This estimate is for informational purposes only. This tool provides a rough estimate and is not a substitute for the advice of an accountant. For advice tailored to your situation, Bankeo will find you the ideal accountant for free, with no obligation.
Find an AccountantEnter the employee’s gross annual or hourly salary and your business’s industry.
The tool automatically adds mandatory employer contributions based on the province and industry, using 2026 rates.
Employer costs, employee deductions, take-home pay, and payroll tax rates as a percentage of salary.
Hiring an employee always costs more than the gross salary listed: the employer must also pay mandatory employer contributions. In Canada, these include the pension plan (QPP in Quebec, CPP/CPP elsewhere, at 5.95%, 6.30% in Quebec, plus Part 2), the employer’s share of EI (EI), and, in Quebec only, the QPIP. Added to these are an employer health tax in certain provinces (the HSF in Quebec, the EHT in Ontario and British Columbia, exempt below a certain payroll threshold) and workers’ compensation (CNESST in Quebec, WSIB in Ontario, WCB or WorkSafe elsewhere), at an average rate that varies by sector. Income tax withheld at source is not included. A clear understanding of these costs is essential for budgeting a new hire and setting compensation. The calculator applies the 2026 rates for the selected province.
It depends on the province. Across Canada, employers contribute to the pension plan (QPP in Quebec, CPP elsewhere, at 5.95%, 6.30% in Quebec, plus Tier 2) and to EI (EI). Depending on the province, an employer health tax (HSF in Quebec at 1.65% for SMEs, EHT in Ontario and British Columbia, exempt below a certain payroll threshold) and workers’ compensation (CNESST in Quebec, WSIB in Ontario, WCB or WorkSafe elsewhere). In Quebec only, the QPIP is added. The calculator applies the correct 2026 rates based on the selected province.
Certain costs depend on the business’s profile and the province. Workers’ compensation coverage (CNESST, WSIB, WCB, or WorkSafe) and certain contributions vary by industry and payroll. A high-risk business (such as construction) generally pays higher costs than a service-sector business. The employer health tax also differs from province to province. The calculator takes into account the industry and province you select.
| Contribution | Who Pays / Scope | Cap |
|---|---|---|
| Public pension plan (QPP in Quebec, CPP elsewhere), 5.95% (6.30% in Quebec) plus Tier 2 | Employer’s Share | 2026 Threshold (MGAP/YMPE): $74,600 |
| Employer Health Tax (HSF in Quebec, EHT in Ontario and British Columbia; none elsewhere) | Employer’s Share | By Province |
| Employment Insurance (EI), employer contribution, and QPIP (in Quebec only) | Employer’s Share | 2026 Threshold (EI MRA): $68,900 |
| Parental Insurance (e.g., QPIP in Quebec) | By Province | By Province |
| Health Insurance Contributions / Payroll (e.g., HSF in Quebec) | Based on payroll and industry | Varies by province and industry |
| Workplace Accidents (CNESST in Quebec, WSIB in Ontario, WCB or WorkSafe elsewhere) | By Industry | Varies by province |
| Other Employer Contributions by Province | Employer’s Share | By Province |
| Typical Total Employer Costs | Varies by province and industry | Calculated in the tool |
The exact 2026 rates and caps are applied directly in the calculator based on the selected province and sector (QPP or CPP/CPP, Employment Insurance, QPIP in Quebec, employer health tax (HSF or EHT), and workers’ compensation).
In addition to the gross salary, the employer pays employer contributions, the amount of which varies by province. Depending on the province, these contributions can represent a significant portion of the salary, particularly due to the employer health tax (HSF in Quebec, EHT in Ontario and British Columbia). Added to this are employee benefits and indirect costs. The calculator estimates the total cost based on the 2026 rates for the selected province.
Across Canada: pension plans (QPP in Quebec, CPP elsewhere, at 5.95%, 6.30% in Quebec, plus Tier 2) and employment insurance (EI). In Quebec, the following are also included: QPIP, the HSF, and the CNESST. In Ontario and British Columbia, an employer health tax (EHT) applies above a certain payroll threshold, plus workers’ compensation (WSIB, WCB, or WorkSafe). The calculator applies the correct rates based on the selected province.
The employer contributes a portion to the public pension plan: QPP in Quebec, CPP in the rest of Canada, at a rate of 5.95% (6.30% in Quebec) plus Tier 2. The 2026 earnings limit (MGAP/YMPE) is $74,600. The calculator applies the 2026 rate corresponding to the selected province.
This coverage, which is the employer’s responsibility, varies depending on the industry and the business’s history. In Quebec, it’s the CNESST; in Ontario, the WSIB; elsewhere, the WCB or WorkSafe. The rate is a variable average: a high-risk occupation (construction) costs significantly more than an office job. The calculator takes into account the industry and the province.
Some provinces levy an employer health tax calculated based on total payroll. In Quebec, this is the HSF, set at 1.65% for small and medium-sized businesses. In Ontario and British Columbia, it is the Employer Health Tax (EHT), which is exempt below a certain payroll threshold. Elsewhere, there is no such tax. The calculator applies the 2026 rate for the selected province.
Payroll source deductions are deducted from the employee’s gross pay: taxes and the employee’s share of contributions (QPP or CPP, EI, and QPIP in Quebec). Employer contributions are paid separately by the employer. The exact split between the employee’s share and the employer’s share depends on the type of contribution and the province.
It depends on the province. In Quebec, the QPIP (Quebec Parental Insurance Plan) is mandatory for employers and self-employed individuals. In the rest of Canada, parental leave is funded by Employment Insurance (EI). The calculator applies the 2026 rules for the selected province.
Bankeo connects small and medium-sized businesses with vetted accountants and specialists in payroll, HR, and employer reporting. The service is free for business owners. We understand your team and your payroll, and we connect you with accountants who can handle your payroll from start to finish.
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Read the article →Find an accountant who specializes in payroll for your business.
Read the article →Bankeo connects small and medium-sized businesses with vetted accountants who specialize in payroll and employer reporting. This service is free for business owners.
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