary 4% Vacation 6% Vacation $50,000 $2,000 $3,000 $75,000 $3,000 $4,500 $100,000 $4,000 $6,000
True Cost of an Employee All-In Cost Example ($75,000) Item Amount Base salary $75,000 CPP/QPP (employer) $4,182 EI (employer) $1,508 Provincial health tax $735 WSIB/WCB $150 Vacation pay (4%) $3,000 Benefits (estimated) $3,000 Total Cost $87,575 Overhead 16.8%
Payroll Calendar Key Dates Date Action 15th (monthly) Remit payroll deductions End of February T4/T4A slips to employees End of February T4 Summary to CRA Year-end True-up premiums
Remittance Frequency Employer Type Frequency Small (<$25K remittances) Quarterly Regular Monthly Large (>$50K) Twice monthly Very large Weekly
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