Canadian Payroll Calculator 2023

If you have a job, you receive your salary through the monthly, bi-weekly, or weekly payroll. But do you know what payroll is or how payroll calculation is handled? How do you calculate wages to find out your take-home pay? How do you calculate payroll deductions? We know how, and with our online payroll calculator, you can learn as well!Payroll is the process where the employer calculates your wages and distributes them to the employees. The company withholds taxes, CPP, and EI contributions from the paycheque, and the remaining amount is paid to the employees. These withholdings are also known as payroll deductions.In Canada, there are several types of payroll deductions to keep in mind, including:
  • Federal and provincial income taxes 
  • CPP(contribution to the Canada Pension Plan)
  • EI (contribution to the Employment Insurance program)
The federal income tax rates depend on the level of annual income you receive. Income tax rates range between 15% and 33%. The provincial income tax deduction also depends on your annual income, but the rates vary from province to province.Contributions to the Pension Plan guarantee that the contributor or their family will receive a partial replacement of earnings in case of retirement, disability, or death. Residents of Quebec are contributing to the Quebec Pension Plan (QPP), while all other Canadian workers are contributing to the Canada Pension Plan (CPP).The contribution to the Employment Insurance program assures that if you lose your job, you’ll receive a temporary income while you are looking for new employment. The program also provides benefits to workers who take time off due to life events (e.g pregnancy). The EI tax rate may change from year to year. Plus, it’s important to remember that the EI tax rate is different in Quebec than the rest of the country.

Usage of the Payroll Calculator

We know that understanding payroll deductions and income tax rates can be difficult. This is why we offer our payroll deductions calculator to help simplify the process. Using this payroll calculator, you can quickly and easily find out your deductions, compare salaries between different years, and more. Follow these steps to calculate your wages, deductions, and more.
  1. Select the year: you can use the payroll calculator to compare your salaries between 2017 and 2023
  2. Select the province: the calculator is updated with the tax rates of all Canadian provinces and territories
  3. Enter your pay rate: the amount can be hourly, daily, weekly, monthly or even annual earnings
  4. Enter the number of hours worked a week: this is required information only if you selected the hourly salary option
  5. Enter the number of pay periods
Please note that the calculator on this site is for informative purposes only and is not intended to replace professional advice.If you want to use the tax calculator instead, click here.
Tax year
Province
Pay rate
Pay Rate Unit
Number of pay periods in the year
Standard Hours / week
  • 2.50%* interest rate
  • No everyday banking fee
  • Unlimited day-to-day transactions
  • No minimum balance required
  • Free Interac e-transfers®
  • Free EFTs
  • CDIC Member

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