How much does an Ontario employer have to contribute for CPP and EI on top of what employees pay?
As an Ontario employer you match every dollar of Canada Pension Plan (CPP) contributions your employees make — so if an employee's CPP deduction is $150, you also owe CRA $150. That 1-to-1 match applies to both the base CPP (CPP1) and the enhanced second tier (CPP2) that has been phasing in for higher earners.
For Employment Insurance (EI), the employer's share is higher than the employee's. The federal rate is set each year, but employers generally pay approximately 1.4 times the employee's EI premium. (Ontario does not have a provincial payroll tax equivalent of Québec's QPP structure, so the standard federal EI rate applies.)
Both employer contributions are fully deductible as business expenses. Because CPP and EI rates and maximums change annually, always use CRA's current year tables rather than prior-year figures. If you overpay CPP or EI during the year, you can claim a refund on your corporate or personal tax return.
Key takeaways
- Employer CPP match is dollar-for-dollar with the employee's contribution
- Employer EI is roughly 1.4× the employee's EI premium
- Rates change annually — use CRA's current year tables
- Both employer contributions are deductible business expenses