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% |
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 |