Employer Tax Calculator Ontario

Ontario employers must pay payroll taxes on employee wages. This calculator helps you estimate your payroll tax obligations based on your payroll amounts and tax rates.

How to Use This Calculator

To calculate your Ontario employer payroll taxes:

Enter your total payroll amount for the period (e.g., monthly, quarterly, or annual).
Select the applicable payroll tax rate from the dropdown menu.
Click "Calculate" to see your estimated payroll tax.
Review the result and use it for budgeting or tax planning.

The calculator provides an estimate based on current Ontario payroll tax rates. For exact figures, consult the Canada Revenue Agency or your accountant.

Formula Used

The Ontario employer payroll tax is calculated using the following formula:

Employer Payroll Tax = Payroll Amount × Payroll Tax Rate

Where:

Payroll Amount - Total wages paid to employees during the period
Payroll Tax Rate - Current Ontario payroll tax rate (varies by year)

Note: This calculator uses the most recent Ontario payroll tax rates. For the most current rates, check the Canada Revenue Agency website or consult your accountant.

Worked Example

Let's calculate the employer payroll tax for a company with $100,000 in monthly payroll using the 2023 Ontario payroll tax rate of 1.6%.

Employer Payroll Tax = $100,000 × 1.6% = $1,600

In this example, the employer would owe $1,600 in payroll taxes for the month.

Frequently Asked Questions

What is Ontario employer payroll tax?

Ontario employer payroll tax is a tax levied on wages paid to employees. It funds provincial programs and services.

How is Ontario employer payroll tax calculated?

The tax is calculated by multiplying your total payroll by the current Ontario payroll tax rate.

Where can I find the current Ontario payroll tax rate?

The current rate can be found on the Canada Revenue Agency website or by consulting your accountant.