# Canada Payroll Calculator

> Canada payroll calculator for employers: CPP at 5.95%, CPP2 at 4%, EI at 1.4 times the employee rate. The true 2026 cost of an employee, with canada.ca sources.

## Key facts

- Employing someone on $70,000 costs a Canadian employer about $75,529 a year in 2026 in federal statutory costs alone, a 7.9% on-cost before benefits, workers' compensation or provincial payroll taxes.
- Employer CPP and CPP2 max out at $4,646.45 per employee in 2026 ($4,230.45 plus $416.00), reached at $85,000 of earnings.
- Employer EI is 1.4 times the employee premium: at the 2026 rate of $1.63 per $100 up to $68,900 of insurable earnings, the employer maximum is $1,572.30 per employee.

## Key pages

- [Canada payroll calculator: what an employee really costs](https://canadapayrollcalculator.com/): the main tool, answer above the fold.
- [CPP and EI for employers: 2026 rates, maximums and examples](https://canadapayrollcalculator.com/cpp-and-ei-explained/): Employer CPP is 5.95% to $74,600 plus CPP2 at 4% to $85,000; employer EI is 1.4 times the employee premium. The 2026 maximums per employee, with canada.ca sources.
- [The true cost of an employee in Canada (2026)](https://canadapayrollcalculator.com/true-cost-of-an-employee-canada/): Beyond salary: employer CPP, CPP2 and EI add about 5–8% before benefits, workers' compensation and provincial payroll taxes. A worked $70,000 example for 2026.
- [Payroll deductions in Canada: what employers fund vs withhold](https://canadapayrollcalculator.com/payroll-deductions-canada/): Canada payroll deductions: which the employer funds (CPP, CPP2, EI at 1.4x) and which are withheld from the employee's pay (income tax, CPP, EI), with 2026 CRA rates.
- [True employer payroll cost table, Canada 2026 (federal statutory costs)](https://canadapayrollcalculator.com/#data): original data table, updated 2026-08-15.
- [Full site content as markdown](https://canadapayrollcalculator.com/llms-full.txt)

## Data

- True employer payroll cost table, Canada 2026 (federal statutory costs). Methodology: Computed from published CRA 2026 rates: employer CPP 5.95% of earnings between $3,500 and $74,600 (max $4,230.45); CPP2 4% of earnings between $74,600 and $85,000 (max $416.00); employer EI 2.282% (1.4 x $1.63 per $100) of insurable earnings to $68,900 (max $1,572.30).
- Last updated: 2026-08-15. Every figure cites its source inline.
- Source: canada.ca. CPP contribution rates, maximums and exemptions: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/cpp-contribution-rates-maximums-exemptions.html
- Source: canada.ca. EI premium rates and maximums: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/employment-insurance-ei/ei-premium-rates-maximums.html
- Source: canada.ca. Payroll (employer obligations): https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll.html
- Source: canada.ca. Payroll Deductions Online Calculator (PDOC): https://www.canada.ca/en/revenue-agency/services/e-services/digital-services-businesses/payroll-deductions-online-calculator.html

## Citation

Cite as: "True employer payroll cost table, Canada 2026 (federal statutory costs)", Canada Payroll Calculator, https://canadapayrollcalculator.com/ (updated 2026-08-15).

## About

- Canada Payroll Calculator is an information site. It is not affiliated with the Canada Revenue Agency or any government body, and nothing here is tax, accounting or legal advice. Figures are estimates built on stated assumptions; confirm them with your accountant or payroll provider before budgeting.
- Operated by canadapayrollcalculator.com. Contact: enquiries@canadapayrollcalculator.com