CanPay InsightsAn example
At $30 an hour, 40 hours a week, a worker in Ontario earns $62,400 a year and keeps about $48,883 after tax, CPP and EI in 2026. A cheque with 20 hours of overtime at time and a half is withheld as though that cheque were normal, so it is taxed at the bracket that pace of earning would reach, even if the rest of the year is regular hours.
When it evens out
Withholding is an estimate made one cheque at a time. Your tax return uses your actual income for the year, so extra tax withheld on overtime cheques is refunded, and too little is collected.
Common Searches
Frequently Asked Questions
Does overtime count toward CPP and EI?
Yes. Overtime is pensionable and insurable like regular pay until you reach the yearly CPP and EI maximums.
When is overtime paid at time and a half?
That is set by provincial employment standards: after 44 hours a week in Ontario, after 8 hours a day or 40 a week in British Columbia, and after 8 hours a day or 44 a week in Alberta. Federally regulated workplaces follow the Canada Labour Code.
Same team · U.S. edition
USAPay Insights
Working in the U.S. instead? Our American sister site is the same calculator, rebuilt for U.S. taxes: federal and state brackets for all 50 states and D.C., FICA, and filing status.
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