EOR Cost in Canada: 2026 Employer Fees, CPP/EI Taxes & Total Cost

1. Canadian EOR Total Cost Overview

When hiring in Canada without establishing a federal or provincial corporation, an Employer of Record handles CRA payroll remissions, provincial health tax filings, and provincial labor standard compliance. Total employer burden in Canada typically adds 8% to 14% in statutory payroll taxes above base salary.

2. Statutory Employer Deductions in Canada

• Canada Pension Plan (CPP): Employer matches 5.95% up to the Year's Maximum Pensionable Earnings (YMPE), plus 4% on the second CPP2 band up to YAMPE.
• Employment Insurance (EI): Employer pays 1.4 times the employee contribution rate (approx. 1.66%–2.28% of insurable earnings).
• Provincial Health Taxes: Ontario Employer Health Tax (EHT) and British Columbia EHT apply graduated levies on payroll above exemption thresholds.
• Workers' Compensation (WCB/WSIB): Mandatory provincial coverage based on industry hazard classification.

Employment Rules & Compliance: For provincial employment standards, common law notice, probation periods, and mandatory statutory leaves, see our Canada Hiring & Employment Guide.