Ontario Payroll Calculator 2017

Use this Ontario Payroll Calculator 2017 to estimate your payroll costs including taxes and deductions. This tool helps employers understand the total cost of employing staff in Ontario for the 2017 tax year.

How the Ontario Payroll Calculator Works

The Ontario Payroll Calculator 2017 estimates the total payroll cost for an employee by accounting for gross wages, employment insurance (EI), Canada Pension Plan (CPP), and income tax deductions.

Key components of the calculation include:

Gross wages paid to the employee
Employment Insurance premiums (EI)
Canada Pension Plan contributions (CPP)
Income tax deductions

The calculator provides a breakdown of these costs to help employers budget for payroll expenses.

Payroll Calculation Formula

The total payroll cost is calculated using the following formula:

Total Payroll Cost = Gross Wages + EI Premiums + CPP Contributions + Income Tax

Where:

Gross Wages = Hourly Rate × Hours Worked × Number of Employees
EI Premiums = Gross Wages × EI Rate (1.66%)
CPP Contributions = Gross Wages × CPP Rate (4.95%)
Income Tax = Gross Wages × Ontario Income Tax Rate (varies by tax bracket)

Note: The Ontario income tax rate used in this calculator is based on the 2017 tax tables.

Worked Example

Let's calculate the payroll cost for a single employee working 40 hours per week at $20/hour.

Gross Wages = $20 × 40 × 1 = $800
EI Premiums = $800 × 1.66% = $13.28
CPP Contributions = $800 × 4.95% = $39.60
Income Tax = $800 × 20% (assuming 20% tax bracket) = $160
Total Payroll Cost = $800 + $13.28 + $39.60 + $160 = $1,012.88

This example shows that the total payroll cost for this employee is $1,012.88.

Payroll Cost Comparison

Compare the payroll costs for different hourly rates and hours worked:

Hourly Rate ($)	Hours/Week	Gross Wages	Total Payroll Cost
$15	35	$525	$620.25
$20	40	$800	$1,012.88
$25	45	$1,125	$1,375.50

This comparison shows how payroll costs increase with higher hourly rates and more hours worked.

Frequently Asked Questions

What is included in the Ontario Payroll Calculator 2017?: The calculator includes gross wages, EI premiums, CPP contributions, and income tax deductions for the 2017 tax year.
How accurate is the Ontario Payroll Calculator?: The calculator provides an estimate based on standard payroll calculations. For exact figures, consult a payroll professional or use official government payroll forms.
Can I use this calculator for multiple employees?: Yes, the calculator can be used for multiple employees by adjusting the number of employees field.
Are there any additional deductions not included in this calculator?: This calculator focuses on the core payroll costs. Additional deductions like union dues or benefits would need to be calculated separately.
Where can I find official payroll guidelines for Ontario?: For official payroll guidelines, refer to the Canada Revenue Agency website.