Ontario payroll deductions in 2026: CPP, EI, and tax

For 2026, CPP is 5.95% from the employee and 5.95% from the employer on pensionable earnings between $3,500 and $74,600, to a maximum of $4,230.45 each. CPP2 is an extra 4% each on earnings between $74,600 and $85,000, capped at $416 each. EI outside Quebec is 1.63% of insurable earnings up to $68,900 ($1,123.07 employee maximum). The employer EI premium is 1.4 times the employee amount.

Owners

A shareholder who only takes dividends is not on payroll and does not pay CPP or EI on those dividends. A shareholder who takes a salary is an employee: withhold tax, CPP, and usually not EI unless they have opted into special benefits. The right mix is a tax decision, not a bookkeeping habit. Dividends do not create new RRSP room. Salary does.

Use the payroll calculator for a single-cheque estimate, then let us set the RP account up properly. Remittance deadlines depend on your average monthly withholding. Missing them is one of the faster ways to get a CRA arrears letter.