Payroll Calculator Ontario 2022
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Reviewed by Calculator Editorial Team
Calculate your Ontario payroll taxes for 2022 with this free payroll calculator. This tool helps you determine the total payroll deductions including federal and provincial income taxes, Canada Pension Plan (CPP), Employment Insurance (EI), and other mandatory deductions.
How to Use This Calculator
Using this payroll calculator is simple:
- Enter your gross pay amount in the "Gross Pay" field
- Select your employment type (Full-time or Part-time)
- Click the "Calculate" button
- Review the results showing your net pay and deductions
The calculator will automatically compute the following deductions:
- Federal income tax
- Ontario provincial income tax
- Canada Pension Plan (CPP)
- Employment Insurance (EI)
- Total deductions
- Net pay
Formula Used
The payroll calculator uses the following formulas to calculate deductions:
Federal Income Tax
Federal income tax is calculated based on the progressive tax brackets for 2022. The formula is:
Federal Tax = Gross Pay × Federal Tax Rate
The federal tax rates for 2022 are:
- 15% for the first $50,192 of taxable income
- Additional 20.5% on the portion of taxable income over $50,192
Ontario Provincial Income Tax
Ontario provincial income tax is calculated using progressive tax brackets for 2022:
Provincial Tax = Gross Pay × Ontario Tax Rate
The Ontario tax rates for 2022 are:
- 5.05% for the first $44,753 of taxable income
- 9.15% for the next $44,753 (up to $89,506)
- 11.16% for the next $55,250 (up to $144,756)
- 12.16% for the next $66,251 (up to $211,007)
- 13.16% for taxable income over $211,007
Canada Pension Plan (CPP)
CPP is calculated as:
CPP = Gross Pay × CPP Rate
The CPP rate for 2022 is 5.1% for employees and employers combined.
Employment Insurance (EI)
EI is calculated as:
EI = Gross Pay × EI Rate
The EI rate for 2022 is 1.66% for employees and employers combined.
Net Pay Calculation
The net pay is calculated by subtracting all deductions from the gross pay:
Net Pay = Gross Pay - (Federal Tax + Provincial Tax + CPP + EI)
Worked Example
Let's calculate the payroll for an employee with a gross pay of $50,000:
| Deduction | Calculation | Amount |
|---|---|---|
| Federal Income Tax | $50,000 × 15% = $7,500 | $7,500 |
| Ontario Provincial Tax | $50,000 × 5.05% = $2,525 | $2,525 |
| Canada Pension Plan (CPP) | $50,000 × 5.1% = $2,550 | $2,550 |
| Employment Insurance (EI) | $50,000 × 1.66% = $830 | $830 |
| Total Deductions | $7,500 + $2,525 + $2,550 + $830 = $13,405 | $13,405 |
| Net Pay | $50,000 - $13,405 = $36,595 | $36,595 |
For this example, the employee would receive $36,595 after all deductions.
Ontario Payroll Tax Rates 2022
The following table shows the Ontario payroll tax rates for 2022:
| Tax Type | Rate | Maximum Taxable Income |
|---|---|---|
| Federal Income Tax | 15% | $50,192 |
| Federal Income Tax (Additional) | 20.5% | Over $50,192 |
| Ontario Provincial Tax (Bracket 1) | 5.05% | $44,753 |
| Ontario Provincial Tax (Bracket 2) | 9.15% | $44,753 to $89,506 |
| Ontario Provincial Tax (Bracket 3) | 11.16% | $89,506 to $144,756 |
| Ontario Provincial Tax (Bracket 4) | 12.16% | $144,756 to $211,007 |
| Ontario Provincial Tax (Bracket 5) | 13.16% | Over $211,007 |
| Canada Pension Plan (CPP) | 5.1% | All income |
| Employment Insurance (EI) | 1.66% | All income |
Note
These rates are subject to change and should be verified with the Canada Revenue Agency (CRA) or Ontario government for the most current information.
Frequently Asked Questions
What is included in Ontario payroll taxes?
Ontario payroll taxes include federal and provincial income taxes, Canada Pension Plan (CPP), Employment Insurance (EI), and other mandatory deductions.
How do I calculate my net pay?
Use this payroll calculator by entering your gross pay and selecting your employment type. The calculator will automatically compute your net pay after all deductions.
Are the tax rates in this calculator up-to-date?
This calculator uses the 2022 tax rates. For the most current rates, you should verify with the Canada Revenue Agency (CRA) or Ontario government.
What is the difference between gross pay and net pay?
Gross pay is the total amount earned before any deductions. Net pay is the amount received after all payroll deductions including taxes and contributions.
Can I use this calculator for self-employment income?
This calculator is designed for regular employment payroll. Self-employment income has different tax rules and should be calculated separately.