Cal11 calculator
Search calculator...

Ontario Payroll Tax Calculator 2014

Reviewed by Calculator Editorial Team

Calculate Ontario payroll taxes for 2014 with this accurate tax calculator. Understand EI, CPP, and income tax deductions for employees and employers.

How Ontario Payroll Taxes Work

Ontario payroll taxes consist of three main components: Employment Insurance (EI), Canada Pension Plan (CPP), and Ontario income tax. These deductions are withheld from employee paychecks and remitted to the government.

Note: This calculator uses 2014 tax rates and thresholds. For current year calculations, use the latest version of this calculator.

Employer vs. Employee Contributions

Both employers and employees contribute to payroll taxes. Employers pay the full amount for EI and CPP, while employees pay a portion of their CPP contribution. Income tax is entirely withheld from employee paychecks.

Taxable Income Calculation

The base amount for payroll tax calculations is the employee's taxable income. This is calculated by subtracting certain deductions from the employee's total earnings.

2014 Ontario Tax Rates

In 2014, Ontario had progressive income tax rates that applied to both employees and employers. The rates were:

Ontario Income Tax Rates (2014):

  • 15% on the first $41,675 of taxable income
  • 20% on the next $41,675
  • 26% on the next $83,350
  • 29% on the next $100,000
  • 33% on amounts over $265,075

The EI and CPP rates were fixed for 2014:

EI Rate: 1.63% of insurable earnings (up to $53,100 maximum)

CPP Rate: 4.95% for employees, 9.9% for employers

Calculation Method

The Ontario payroll tax calculator uses the following steps to determine total payroll taxes:

  1. Calculate Ontario income tax based on taxable income and progressive rates
  2. Calculate EI premiums based on insurable earnings
  3. Calculate CPP contributions for both employee and employer
  4. Sum all deductions to get total payroll taxes

Total Payroll Taxes = Ontario Income Tax + EI Premiums + CPP Contributions

Insurable Earnings

For EI calculations, insurable earnings are the lesser of the employee's total earnings or the maximum insurable earnings limit ($53,100 in 2014).

Worked Example

Let's calculate payroll taxes for an employee with $60,000 in taxable income:

  1. Ontario income tax:
    • $41,675 × 15% = $6,251.25
    • $41,675 × 20% = $8,335.00
    • $16,650 × 26% = $4,339.00
    • Total income tax = $6,251.25 + $8,335.00 + $4,339.00 = $18,925.25
  2. EI premiums:
    • $60,000 × 1.63% = $978.00
  3. CPP contributions:
    • Employee: $60,000 × 4.95% = $2,970.00
    • Employer: $60,000 × 9.9% = $5,880.00
    • Total CPP = $2,970.00 + $5,880.00 = $8,850.00
  4. Total payroll taxes = $18,925.25 + $978.00 + $8,850.00 = $28,753.25

Note: This example shows the total payroll taxes for the employer. Employees would receive a net paycheck after these deductions.

FAQ

What are the 2014 Ontario payroll tax rates?
The 2014 rates included 15-33% progressive income tax, 1.63% EI, and 4.95% (employee) / 9.9% (employer) CPP.
How is taxable income calculated for payroll taxes?
Taxable income is the employee's total earnings minus certain deductions like RRSP contributions and union dues.
Are payroll taxes the same for all Ontario employees?
No, taxes vary based on individual taxable income and the fixed rates for EI and CPP.
Can employers deduct payroll taxes from their business expenses?
Yes, payroll taxes are deductible business expenses for Ontario employers.
Where can I find official 2014 payroll tax information?
The Canada Revenue Agency and Ontario Ministry of Finance publish official tax documents.