Insights
Payroll in Canada: CPP, EI, Income Tax and Employer Deadlines
Insights · By Chen ChunJie · Updated 8 November 2026
Canadian payroll requires the right deductions, employer contributions and reporting for each employee and pay period. The rules vary by province of employment, employee circumstances and remitter category. This guide explains selected 2026 figures and key deadlines for businesses that already employ staff in Canada.
Reviewed in November 2026 against CRA payroll guidance, Revenu Québec requirements and employment standards. General planning information; individual payroll calculations require current inputs.
2026 CPP and standard EI outside Quebec
| Item | Employee | Employer | Earnings range |
|---|---|---|---|
| CPP | 5.95%, max CAD 4,230.45 | 5.95%, max CAD 4,230.45 | Pensionable earnings above CAD 3,500 up to CAD 74,600 |
| CPP2 | 4%, max CAD 416 | 4%, max CAD 416 | Pensionable earnings above CAD 74,600 up to CAD 85,000 |
| EI | 1.63%, max CAD 1,123.07 | 2.282%, max CAD 1,572.30 | Insurable earnings up to CAD 68,900 |
The table applies outside Quebec, subject to contribution eligibility, annual limits and any approved EI reduction. Where Quebec payroll rules apply, QPP replaces CPP; QPIP and Quebec income tax are remitted to Revenu Québec, along with applicable employer contributions. Federal income tax and EI at the applicable Quebec rate go to the CRA. Determine the payroll province under the relevant rules, including remote-work arrangements; residence alone is not decisive.
Income tax withholding
Use the applicable payroll tables, pay frequency, taxable benefits and employee tax forms. Federal statutory rates in 2026 range from 14% to 33%; Ontario’s basic rates range from 5.05% to 13.16%, with surtax, health premium, credits and other adjustments affecting the result. Quebec income tax uses separate Revenu Québec rules and forms. Payroll withholding is not necessarily the employee’s final annual tax liability.
Already the employer and need calculations, payslips and reports? See Payroll Outsourcing in Canada. Your company retains payment, remittance and filing duties. If you want NNRoad to employ local staff, see Canada EOR; foreign nationals require an eligible employment arrangement.
Worked example: CAD 90,000 a year
| Line | CAD a year |
|---|---|
| Gross salary | 90,000.00 |
| Employee CPP | 4,230.45 |
| Employee CPP2 | 416.00 |
| Employee EI | 1,123.07 |
| Employer CPP, CPP2 and EI | 6,218.75 |
This example assumes a full year of eligible pensionable and insurable salary with one employer outside Quebec, standard EI and no contribution exemptions or proration. CAD 6,218.75 is the employer CPP, CPP2 and EI subtotal, not total employment cost. Income tax, benefits, workers’ compensation and applicable payroll taxes require separate calculation. Our Canada salary calculator provides indicative estimates; check its assumptions before budgeting.
Remittances and year-end
CRA regular remitters generally remit by the 15th of the following month. Eligible quarterly and accelerated remitters have different schedules; Quebec remittances follow Revenu Québec rules. T4 and applicable RL-1 returns and employee slips are generally due by the last day of February following the reporting year, subject to deadline extensions and special cases.
Electronic ROEs for weekly, biweekly and semi-monthly payroll are generally due within five calendar days after the relevant pay period ends. Monthly and four-weekly payroll use the earlier of that date or 15 calendar days after the interruption starts. Paper ROE rules differ. Check the Service Canada guidance; do not wait automatically for final payroll before preparing an ROE.
Provincial payroll items
Assess provincial payroll taxes, workers’ compensation coverage and rates, vacation and holiday pay, overtime and payment frequency. Ontario Employer Health Tax can reach 1.95%, but eligibility, exemptions and payroll size matter. Vacation pay also varies by jurisdiction and service; Ontario generally requires 4% below five years of employment and 6% from five years. Confirm the rules for the specific workforce rather than applying one national percentage.
FAQ: payroll in Canada
When are payroll deductions due in Canada?
CRA regular remitters generally pay by the 15th of the following month. Eligible quarterly and accelerated remitters have different due dates. Confirm your remitter category and any separate Revenu Québec requirements, including applicable weekend or public-holiday rules.
What is the maximum CPP contribution in 2026?
Outside Quebec, the 2026 maximum is CAD 4,230.45 each for employer and employee, plus up to CAD 416 each for CPP2. These figures assume full-year eligibility and earnings reaching the relevant ceilings; individual circumstances can change the calculation. Quebec uses QPP rules.
What is the EI rate in 2026?
Outside Quebec, the standard 2026 rate is 1.63% for employees and 2.282% for employers on insurable earnings up to CAD 68,900, giving annual maxima of CAD 1,123.07 and CAD 1,572.30. Quebec has a lower EI rate, and an approved employer premium reduction may apply.
When are T4 slips due?
T4 returns and employee slips are generally due by the last day of February following the calendar year reported, with applicable weekend or public-holiday extensions. Special situations, such as business closure, can have earlier deadlines.
Need support with your Canada payroll?
NNRoad prepares payroll calculations, payslips and reports from approved inputs. Your company remains the employer and approves, pays, remits and files. We help control payroll risk within the agreed scope, provided your team supplies accurate information and follows our advisers’ recommendations.
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