Employer Remittance Calculator
Gross Wages ($): CPP Contribution Rate (%): EI Contribution Rate (%): Income Tax Withheld ($): Calculate Employers have a critical obligation beyond paying wages — they must accurately remit payroll taxes to the government. These remittances include the employer’s share of Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and the employee’s withheld income…
Employers have a critical obligation beyond paying wages — they must accurately remit payroll taxes to the government. These remittances include the employer’s share of Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and the employee’s withheld income tax. Failing to calculate and remit the correct amounts can lead to fines, audits, and legal issues.
To help streamline this vital part of payroll, we’ve created a simple and effective Employer Remittance Calculator. With just a few inputs, it tells you exactly what you owe for each payroll cycle.
Formula
The remittance calculation is typically based on three key components:
- CPP Employer Contribution = Gross Wages × CPP Rate (%)
- EI Employer Contribution = Gross Wages × EI Rate (%)
- Total Remittance = Income Tax Withheld + CPP Employer + EI Employer
This gives a quick and accurate snapshot of what you, as an employer, must send to the tax authority on behalf of your employees.
How to Use the Employer Remittance Calculator
To use the calculator:
- Enter Gross Wages: The total wages paid to the employee for the pay period.
- Enter CPP Rate: This is usually a fixed percentage set by your country’s revenue agency (e.g., 5.95% in Canada as of 2025).
- Enter EI Rate: Again, this varies, but Canada’s rate for employers is often 1.4× the employee’s contribution (e.g., 2.212% in 2025).
- Enter Income Tax Withheld: This is the amount you withheld from the employee’s paycheck for federal/provincial income tax.
Click Calculate, and you’ll get:
- The employer’s share of CPP
- The employer’s share of EI
- The total remittance due
Example
Let’s walk through an example:
- Gross Wages: $3,000
- CPP Rate: 5.95%
- EI Rate: 2.212%
- Income Tax Withheld: $400
CPP Employer = 3000 × 0.0595 = $178.50
EI Employer = 3000 × 0.02212 = $66.36
Total Remittance = 400 + 178.50 + 66.36 = $644.86
That means you owe the tax agency $644.86 for this payroll period.
✅ FAQs
1. What is an employer remittance?
It’s the total amount an employer must submit to the government, which includes both employee deductions and employer contributions for CPP, EI, and income tax.
2. Do employers pay CPP and EI for employees?
Yes. Employers must match CPP contributions and contribute 1.4× the employee EI contribution in Canada.
3. Is income tax included in employer remittance?
Yes, but it’s the tax withheld from the employee, not an extra employer cost.
4. How often do I remit payroll taxes?
Most employers remit monthly, but new businesses may remit quarterly, and large employers may remit more frequently.
5. What happens if I remit late?
Late remittances can incur penalties and interest. Timely remittance is critical.
6. Does this calculator apply to US businesses?
It’s designed with Canadian payroll in mind, but the structure is similar for US FICA and Medicare taxes if rates are adjusted.
7. What are current CPP and EI rates?
For 2025, CPP is 5.95% and EI is 1.58% for employees. Employer EI is typically 2.212%. Always verify current rates.
8. Are bonuses and commissions included in gross wages?
Yes, all taxable earnings are included when calculating remittances.
9. Can I include health benefits in the remittance?
No, health benefits may be taxable, but they’re not remitted like CPP or EI.
10. Is this calculator accurate for multiple employees?
Use it per employee or aggregate totals if you have consistent rates and pay.
11. What deductions are not included in this calculator?
It does not include union dues, retirement savings plans, or custom deductions unless they are part of payroll taxes.
12. What if the employee is exempt from CPP or EI?
If an employee is exempt (e.g., due to age or job type), you can set the rate to 0%.
13. Can I use this for remitting to CRA?
Yes, it’s specifically designed to reflect what Canadian employers remit to the CRA.
14. Is this calculator compliant with CRA requirements?
It mirrors CRA logic but should not be a replacement for formal accounting software.
15. Do I remit the entire CPP and EI?
Yes, you remit both the employee’s portion (deducted from their pay) and the employer’s matching portion.
16. Does remittance include provincial tax?
Yes, if you’ve withheld provincial income tax, include it in the “Income Tax Withheld” input.
17. Should I round the results?
Yes, you can round to the nearest cent or dollar based on your payroll system.
18. Can I download this data?
Not from this version, but you can manually copy and paste it into your records.
19. How do I verify that I’ve remitted correctly?
Your payroll system or CRA account should match your remittance figures with your reported payroll.
20. What happens during an audit?
Accurate remittance records are critical. An audit will look for consistency between wages, deductions, and remitted amounts.
Conclusion
Payroll remittance is a legal and financial responsibility no employer can ignore. With many moving parts — wages, taxes, contributions — it’s easy to make mistakes or miscalculate. That’s where the Employer Remittance Calculator becomes essential.
It simplifies your responsibilities and ensures you stay compliant, avoid penalties, and maintain accurate payroll records. Whether you run payroll in-house or manage it manually, this calculator is a valuable tool for every pay period. Use it regularly to stay on top of your tax obligations and maintain financial peace of mind.