Enter the salary you plan to pay and see what the hire actually costs once the employer CPP match, the 1.4× EI premium and, where it applies, Ontario Employer Health Tax are added. Rates are current for the 2025 tax year.
The role
How it works. On top of salary, an employer matches the employee's CPP and CPP2 contributions dollar for dollar and pays 1.4 times the employee's EI premium. Ontario employers whose annual payroll has used up the $1,000,000 EHT exemption also pay 1.95% Employer Health Tax on wages above it — pick that option to add EHT on this salary.
True annual cost
$0
$0 (0%) in employer costs on top of salary
Excludes WSIB / workers-compensation premiums, benefits and vacation accrual — all of which add more.
An estimate is a starting point. Get your real number.
This calculator uses published rates. Your actual position depends on the credits, deductions and structure behind your numbers.
- A professional tax accountant reviews your figures, not a formula
- Fixed quote before any work starts
- You pay after you approve the filing
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Send your details and we'll confirm your exact position.
What sits on top of the salary
The salary is the floor, not the cost. Every employer matches the employee's CPP — 5.95% up to the $71,300 ceiling plus the 4% CPP2 band to $81,200 — and pays 1.4 times the employee's EI premium; the 1.4 factor exists because employers control layoffs, the main driver of EI claims. On the default $80,000 salary those two alone add roughly $5,891 a year. Ontario's Employer Health Tax then applies at 1.95% once a private-sector employer's annual Ontario payroll passes the $1,000,000 exemption — below that, most small employers pay no EHT at all, which is why the calculator leaves it off by default.
If you are weighing a hire, run the same salary through the CPP & EI calculator to see both sides of the statutory contributions, and let our payroll service set up the withholding, remittances and year-end slips so the true cost never surprises you.
What this calculator does not cover
Workers-compensation premiums (WSIB in Ontario) are mandatory in most industries and vary widely by province and rate class, so they are not modelled here — nor are group benefits, vacation pay accrual, statutory holidays, recruiting or payroll administration, all of which push the real cost higher. Quebec payroll runs on its own plans and levies. For a hire-by-hire budget that includes those pieces, talk to our payroll team.
| Item | Rate |
|---|---|
| CPP match | 5.95% + 4% CPP2 band |
| EI | 1.4 × employee premium |
| Ontario EHT (over exemption) | 1.95% |
Rates reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Federal and provincial rates change annually, and this tool is an estimate for planning rather than tax advice. Confirm current figures before relying on them for a filing.
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