Employer Payroll Cost Calculator
What does an employee really cost? See the true annual cost of hiring in Ontario — salary plus employer CPP, CPP2 and EI — using 2026 rates.
Typical for hourly/contract roles; salaried pay usually already includes paid time off.
Your WSIB premium rate, if applicable — varies by industry rate group.
True annual cost
$64,731
+$4,731 (8%) on top of salary
- Gross salary
- $60,000
- Employer CPP
- $3,362
- Employer EI
- $1,369
- Total / yr
- $64,731
Employer cost only — not the employee’s take-home pay. Uses official 2026 CPP, CPP2 and EI figures; excludes EHT (small payrolls under $1M are exempt). Verify before payroll filing.
Set your business up to hire — the right way
Before you add payroll, make sure your business is properly incorporated with a CRA business and payroll (RP) account. We handle Ontario registration and setup so you can hire with confidence.
Register your business →Payroll costs — common questions
- How much does an employee cost beyond their salary in Ontario?
- On top of gross salary, an Ontario employer pays CPP (5.95%, matching the employee, up to $4,230.45 in 2026), CPP2 (4% on earnings between $74,600 and $85,000, up to $416), and EI at 1.4× the employee rate (2.28%, up to about $1,572). Vacation pay (4% minimum) and WSIB premiums may apply too — often adding roughly 10–14% to salary.
- What are the 2026 CPP and EI rates?
- For 2026: CPP is 5.95% on pensionable earnings from $3,500 up to the $74,600 ceiling; CPP2 adds 4% on earnings between $74,600 and $85,000. EI employee premiums are 1.63% up to $68,900 of insurable earnings, and employers pay 1.4× that. Employers match CPP dollar-for-dollar.
- Do I have to pay the Employer Health Tax (EHT)?
- In Ontario, EHT only applies once your total annual payroll exceeds the $1,000,000 exemption, so most small businesses with a few employees pay no EHT. This calculator leaves EHT out for that reason.
- Does this calculate my employee’s take-home pay?
- No — this tool shows the employer’s cost of employment, not the employee’s net pay. Take-home pay depends on federal and Ontario income-tax withholdings and personal tax credits, which aren’t included here.
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