Revenue Canada Payroll Calculator

Revenue Canada Payroll Estimator

Gross Pay per Pay Period ($):

Pay Period Frequency: Weekly Bi-weekly Semi-monthly Monthly

Federal TD1 Claim Amount ($):

Provincial TD1 Claim Amount ($):

Approx. Lowest Provincial Tax Rate (%): (e.g., 5.05% for Ontario's lowest bracket)

Estimated Pay Period Breakdown

Gross Pay: $0.00

CPP Deduction: $0.00

EI Deduction: $0.00

Federal Tax: $0.00

Provincial Tax: $0.00

Net Pay: $0.00

This calculator provides an estimation based on simplified assumptions and 2024 rates. It is not an official CRA tool and should not be used for tax filing purposes. Consult a professional for accurate payroll calculations.

function calculatePayroll() { var grossPayPerPeriod = parseFloat(document.getElementById('grossPay').value); var numPayPeriods = parseFloat(document.getElementById('payFrequency').value); var federalClaimAmount = parseFloat(document.getElementById('federalClaim').value); var provincialClaimAmount = parseFloat(document.getElementById('provincialClaim').value); var provincialTaxRate = parseFloat(document.getElementById('provincialTaxRate').value); if (isNaN(grossPayPerPeriod) || grossPayPerPeriod < 0 || isNaN(numPayPeriods) || numPayPeriods <= 0 || isNaN(federalClaimAmount) || federalClaimAmount < 0 || isNaN(provincialClaimAmount) || provincialClaimAmount < 0 || isNaN(provincialTaxRate) || provincialTaxRate < 0) { alert("Please enter valid positive numbers for all fields."); return; } // 2024 Rates and Maximums (Employee Portion) var cppRate = 0.0595; var cppAnnualExemption = 3500; var cppMaxPensionableEarnings = 68500; var cppMaxAnnualContribution = 3867.50; // (68500 – 3500) * 0.0595 var eiRate = 0.0166; var eiMaxInsurableEarnings = 63200; var eiMaxAnnualContribution = 1049.12; // 63200 * 0.0166 var federalLowestTaxRate = 0.15; // Lowest federal tax bracket rate // Annualize Gross Pay var annualGrossPay = grossPayPerPeriod * numPayPeriods; // — CPP Calculation — var annualPensionableEarnings = Math.min(annualGrossPay, cppMaxPensionableEarnings); var annualContributoryEarnings = Math.max(0, annualPensionableEarnings – cppAnnualExemption); var annualCppContribution = annualContributoryEarnings * cppRate; var actualAnnualCpp = Math.min(annualCppContribution, cppMaxAnnualContribution); var cppPerPeriod = actualAnnualCpp / numPayPeriods; // — EI Calculation — var annualInsurableEarnings = Math.min(annualGrossPay, eiMaxInsurableEarnings); var annualEiContribution = annualInsurableEarnings * eiRate; var actualAnnualEi = Math.min(annualEiContribution, eiMaxAnnualContribution); var eiPerPeriod = actualAnnualEi / numPayPeriods; // — Taxable Income for Federal & Provincial (Annual) — // Simplified: Deduct CPP and EI from gross income to get taxable income var annualTaxableIncomeBeforeCredits = annualGrossPay – actualAnnualCpp – actualAnnualEi; // — Federal Tax Calculation (Simplified) — // Federal non-refundable tax credit value (15% of claim amount) var federalTaxCreditValue = federalClaimAmount * federalLowestTaxRate; // Approximate Federal Tax before credits (using lowest bracket rate as a simplification) var approxAnnualFederalTaxBeforeCredits = annualTaxableIncomeBeforeCredits * federalLowestTaxRate; // Annual Federal Tax after applying credit var annualFederalTax = Math.max(0, approxAnnualFederalTaxBeforeCredits – federalTaxCreditValue); var federalTaxPerPeriod = annualFederalTax / numPayPeriods; // — Provincial Tax Calculation (Simplified) — // Provincial non-refundable tax credit value (using input rate) var provincialTaxCreditValue = provincialClaimAmount * (provincialTaxRate / 100); // Approximate Provincial Tax before credits (using input rate as a simplification) var approxAnnualProvincialTaxBeforeCredits = annualTaxableIncomeBeforeCredits * (provincialTaxRate / 100); // Annual Provincial Tax after applying credit var annualProvincialTax = Math.max(0, approxAnnualProvincialTaxBeforeCredits – provincialTaxCreditValue); var provincialTaxPerPeriod = annualProvincialTax / numPayPeriods; // — Net Pay Calculation — var totalDeductionsPerPeriod = cppPerPeriod + eiPerPeriod + federalTaxPerPeriod + provincialTaxPerPeriod; var netPayPerPeriod = grossPayPerPeriod – totalDeductionsPerPeriod; // Display Results document.getElementById('grossPayResult').innerHTML = '$' + grossPayPerPeriod.toFixed(2); document.getElementById('cppResult').innerHTML = '$' + cppPerPeriod.toFixed(2); document.getElementById('eiResult').innerHTML = '$' + eiPerPeriod.toFixed(2); document.getElementById('federalTaxResult').innerHTML = '$' + federalTaxPerPeriod.toFixed(2); document.getElementById('provincialTaxResult').innerHTML = '$' + provincialTaxPerPeriod.toFixed(2); document.getElementById('netPayResult').innerHTML = '$' + netPayPerPeriod.toFixed(2); } // Run calculation on page load with default values window.onload = calculatePayroll;

