Ontario

Employers in Ontario are responsible for several mandatory costs in addition to an employee’s gross salary. These include:

1. Canada Pension Plan (CPP) Contributions: Employers match the employee’s contribution rate. For 2025, the employer’s contribution rate is 5.95% of the employee’s pensionable earnings, up to the maximum annual pensionable earnings limit.
2. Employment Insurance (EI) Premiums: Employers contribute at a rate of 1.4 times the employee’s premium. As of 2025, the employee’s premium rate is 1.58% of insurable earnings, making the employer’s contribution 2.212% of the employee’s insurable earnings, up to the annual maximum insurable earnings limit.
3. Workplace Safety and Insurance Board (WSIB) Premiums: Employers are required to pay premiums to the WSIB to cover the costs of work-related injuries and illnesses. The average premium rate varies by industry and is calculated per $100 of assessable payroll. As of 2021, the average rate in Ontario was $1.65 per $100 of payroll.
4. Employer Health Tax (EHT): Employers with annual payrolls exceeding $1 million are subject to the EHT. The tax rate is up to 1.95% on the amount of payroll exceeding this threshold.

Additionally, employers should account for other costs such as vacation pay, statutory holiday pay, and any additional benefits provided to employees. These mandatory costs typically range between 10-20% of an employee’s gross salary.