Canada employer cost calculator

What a Canadian employee really costs: wages plus the employer's CPP and EI shares and the provincial employer tax of the selected province — and in Quebec, the employer's QPP and QPIP shares, the Health Services Fund and the labour-standards contribution. Computed by the Canada engines.

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Result — Ontario, Canada — $60,000/employee — 1 employee

Total employer cost$64,730.95

Employer taxes$4,730.95

Wages$60,000.00

Wages: $60,000.00
Employer CPP + EI: $4,730.95
Provincial employer tax: $0.00
Workers' compensation (not modelled): $0.00

Every line: amount, explanation and source. Explanations open line by line.
Line	Per year
Wages Why this line? Gross pay for the pay period, before any deduction. Why this rate: Set by the employment contract; every Canadian payroll deduction below is computed from it. What changes it: Hours worked, salary level, bonuses and taxable benefits. Source: CRA — T4032 Payroll Deductions Tables 2026, Section A (Chart 1, CPP/EI tables) — verified 2026-10-25.	$60,000.00
Employer CPP Why this line? Employer CPP/CPP2: the employer matches the employee contribution dollar for dollar (5.95% to the YMPE, 4.00% CPP2 to the YAMPE). Why this rate: CRA — CPP contribution rates 2026. What changes it: Employee earnings level; stops at the same ceilings. Source: CRA — T4032 Payroll Deductions Tables 2026, Section A (Chart 1, CPP/EI tables) — verified 2026-10-25.	$3,361.75
Employer CPP2 Why this line? Employer CPP/CPP2: the employer matches the employee contribution dollar for dollar (5.95% to the YMPE, 4.00% CPP2 to the YAMPE). Why this rate: CRA — CPP contribution rates 2026. What changes it: Employee earnings level; stops at the same ceilings. Source: CRA — T4032 Payroll Deductions Tables 2026, Section A (Chart 1, CPP/EI tables) — verified 2026-10-25.	$0.00
Employer EI (1.4x) Why this line? Employer EI: 1.4 times the employee premium (2.282% outside Quebec; 1.82% in Quebec on the reduced employee rate). Why this rate: Employment Insurance Act — employer multiple 1.4 (CRA EI tables 2026). What changes it: Employee insurable earnings; stops at the same maximum. Source: CRA — T4032 Payroll Deductions Tables 2026, Section A (Chart 1, CPP/EI tables) — verified 2026-10-25.	$1,369.20
Ontario Employer Health Tax Why this line? Provincial employer payroll tax where one exists: Ontario Employer Health Tax, BC Employer Health Tax, or Manitoba's Health and Post-Secondary Education Tax Levy — each with its own exemption and rate structure, computed on total payroll. Why this rate: Ontario Ministry of Finance (EHT), Government of B.C. (EHT), Manitoba Finance (HE Levy). What changes it: Total payroll size — exemptions and notch rates make this a total-payroll calculation, not a per-employee one. NL's HAPSET is BLOCKED in this version (see limits doc). Source: Provincial employer payroll taxes 2026 — verified 2026-10-25.	$0.00
Workers compensation (not modeled) Why this line? Workers compensation premiums are NOT included: in every province they are set by industry classification and employer experience rating, so no single rate exists. Why this rate: Provincial workers compensation boards (classification-based by law). What changes it: Industry classification and claims history — only the board's own assessment is exact. The employer total shown is a lower bound. Source: Provincial employer payroll taxes 2026 — verified 2026-10-25.	$0.00
Total employer cost Why this line? Total employer cost: wages plus every employer-side line above. Why this rate: Sum of the rounded lines (structured result contract — screen, PDF and tests can never diverge). What changes it: Wages, headcount, province, and total payroll (for payroll-tax thresholds). Source: CRA — T4032 Payroll Deductions Tables 2026, Section A (Chart 1, CPP/EI tables) — verified 2026-10-25.	$64,730.95

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Total employer cost

$64,730.95
Wages + employer CPP/EI + the provincial employer tax of the selected province. Workers' compensation is not modelled and is excluded.

Cost per employee

$64,730.95
Total cost divided by headcount.

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Methodology, limits and sources

Rates verified on 2026-10-25 (primary sources listed per line).

Provincial workers compensation premiums are classification-based and NOT modeled; the total is a lower bound (documented limit).

Canada engines, employer side. CRA provinces: employer CPP/EI mirror the employee shares with the EI employer multiplier (1.4×); the provincial employer tax is each province's own program from the data pack (for example Ontario's Employer Health Tax, British Columbia's Employer Health Tax, Manitoba's Health and Post Secondary Education Tax Levy, Newfoundland and Labrador's Health and Post Secondary Education Tax) — provinces without such a tax show the line at $0. Quebec: the Revenu Québec sub-engine computes employer QPP, EI at the Quebec rate, QPIP, the Health Services Fund, the labour-standards contribution, and flags the 1% training obligation (FDRCMO) when total payroll exceeds $2M. Workers' compensation premiums are not modelled anywhere in the Canada module.

Data status

Employer parameters: primary-verified in the Canada data pack — CRA T4127 and each provincial program's own publications; Quebec's Health Services Fund and related parameters against Revenu Québec's TP-1015.G-V guide.

Known limits

Workers' compensation (WSIB, WorkSafeBC, CNESST and their equivalents) is classification-based and is not modelled: every total on this page excludes it. On Quebec results, read the CNESST and training-obligation line explanations before relying on a total.