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 |