CanPay InsightsFor employers · 2026
Canadian Payroll Calculator
What to withhold from an employee's pay, what you add as the employer, and what to remit. Income tax comes from an engine that reproduces the CRA's T4032 payroll tables row by row.
| Withhold from employee | Employer adds | |
|---|---|---|
| Federal income tax | $205.32 | — |
| Provincial income tax | $114.70 | — |
| CPP | $129.30 | $129.30 |
| EI | $37.62 | $52.67 |
| Total | $486.94 | $181.97 |
Employee's net pay
$1,820.75
Remit to the CRA
$668.91
Cost of this pay
$2,489.66
Over the year: $60,000.00 gross costs you $64,730.95 ($4,730.95 in employer CPP and EI).
2026 rates, basic personal amounts (TD1 claim code 1), nothing deducted yet this year. Not included: provincial employer health taxes, Quebec HSF and CNESST, workers' compensation, vacation pay, benefits.
Paying yourself or checking your own pay? Use the take-home pay calculator.
Questions employers ask
How much does an employer pay on top of salary in Canada?
You match the employee's CPP dollar for dollar (5.95% of pensionable earnings above the $3,500 exemption, up to $4,230.45 in 2026), plus CPP2 (4% between $74,600 and $85,000, up to $416.00), and you pay 1.4 times the employee's EI premium (2.282% up to $1,572.30). In Quebec it is QPP instead of CPP, a lower EI rate, and QPIP. Provincial employer health taxes and workers' compensation come on top and are not included here.
When do I stop deducting CPP and EI?
When the employee's contributions for the year reach the maximum: $4,230.45 CPP, $416.00 CPP2 and $1,123.07 EI (insurable earnings $68,900) in 2026. Your matching stops on the same pay. The calculator shows which pay that is.
Is this the same as the CRA Payroll Deductions Online Calculator (PDOC)?
It uses the same method for a regular pay early in the year, and its income tax comes from an engine that reproduces the CRA T4032 payroll tables row by row. Use PDOC when an employee has TD1 claims above the basic amounts, a bonus or retroactive pay, or contributions already made with another employer this year.
Where does the money go in Quebec?
Federal income tax and EI go to the CRA. Quebec income tax, QPP and QPIP — the employee and employer shares — go to Revenu Québec, which also collects the Health Services Fund and other employer contributions not included here.