Payroll Tax Calculator 2017 Ontario

This payroll tax calculator helps you determine the total payroll taxes for employees in Ontario for the 2017 tax year. It calculates Employment Insurance (EI), Canada Pension Plan (CPP), and federal income tax deductions.

How to Use This Calculator

To calculate your payroll taxes:

Enter the employee's gross salary
Select the appropriate tax year (2017)
Click "Calculate" to see the results

The calculator will display the total payroll taxes, including EI, CPP, and federal income tax deductions. You can also view a breakdown of each tax component.

Formula Used

The payroll tax calculation for Ontario in 2017 includes three main components:

Employment Insurance (EI)

EI premiums are calculated at a flat rate of 1.63% of the employee's gross salary.

Formula: EI = Gross Salary × 0.0163

Canada Pension Plan (CPP)

CPP contributions are calculated at a flat rate of 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 Income Tax = Gross Salary × Federal Tax Rate

Where Federal Tax Rate is determined by the progressive tax brackets.

Note: This calculator uses the 2017 tax rates and brackets for Ontario. Tax laws and rates may change in subsequent years.

Worked Example

Let's calculate the payroll taxes for an employee with a gross salary of $50,000 in 2017.

Tax Type	Calculation	Amount
Employment Insurance (EI)	$50,000 × 1.63%	$815.00
Canada Pension Plan (CPP)	$50,000 × 4.95%	$2,475.00
Federal Income Tax	Calculated using 2017 brackets	$7,287.50
Total Payroll Taxes		$10,577.50

For this employee, the total payroll taxes would be $10,577.50, which includes $815 for EI, $2,475 for CPP, and $7,287.50 for federal income tax.

Tax Rate Comparison

Here's a comparison of the payroll tax rates for different salary levels in 2017:

Gross Salary	EI (1.63%)	CPP (4.95%)	Federal Income Tax	Total Payroll Taxes
$30,000	$489.00	$1,485.00	$3,247.50	$5,221.50
$50,000	$815.00	$2,475.00	$7,287.50	$10,577.50
$75,000	$1,222.50	$3,712.50	$11,312.50	$16,247.50
$100,000	$1,630.00	$4,950.00	$15,337.50	$21,917.50

This table shows how payroll taxes increase with higher salaries, with federal income tax being the largest component for higher earners.

Frequently Asked Questions

What payroll taxes are included in this calculator?

This calculator includes Employment Insurance (EI), Canada Pension Plan (CPP), and federal income tax deductions for Ontario employees.

Are provincial taxes included in this calculation?

No, this calculator only includes federal payroll taxes. Provincial payroll taxes are not included.

Can I use this calculator for other years besides 2017?

This calculator specifically uses the 2017 tax rates and brackets. For other years, you would need to use a calculator with updated tax information.

What is the difference between gross salary and net salary?

Gross salary is the total amount earned before any deductions. Net salary is the amount remaining after payroll taxes and other deductions have been subtracted.

How often should I calculate payroll taxes?

You should calculate payroll taxes whenever there are changes to employee salaries or when tax laws change. It's also good practice to review payroll taxes annually.