Employer Payroll Cost Calculator
See what an employee really costs your business in 2026. The CRA's own Payroll Deductions Online Calculator (PDOC) is built for calculating an individual pay run; this tool is not affiliated with the CRA and instead adds up the employer's full annual cost of a salary. On top of gross salary, an employer pays its share of CPP (5.95% up to the $74,600 ceiling, after the $3,500 exemption), second-tier CPP2 (4% between $74,600 and $85,000), and Employment Insurance at 1.4 times the employee premium. These contributions are federal. On top of them, British Columbia and Ontario levy an Employer Health Tax (EHT) on firm-wide payroll above a $1,000,000 exemption, while Alberta has none — enter your total annual payroll to see the marginal EHT this salary adds. Once an employee's earnings clear the ceilings, the 2026 employer maximums are $4,230.45 CPP, $416.00 CPP2, and $1,572.30 EI, for a maxed-out employer total of $6,218.75 per employee.
Estimate only for the 2026 tax year. Not tax, accounting or financial advice. Talk to RN Canada about your situation.
Frequently asked questions
No. This tool is not the CRA's PDOC and is not affiliated with the CRA. PDOC calculates the deductions on one pay run; this calculator instead totals the employer's fully-loaded annual cost of a salary, including EI at 1.4x and any provincial Employer Health Tax.
On top of gross pay, employers fund their share of CPP (5.95%), CPP2 (4% on earnings between $74,600 and $85,000) and EI at 1.4x the employee premium. In BC and Ontario, an Employer Health Tax may also apply. The calculator shows the fully-loaded annual cost.
CPP2 is the second additional Canada Pension Plan contribution introduced in 2024. In 2026 it is 4% on earnings between the first ceiling ($74,600) and the second ceiling ($85,000), paid by both employee and employer.
Yes, via the Employer Health Tax (EHT). CPP, CPP2 and EI are federal and identical nationwide, but Alberta charges no EHT, while British Columbia and Ontario both apply an EHT on payroll above a $1,000,000 exemption: BC at 1.95% (or 5.85% in the notch up to $1,500,000) and Ontario at 1.95%.
For 2026, once an employee's earnings clear the ceilings, the employer pays a maximum of $4,230.45 CPP, $416.00 CPP2, and $1,572.30 EI (1.4x the employee premium), for a maxed-out employer total of $6,218.75 per employee.