Payroll Calculator Ontario 2017

Calculate Ontario payroll taxes for 2017 with this comprehensive payroll calculator. It includes calculations for Employment Insurance (EI), Canada Pension Plan (CPP), federal income tax, and Ontario provincial tax. The calculator provides a detailed breakdown of deductions and net pay.

How to Use This Calculator

To use the Ontario payroll calculator for 2017, follow these steps:

Enter the employee's gross salary in the "Gross Salary" field.
Select the appropriate pay frequency from the dropdown menu.
Click the "Calculate" button to generate the payroll breakdown.
Review the results, which include deductions and net pay.

The calculator will display the following information:

Gross salary
Employment Insurance (EI) premiums
Canada Pension Plan (CPP) contributions
Federal income tax
Ontario provincial tax
Total deductions
Net pay

Formula Used

The payroll calculator uses the following formulas to calculate deductions and net pay:

Employment Insurance (EI)

EI premiums are calculated as 1.63% of the employee's gross salary.

Formula: EI = Gross Salary × 0.0163

Canada Pension Plan (CPP)

CPP contributions are calculated as 4.95% of the employee's gross salary.

Formula: CPP = Gross Salary × 0.0495

Federal Income Tax

Federal income tax is calculated using progressive tax brackets for 2017.

Formula: Federal Tax = Sum of (Gross Salary × Tax Rate for each bracket)

Ontario Provincial Tax

Ontario provincial tax is calculated using progressive tax brackets for 2017.

Formula: Ontario Tax = Sum of (Gross Salary × Tax Rate for each bracket)

Net Pay

Net pay is calculated by subtracting all deductions from the gross salary.

Formula: Net Pay = Gross Salary - (EI + CPP + Federal Tax + Ontario Tax)

Worked Example

Let's calculate the payroll for an employee with a gross salary of $50,000 paid weekly.

Gross Salary: $50,000
EI Premiums: $50,000 × 0.0163 = $815
CPP Contributions: $50,000 × 0.0495 = $2,475
Federal Income Tax: $12,298 (using 2017 tax brackets)
Ontario Provincial Tax: $6,147 (using 2017 tax brackets)
Total Deductions: $815 + $2,475 + $12,298 + $6,147 = $21,735
Net Pay: $50,000 - $21,735 = $28,265

For weekly pay, divide the annual net pay by 52 weeks: $28,265 ÷ 52 ≈ $543.56

Frequently Asked Questions

What taxes are included in the Ontario payroll calculator?

The calculator includes Employment Insurance (EI), Canada Pension Plan (CPP), federal income tax, and Ontario provincial tax.

Can I use this calculator for other provinces?

This calculator is specifically designed for Ontario payroll taxes in 2017. For other provinces, you would need a different calculator with the appropriate tax rates.

How often should I update my payroll calculations?

Payroll tax rates and brackets can change annually. It's a good practice to review and update your payroll calculations each year to ensure accuracy.

What if my employee has additional deductions?

This calculator provides a basic payroll breakdown. Additional deductions such as union fees, health benefits, or retirement contributions would need to be calculated separately and added to the total deductions.