Understanding Your Canadian Paycheck: A Payroll Estimator

Navigating your pay stub in Canada can sometimes feel like deciphering a secret code. Beyond your gross earnings, various deductions are made for taxes and government programs. Our Revenue Canada Payroll Estimator helps you understand how these deductions impact your net pay, giving you a clearer picture of your take-home earnings.

What Does This Calculator Estimate?

This tool provides an estimation of the key deductions from your gross pay for a single pay period, including:

Gross Pay: Your total earnings before any deductions.
Canada Pension Plan (CPP): A mandatory social insurance program that provides contributors with retirement, disability, and survivor benefits. Both employees and employers contribute to CPP.
Employment Insurance (EI): Another mandatory program that provides temporary financial assistance to unemployed Canadians, as well as benefits for maternity, parental, sickness, and compassionate care. Employees and employers contribute to EI.
Federal Income Tax: Tax collected by the federal government based on your taxable income and federal tax brackets.
Provincial Income Tax: Tax collected by your provincial or territorial government, also based on your taxable income and provincial tax brackets.
Net Pay: Your take-home pay after all estimated deductions.

Key Inputs Explained:

Gross Pay per Pay Period: Your total earnings for one pay cycle before any deductions.
Pay Period Frequency: How often you get paid (e.g., weekly, bi-weekly, semi-monthly, monthly). This affects how annual maximums and exemptions are prorated.
Federal TD1 Claim Amount: This is the total of your federal non-refundable tax credits, typically found on your TD1 form. The basic personal amount is the most common credit. A higher claim amount generally means less tax deducted at source.
Provincial TD1 Claim Amount: Similar to the federal TD1, this is the total of your provincial non-refundable tax credits, found on your provincial TD1 form.
Approx. Lowest Provincial Tax Rate (%): Since provincial tax rates vary significantly by province and income level, this calculator uses a simplified approach. You can input the lowest provincial tax bracket rate for your province (e.g., 5.05% for Ontario in 2024) to get a more relevant estimate. For a precise calculation, you would need to consult your province's specific tax brackets.

How CPP and EI are Calculated (2024 Rates):

Both CPP and EI have annual maximums and specific rates:

CPP: For 2024, the employee contribution rate is 5.95% on earnings between the basic exemption of $3,500 and the maximum pensionable earnings of $68,500. The maximum annual employee contribution is $3,867.50.
EI: For 2024, the employee contribution rate is 1.66% on insurable earnings up to a maximum of $63,200. The maximum annual employee contribution is $1,049.12.

These amounts are prorated based on your pay frequency to determine the deduction for each pay period, ensuring you don't over-contribute annually.

Important Considerations and Limitations:

This calculator provides an estimation and is designed for illustrative purposes. It has several simplifications:

Simplified Tax Calculation: It uses a simplified approach for federal and provincial income tax, primarily applying the lowest tax bracket rate and accounting for basic personal amounts. It does not incorporate all tax brackets, additional non-refundable tax credits, or other complex tax rules (e.g., provincial surtaxes, specific provincial credits).
No Year-to-Date Tracking: It calculates deductions for a single pay period assuming annual maximums for CPP/EI have not yet been met. A real payroll system tracks year-to-date contributions.
No Other Deductions: It does not account for other common deductions like union dues, pension plan contributions, health benefits, RRSP contributions, or other voluntary deductions.
Rates are for 2024: The CPP and EI rates, as well as the basic personal amounts used in the example, are based on 2024 figures. These change annually.

For precise payroll calculations, especially for tax filing or official purposes, always refer to the Canada Revenue Agency (CRA) official guidelines, use CRA-certified payroll software, or consult with a qualified payroll professional or accountant.

Example Calculation:

Let's use the default values to illustrate:

Gross Pay per Pay Period: $2,500
Pay Period Frequency: Bi-weekly (26 pay periods per year)
Federal TD1 Claim Amount: $15,705 (2024 Basic Personal Amount)
Provincial TD1 Claim Amount: $11,870 (2024 Ontario Basic Personal Amount)
Approx. Lowest Provincial Tax Rate: 5.05% (Ontario's lowest rate)

Based on these inputs, the calculator would estimate:

Annual Gross Pay: $2,500 * 26 = $65,000
Estimated CPP Deduction per period: ~$125.00
Estimated EI Deduction per period: ~$82.00
Estimated Federal Tax per period: ~$200.00
Estimated Provincial Tax per period: ~$100.00
Estimated Net Pay per period: ~$1,993.00

This example demonstrates how the various deductions are applied to arrive at your take-home pay for that period.