About Payroll Calculator
Calculate employee net pay for Canada (CPP, CPP2, EI, provincial tax) or the US (FICA, FUTA, state withholding). See employer costs and remittance totals. Free for 2025.
How to use
- Select the country — Canada or United States. This switches the entire calculation: Canada applies CPP/CPP2, EI, and federal plus provincial income tax; the US applies FICA (Social Security and Medicare), FUTA, and federal plus state income tax withholding.
- Choose the employee's province (Canada) or state (US). Each Canadian province has its own income tax brackets, and Quebec uses QPP/QPIP instead of CPP/EI. In the US, state income tax varies widely — nine states (Texas, Florida, Washington and others) have no state income tax at all, while California also withholds SDI.
- Enter the employee's gross pay and select the pay frequency: weekly, bi-weekly, semi-monthly, or monthly. The frequency determines how annual thresholds — CPP/EI ceilings in Canada, the Social Security wage base in the US — are prorated to each pay period. A $60,000 salary works out to $2,307.69 bi-weekly.
- Review the deduction breakdown. For a Canadian employee you'll see CPP (5.95% on earnings between $3,500 and $71,300), CPP2 (4% on $71,300–$81,900), EI (1.64% up to $65,700), and federal plus provincial income tax. For a US employee you'll see Social Security (6.2% up to the $176,100 wage base), Medicare (1.45% on all wages, plus 0.9% over $200,000), and federal plus state income tax.
- Check the employer cost breakdown. Canadian employers match CPP dollar-for-dollar (5.95%), pay EI at 1.4× the employee rate (2.296%), and match CPP2 (4%). US employers match FICA exactly (6.2% Social Security + 1.45% Medicare = 7.65%) and pay FUTA — 6% on the first $7,000 of wages, typically reduced to an effective 0.6% after the state unemployment credit.
- View the remittance total — the amount you send to the tax authority each period. In Canada this goes to the CRA (employee deductions plus the employer's CPP/EI share); regular remitters pay by the 15th of the following month. In the US, FICA and withheld federal income tax are deposited with the IRS monthly or semi-weekly, while FUTA is filed annually on Form 940.
- Run each employee individually or compare scenarios. Switch province or state to see how location changes the bottom line — a Quebec employee costs roughly 2–3% more than the same salary in Ontario, and a California employee carries higher state tax and SDI than one in no-tax Texas.
Frequently asked questions
How are Canadian payroll deductions calculated?
Canadian payroll deductions have four parts: (1) CPP at 5.95% on pensionable earnings between $3,500 and $71,300, maxing at $4,034.10/year; (2) EI at 1.64% on insurable earnings up to $65,700, maxing at $1,077.48/year; (3) federal income tax using progressive brackets from 15% to 33%; and (4) provincial income tax at rates that vary by province. Each pay period the calculator applies these to the period's gross pay, prorated from the annual thresholds. The employer remits all employee deductions plus its matching contributions to the CRA.
How is US payroll tax calculated?
US payroll tax has three main parts: (1) FICA — Social Security at 6.2% on wages up to the $176,100 wage base, plus Medicare at 1.45% on all wages (with an extra 0.9% on wages above $200,000); (2) federal income tax withholding using the IRS standard deduction and progressive brackets from 10% to 37%; and (3) state income tax for the 41 states that levy one. The calculator prorates the Social Security wage base to your pay frequency and applies the correct bracket table for the selected state.
What is CPP2?
CPP2 (the second additional CPP enhancement) was introduced in 2024 to raise future retirement benefits. It applies a 4% contribution on earnings between the first ceiling ($71,300 YMPE) and the second ceiling ($81,900 YAMPE). Both employee and employer contribute 4%, with a maximum of $422 each per year. CPP2 only affects employees earning above $71,300. Quebec has an equivalent QPP2 with the same rates and thresholds.
What is FUTA and who pays it?
FUTA (the Federal Unemployment Tax Act) funds the US unemployment insurance system. It is paid entirely by the employer — never withheld from the employee — at a base rate of 6% on the first $7,000 of each worker's annual wages. Most employers receive a credit of up to 5.4% for paying their state unemployment tax (SUTA) on time, which lowers the effective FUTA rate to 0.6% — a maximum of $42 per employee per year. FUTA is reported annually to the IRS on Form 940.
What is the employer's share of payroll deductions?
Canadian employers pay CPP matching at 5.95% (identical to the employee, maxing at $4,034.10/year), EI at 2.296% (1.4× the employee rate, maxing at $1,508.47/year), and CPP2 matching at 4% (maxing at $422/year) — adding roughly $5,500–$6,000 to a $60,000 salary. US employers pay matching FICA of 7.65% (6.2% Social Security + 1.45% Medicare), FUTA at an effective 0.6% on the first $7,000, plus state unemployment insurance (SUTA). In both countries, the true cost of an employee is meaningfully higher than their gross pay.
Does this work for US payroll?
Yes — US payroll has equal support. Select United States as the country and the calculator applies FICA (6.2% Social Security up to the $176,100 wage base and 1.45% Medicare on all wages), federal income tax withholding using the IRS standard deduction and bracket tables, and state income tax for states that have one. Employer costs include matching FICA and FUTA. California adds State Disability Insurance (SDI), and the nine no-income-tax states are handled automatically.
How often do I remit payroll taxes — CRA or IRS?
In Canada, CRA remittance frequency depends on your average monthly withholding: regular remitters (under $25,000/month) pay by the 15th of the following month, quarterly remitters (under $3,000/month) pay quarterly, and accelerated remitters (over $25,000/month) pay within a few days of payday. In the US, withheld federal income tax and FICA are deposited with the IRS on a monthly or semi-weekly schedule set by your prior-year lookback amount, reported quarterly on Form 941; FUTA is filed annually on Form 940. Late remittances incur penalties in both countries. After each run, generate official pay records with the
Pay Stub Generator.
How are tax-free amounts handled — basic personal amount vs. standard deduction?
Canada and the US both shield a portion of income from tax, but differently. In Canada, the 2025 federal basic personal amount is $16,129 — a non-refundable credit worth 15% × $16,129 = $2,419 — and each province has its own basic personal amount. Employees declare credits on the TD1 form. In the US, the equivalent is the standard deduction, which directly reduces taxable income: $15,000 for single filers and $30,000 for married-filing-jointly in 2025, declared via Form W-4. The calculator applies the correct mechanism based on the country you select.
How do I handle payroll for Quebec employees?
Quebec uses its own pension and insurance plans instead of federal CPP and EI. QPP (Quebec Pension Plan) replaces CPP at 6.40% employee / 6.40% employer — slightly higher than CPP. QPIP (Quebec Parental Insurance Plan) replaces the parental portion of EI at 0.494% employee / 0.692% employer. Quebec's federal EI rate is reduced to 1.32% (vs. 1.64% elsewhere) because QPIP covers parental benefits. Quebec employers also deduct provincial income tax using Revenu Québec tables and remit Quebec deductions separately from federal ones.
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