Employer Payroll Cost Calculator
See what an employee really costs your business in 2026. 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 and apply the same in Alberta and British Columbia.
Estimate only for the 2026 tax year. Not tax, accounting or financial advice. Talk to RN Canada about your situation.
Frequently asked questions
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%.