Question 1

What is the true cost of hiring an employee in Canada?

Accepted Answer

The true employer cost is typically 18–30% above gross salary. On a $60,000 salary in Ontario, expect to pay roughly: $60,000 salary + $3,034 employer CPP + $1,308 employer EI + $1,170 EHT (Ontario) + $2,400 vacation pay (4%) = approximately $67,900 before any benefits. Add health benefits, group insurance, or other perks to get the full loaded cost.

Question 2

Which Canadian provinces have an Employer Health Tax (EHT)?

Accepted Answer

Four provinces levy payroll taxes on employers: Ontario charges EHT at 1.95% on total payroll exceeding $1,000,000 (exemption for eligible employers); British Columbia charges EHT at 1.95% on payroll over $500,000; Manitoba charges a Health and Education Levy (HE Levy) at 4.3% on payroll over $2.5M; Quebec charges FSS (Fonds des services de santé) at rates from 1.25% to 4.26% based on total payroll.

Question 3

How much vacation pay is required in Canada?

Accepted Answer

Under the Canada Labour Code (federal) and most provincial employment standards, employees earn a minimum of 2 weeks vacation (4% of gross wages) after one year, increasing to 3 weeks (6%) after five years. Ontario, Alberta, and BC follow similar minimums. Quebec mandates 1 day per full month in the first year. Always check the specific employment standards for the province where your employee works.

What Does It Really Cost to Hire in Canada?

Annual Cost Breakdown

Planning Insights

Cost Per Period

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