Payroll Calculator 2020 Ontario

Calculate Ontario payroll taxes for 2020 with this professional payroll calculator. Understand EI, CPP, and federal/provincial deductions to determine net pay.

How to Use This Calculator

Enter your gross pay amount and select the appropriate pay frequency. The calculator will compute the deductions for Employment Insurance (EI), Canada Pension Plan (CPP), and income tax (federal and provincial).

The result shows your net pay after all deductions. You can also view a breakdown of each deduction in the chart below the calculator.

Formula Used

The payroll calculator uses the following formulas for 2020 Ontario payroll:

EI Premiums = Gross Pay × 0.0168 CPP Contributions = Gross Pay × 0.0525 Federal Tax = Gross Pay × Federal Tax Rate Provincial Tax = Gross Pay × Provincial Tax Rate Net Pay = Gross Pay - (EI Premiums + CPP Contributions + Federal Tax + Provincial Tax)

Tax rates are based on the 2020 Ontario tax tables. The calculator uses progressive tax brackets for federal and provincial income tax calculations.

Worked Example

Let's calculate net pay for a gross salary of $50,000 paid weekly.

Gross Pay: $50,000
EI Premiums: $50,000 × 0.0168 = $840
CPP Contributions: $50,000 × 0.0525 = $2,625
Federal Tax: $50,000 × 20.5% (approximate) = $10,250
Provincial Tax: $50,000 × 13.16% (approximate) = $6,580
Total Deductions: $840 + $2,625 + $10,250 + $6,580 = $20,295
Net Pay: $50,000 - $20,295 = $29,705

This example shows that $50,000 gross pay results in approximately $29,705 net pay after all deductions.

FAQ

What is included in Ontario payroll taxes?: Ontario payroll taxes include Employment Insurance (EI) premiums, Canada Pension Plan (CPP) contributions, and income tax (federal and provincial).
How often should I use this calculator?: Use this calculator whenever you need to estimate net pay from gross pay, especially when preparing payroll or understanding take-home pay.
Are the tax rates accurate for 2020?: The calculator uses the 2020 tax rates and brackets. For current year calculations, check with the Canada Revenue Agency or Ontario government for updated rates.
Does this calculator account for deductions?: No, this calculator only accounts for payroll taxes. It does not include other deductions like union dues or health benefits.
Can I use this for self-employment income?: This calculator is designed for regular employment payroll. Self-employment income has different tax rules and should be calculated separately.