Taxes, payroll and business
True employee cost
Estimate an annual hiring budget: salary, employer contributions, benefits, expenses and equipment. Compare that budget with cost per productive hour and first-year cash outlay.
2026 contributions · Official sources checked October 1, 2026
Your employee
Annual salary includes paid vacation and statutory holidays. In hourly mode, all paid hours enter salary. Paid nonproductive hours only reduce useful hours: salary is never added twice.
Additional employer contributions
Annual amounts attributable to this employee after exemptions. HSF/EHT, workers’ compensation and other contributions also depend on total payroll and industry. A default zero does not mean an exemption. Enter benefits and expenses separately to avoid counting them twice.
Benefits are added to the budget without changing the contribution base. A taxable benefit may require a specific payroll calculation outside this tool’s scope.
Annual allocation = initial purchase ÷ useful life. A management assumption without tax depreciation, residual value or automatic replacement. First-year cash includes the full purchase once.
Your budget
Estimated full annual cost
$67,613
- Monthly average
- $5,634
- Cost per productive hour
- $37
- Productive hours per year
- 1,840
- First-year cash outlay · purchase included
- $69,213
- Annual cash excluding new equipment
- $66,813
Annual cost breakdown
- Annual salary
- $60,000
- CPP / QPP, including second contribution
- $3,560
- Employer EI
- $1,092
- Employer QPIP
- $361
- Health · HSF / EHT
- $0
- Workers’ compensation
- $0
- Other contributions
- $0
- Annual benefits
- $1,200
- Annual recurring expenses
- $600
- Annual equipment allocation
- $800
Each displayed amount uses whole dollars. The total reconciles to cents before display.
Method, assumptions and sources
The shared Payroll costs engine calculates employer CPP/QPP, CPP2/QPP2, EI and QPIP. Each contribution rounds to cents. Recurring expenses and benefits are added to payroll cost, then the equipment allocation. Summary amounts display whole dollars while calculations retain cents.
2026 annual estimate for one employee, one employer and one province of employment; fully pensionable and insurable remuneration and year-round contributions. Annual limits/exemptions are not prorated to the weeks entered: this budget does not replace partial-year payroll calculations. Age exceptions, province transfers, reduced EI rates, withheld income tax, taxation of benefits, severance and other obligations are not modelled.
Benefits are added to the budget without changing the contribution base. A taxable benefit may require a specific payroll calculation outside this tool’s scope.
Annual allocation = initial purchase ÷ useful life. A management assumption without tax depreciation, residual value or automatic replacement. First-year cash includes the full purchase once.