Payroll Calculator Online Ontario
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Reviewed by Calculator Editorial Team
Calculate Ontario payroll taxes, Canada Pension Plan (CPP), Employment Insurance (EI), and net pay with this online payroll calculator. Get accurate results with detailed formulas and assumptions.
How to Use This Calculator
Enter your gross pay amount, select the pay frequency, and click "Calculate" to see your deductions and net pay. The calculator shows:
- Canada Pension Plan (CPP) contribution
- Employment Insurance (EI) premium
- Income Tax (federal and provincial)
- Total deductions
- Net pay
The calculator uses current Ontario tax rates and assumes no additional deductions or credits. For more precise results, consult a payroll professional.
Formulas Used
Canada Pension Plan (CPP)
CPP is calculated at 5.1% of the insurable earnings, up to the maximum insurable earnings limit.
Formula: CPP = Gross Pay × 0.051
Employment Insurance (EI)
EI is calculated at 1.66% of the insurable earnings, up to the maximum insurable earnings limit.
Formula: EI = Gross Pay × 0.0166
Income Tax
Income tax is calculated using Ontario's progressive tax brackets. Federal tax is calculated separately.
Formula: Income Tax = Federal Tax + Provincial Tax
Note: These formulas are simplified. Actual payroll calculations may include additional deductions, credits, and tax adjustments.
Worked Example
Let's calculate payroll for a gross pay of $2,500 paid weekly.
| Deduction | Amount |
|---|---|
| Canada Pension Plan (CPP) | $127.50 |
| Employment Insurance (EI) | $41.50 |
| Federal Income Tax | $375.00 |
| Provincial Income Tax | $250.00 |
| Total Deductions | $1,104.00 |
| Net Pay | $1,396.00 |
This example shows how deductions reduce the net pay from $2,500 to $1,396.
Frequently Asked Questions
What is included in Ontario payroll taxes?
Ontario payroll taxes include Canada Pension Plan (CPP), Employment Insurance (EI), and income tax (federal and provincial). Additional deductions may apply depending on your situation.
How often should I calculate payroll?
Payroll should be calculated for each pay period (weekly, bi-weekly, monthly) to ensure accurate deductions and net pay.
Are there additional deductions not shown in this calculator?
Yes, this calculator shows basic deductions. Additional deductions may include union dues, health benefits, retirement contributions, and other employer or employee deductions.