Payroll Deductions Online Calculator: Who Qualifies and What You Get
Learn how to use this online tool to accurately calculate employee tax, CPP, and EI deductions for your business.
This online tool helps employers determine the correct amount of money to withhold from an employee's pay for taxes and other mandatory contributions.
Who it's for
This tool is designed for employers who need to calculate specific employee deductions, such as income tax, Canada Pension Plan (CPP), and Employment Insurance (EI).
What you get
You get an accurate calculation of the "source deductions" required from an employee's salary. This helps ensure you are following the correct rules for payroll withholding.
What it costs you
Using the tool is free, but it requires your time. You will need to manually enter your employee's salary data every time you run a pay period.
The catch to know
Tax and deduction rates often change at the start of a new year. You must always make sure you are using the calculator for the current year to avoid incorrect calculations.
How to apply
- Visit the official government portal.
- Enter the required employee salary and pay information.
- Review the calculated deduction amounts.
- Use these figures to process your payroll.