Curious About Payroll Calculations? Here’s What You Need to Know
Processing payroll can be one of the most stressful parts of running a business—especially when you’re worried about withholding the correct amounts for taxes, CPP, and EI.
If you’ve ever wanted to double-check what’s being deducted from employee pay—or understand the numbers before outsourcing payroll—this CRA tool can give you a quick snapshot of payroll deductions like CPP, EI, and income tax.
Try the Tool Now
CRA Payroll Deductions Online Calculator
What You Can Do with This Tool:
- Calculate accurate payroll deductions for salary, hourly, bonus, and other income types
- Customize based on province, pay frequency, and exemptions
- View detailed breakdowns of CPP, EI, and income tax withholdings
- Generate printable summaries for your records
That said, we don’t recommend managing payroll manually—and here’s why.
Why We Recommend Using a Payroll Provider Instead
While the CRA calculator is useful for estimating deductions, it falls short when it comes to running a compliant and streamlined payroll process. If you’re managing more than one employee or paying staff consistently, manually calculating payroll puts you at risk for:
- No paystubs generated—leaving your team without clear records
- Manual stat deduction tracking—you’ll have to tally up every tax yourself
- Increased risk of remittance errors—which can trigger CRA penalties
- Time-consuming calculations—that grow more complex with each new hire
Instead, we strongly recommend using a trusted Canadian payroll service like Payworks or Wagepoint. These platforms automate everything: paystubs, CRA remittances, T4s, direct deposit, and employee records—while keeping you compliant and saving time.
Need help? Get in touch.