Ontario Payroll Calculator Hourly

Calculate the total payroll cost for hourly employees in Ontario, including taxes, CPP, EI, and other deductions. This calculator helps employers estimate their payroll expenses accurately.

How to Use This Calculator

To calculate the total payroll cost for an hourly employee in Ontario:

Enter the employee's hourly wage
Enter the number of hours worked per week
Select the pay frequency (weekly, bi-weekly, or monthly)
Click "Calculate" to see the results

The calculator will display the gross pay, deductions, and net pay for the selected period. You can also view a breakdown of the deductions in the chart below.

Formula Used

The total payroll cost is calculated using the following formula:

Total Payroll Cost = (Hourly Wage × Hours Worked) + Deductions

Where deductions include:

CPP (Canada Pension Plan) - 5.95% of earnings
EI (Employment Insurance) - 1.66% of earnings
Income Tax - Based on Ontario tax brackets
Other deductions as applicable

This formula provides an estimate of the total payroll cost for an hourly employee in Ontario. Actual payroll costs may vary based on specific circumstances and additional deductions.

Worked Example

Let's calculate the payroll cost for an employee earning $20/hour who works 35 hours per week, paid bi-weekly.

Gross pay = $20 × 35 = $700
CPP = $700 × 5.95% = $41.65
EI = $700 × 1.66% = $11.62
Income Tax (assuming 20.5% marginal rate) = $700 × 20.5% = $143.50
Total Deductions = $41.65 + $11.62 + $143.50 = $196.77
Net Pay = $700 - $196.77 = $503.23
Total Payroll Cost = $700 + $196.77 = $896.77

For bi-weekly pay, the total payroll cost would be approximately $896.77.

Frequently Asked Questions

What is included in the payroll cost?

The payroll cost includes the employee's gross pay plus deductions for CPP, EI, income tax, and other applicable deductions.

How often should I use this calculator?

You can use this calculator whenever you need to estimate payroll costs, such as when hiring new employees, adjusting wages, or planning budgets.

Is this calculator accurate for all Ontario employees?

This calculator provides an estimate based on standard Ontario payroll deductions. For precise payroll calculations, consult a payroll professional or use dedicated payroll software.