Business -> Payroll taxes - deductions and automobile taxable benefits
Calculating Payroll Tax Deductions and Automobile Taxable Benefits
Canada Revenue Agency (CRA) has a Payroll Deductions Online Calculator (PDOC) which is free of charge.
CRA also has the Automobile Benefits Online Calculator, which calculates the appropriate automobile taxable benefit amount to be included in an employee's income when the employee utilizes a vehicle leased or owned by the employer.
If you prefer to calculate deductions manually, you can get instructions and the payroll deduction tables from the CRA web page on Calculating deductions.
Because payroll deduction rates often change semi-annually, you should get on the CRA electronic mailing list service for payroll deductions, so you can keep up to date when new rates are available.
For CRA information on taxable benefits, see T4130 Employers' Guide - Taxable Benefits and Allowances, as well as the Benefits Chart, which shows the types of benefits for which CPP and EI must be deducted, and which benefits require GST or HST to be included in the taxable benefit amount. It also shows the appropriate codes to go on a T4 slip.
Quebec Payroll Taxes
To calculate payroll taxes for Quebec, use WEBRAS from Revenu Quebec. See also Source deductions and employer contributions on Revenu Quebec website.
TaxTips.ca Resources
Which provincial or territorial tax tables should I use for my employees?
Canada Pension Plan (CPP), Quebec Pension Plan (QPP), and Employment Insurance (EI)
Detailed Income Tax & RRSP Savings Calculators for all provinces and territories. Input your annual income from different sources. Your annual federal & provincial/territorial taxes, CPP and EI premiums will be calculated for you. Input an RRSP deduction amount to see how much tax can be saved. The tax calculators are a very useful tax planning tool. They work for both the current and previous tax years.
Canada Revenue Agency (CRA) Resources
Payroll Deductions Online Calculator, payroll tables, TD1s, and more
CPP/EI Explained - information for workers and employers
Revised: October 26, 2023