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Payroll Calculator Ontario Hourly

Reviewed by Calculator Editorial Team

Calculate Ontario hourly payroll with our free payroll calculator. Compute gross pay, deductions, and net pay for employees in Ontario.

How to Use This Calculator

This payroll calculator helps you determine an employee's pay based on hourly rate, hours worked, and applicable deductions in Ontario. Follow these steps:

  1. Enter the employee's hourly wage
  2. Input the number of hours worked
  3. Select the applicable deductions (CPP, EI, income tax)
  4. Click "Calculate" to see the results

The calculator will show you the gross pay, deductions, and net pay after all deductions.

Formula Used

The payroll calculation follows these steps:

Gross Pay = Hourly Rate × Hours Worked Deductions = (Gross Pay × CPP Rate) + (Gross Pay × EI Rate) + (Gross Pay × Income Tax Rate) Net Pay = Gross Pay - Deductions

Current Ontario rates (2023):

  • CPP (Canada Pension Plan): 5.1%
  • EI (Employment Insurance): 1.6%
  • Income Tax: Varies by tax bracket (2023 rates apply)

Worked Example

Let's calculate pay for an employee earning $25/hour who worked 40 hours in a week.

Example Calculation

Hourly Rate: $25.00

Hours Worked: 40

Gross Pay: $25 × 40 = $1,000.00

Deductions:

  • CPP: $1,000 × 5.1% = $51.00
  • EI: $1,000 × 1.6% = $16.00
  • Income Tax: $1,000 × 20.5% (example rate) = $205.00

Total Deductions: $51 + $16 + $205 = $272.00

Net Pay: $1,000 - $272 = $728.00

Frequently Asked Questions

What deductions are included in this calculator?
The calculator includes CPP, EI, and income tax deductions. Additional deductions like union fees or health benefits would need to be calculated separately.
Are the tax rates up-to-date?
The calculator uses 2023 tax rates. For current rates, consult the Canada Revenue Agency website.
Can I use this for part-time employees?
Yes, simply enter the actual hours worked for part-time employees.
Does this calculator account for overtime?
No, this calculator assumes regular hours. Overtime would need to be calculated separately using the appropriate overtime rate.
Is this calculator accurate for all Ontario employees?
The calculator provides a good estimate but may not account for all specific deductions or tax situations. Always verify with a payroll professional for critical payroll calculations.