Payroll Deductions Calculator
Paying someone on the books? See their take-home, what the hire really costs you, and exactly what to send the government on the 15th. No signup, nothing saved.
The three numbers that matter
- Their net pay — gross less CPP, EI and the income tax you hold back for them.
- Your real cost — the wage plus your CPP match and your EI share at 1.4× theirs. Gross pay is never the cost of a hire.
- Your remittance — the tax withheld plus both halves of CPP and EI, due by the 15th of the following month. Late is a penalty plus interest, and the date never moves.
Employees or subcontractors?
Most small trades outfits pay subcontractors, not employees — no CPP, no EI, no withholding, and nothing on this page applies to them. But in construction you still have to report what you paid them on a T5018. If you’re not certain which side of the line someone falls on, that’s a question for your accountant — the CRA decides by how the work is actually done, not by what the paperwork calls it.
Frequently asked
What do I have to send the CRA when I pay an employee?
Three things, combined into one payment: the income tax you withheld, both halves of CPP (the employee's and your matching share), and both halves of EI (the employee's, plus yours at 1.4 times theirs). For a regular remitter it's due by the 15th of the month after the month you paid them.
What does an employee actually cost me?
More than their gross pay. On top of the wage you pay your CPP match and your EI share (1.4× the employee's premium), and in Quebec, QPIP as well. On a typical wage that's roughly 7–8% on top of gross. This calculator shows the real number.
Is Quebec different?
Yes, and it catches people out: Quebec payroll goes to TWO governments. EI and federal tax go to the CRA; QPP, QPIP and Quebec provincial tax go to Revenu Québec. Sending it all to one is a common and expensive mistake. Pick Quebec above and the calculator splits it for you.
What happens if I remit late?
The CRA charges a penalty on the amount you were late with, and it climbs the later you are — plus interest. It's one of the easier penalties to avoid, because the date never moves: the 15th of the following month.
Is this exact enough to run payroll on?
It's a solid estimate using current federal and provincial rates — good for budgeting a hire, quoting a job, or sanity-checking a payroll run. It assumes a standard claim code and doesn't track what someone has already paid this year, so it will differ late in the year once CPP or EI maximums are reached. For the exact amount to withhold, use the CRA's free Payroll Deductions Online Calculator, or run payroll through a payroll provider.
Do I need this if I only pay subcontractors?
No. A genuine subcontractor invoices you and handles their own taxes — no CPP, EI or withholding. But if you're in construction you likely have to report what you paid them on a T5018 slip, and getting the employee-versus-contractor line wrong is expensive if the CRA disagrees. If you're unsure which one someone is, ask your accountant.
Stop guessing what you owe
LQID records your pay runs, tracks what’s owed to the CRA, and reminds you before the 15th — alongside your HST, your WSIB and your T5018 slips. Canadian cloud accounting built for owners who’d rather be on the tools.
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