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Employer payroll cost calculator 2026

Enter a yearly salary to see the employer's share of CPP or QPP, EI premiums and, in Quebec, QPIP premiums, and the total cost of the job.

It is a starting point for budgeting a hire. Benefits, provincial employer health taxes and workers' compensation premiums vary by employer and are not included.

How it's calculated

The employer matches the employee's CPP: 4.95% plus 1% on earnings between $3,500 and $74,600, and 4% between $74,600 and $85,000.
Employer EI is 2.282% of insurable earnings up to $68,900, or 1.82% in Quebec.
In Quebec the employer also pays QPIP at 0.602% on earnings up to $103,000.

An example

A $60,000 salary outside Quebec costs $3,361.75 of employer CPP and $1,369.20 of employer EI, so the total cost is $64,730.95 a year.

Frequently asked questions

Does the employer pay CPP2?

Yes. The employer matches the employee's second additional contribution on earnings between $74,600 and $85,000.

Why is employer EI higher than the employee's?

The employer rate is 2.282% against 1.63% for the employee, so the employer pays 1.4 times as much.

Is vacation pay included?

No. Vacation pay is part of the employee's pay. Add it to the salary if you want to include it.

Key terms

Employer contributions: Amounts the employer pays on top of the salary, separate from what is deducted from the employee.
QPIP: Quebec Parental Insurance Plan, paid by employees and employers in Quebec.

Up-to-date official data

Data checked against the official source on October 14, 2026.

We check the official sources automatically, every day.

Canada Revenue AgencyT4127 Payroll Deductions Formulas, 122nd edition (January 1, 2026)

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