Updated Checked by the Tax-Services.ca editorial team How we check
Your $90,000 salary costs an Ontario employer about $96,219 a year, because the employer adds $4,646 of CPP and $1,572 of EI on top. You take home $67,197 of it, or $5,600 a month. So $29,022, about 30% of the employer’s cost, goes to governments before you see a dollar. These are 2026 estimates with basic credits only.
What does the employer pay on a $90,000 salary?
The employer pays CPP of $4,646 and EI of $1,572. The CPP amount matches what comes off your pay, including the second-tier CPP2 portion of $416. The EI amount is 1.4 times your own premium of $1,123. Neither appears on your pay stub, since the stub only shows your side. Both are real costs to the business, on top of the wage.
| Who pays | CPP | EI | Income tax | Total |
|---|---|---|---|---|
| You (deducted from pay) | $4,646 | $1,123 | $17,034 | $22,803 |
| Employer (on top of salary) | $4,646 | $1,572 | none | $6,219 |
| Total to governments | $9,292 | $2,695 | $17,034 | $29,022 |
Where does each dollar of the $96,219 go?
Of the total cost, you keep 69.8%. Income tax takes 17.7%, your own CPP and EI take 6.0%, and the employer’s share of CPP and EI takes 6.5%. Put another way, for every $1.00 you take home, the business spends about $1.43. A recruiter who quotes “total compensation” and a bank that asks about gross income are each describing a different slice of the same money.
Federal income tax on your side is $11,252 and Ontario tax is $5,782. The pay behind these figures is the same one covered on the income after tax in Ontario page.
Why does the employer add-on shrink as pay rises?
Because CPP and EI have yearly caps. The employer’s cost is a larger share of a lower salary. At $60,000 the employer pays $4,731 (7.9% of pay). At $90,000 it is $6,219 (6.9%), and at $120,000 it is still $6,219 (5.2%), since both caps were reached by $85,000.
| Salary | Employer CPP | Employer EI | Employer total | Total cost | Your take-home |
|---|---|---|---|---|---|
| $40,000 | $2,172 | $913 | $3,085 | $43,085 | $32,814 |
| $60,000 | $3,362 | $1,369 | $4,731 | $64,731 | $47,340 |
| $90,000 | $4,646 | $1,572 | $6,219 | $96,219 | $67,197 |
What does a raise cost the employer compared with what you keep?
Above the caps, a raise costs the employer only the raise. A $5,000 increase from $90,000 costs $5,000 and leaves you with $3,518 more, because the employer share doesn’t grow and only income tax applies. Lower down the cost is higher. Going from $60,000 to $65,000 costs the employer $5,412 and leaves you with $3,216. The lower the salary, the more of each raise the employer’s CPP and EI take.
How do you read this when comparing offers?
Take a business with a $100,000 budget for one hire. The employer share is $6,219, so the salary that fits is $93,781, and the person takes home $69,857. Someone offered that job in another province would see different tax but the same employer CPP and EI. Comparing it with a contract role is harder, because a contractor pays both halves of CPP. The contractor rate to salary calculator is built for that, and the job offer comparison calculator sets two offers side by side.
On an hourly basis at 2,080 hours, $90,000 is $43.27 an hour gross and $32.31 net. The business pays $46.26 an hour all in.
What does one biweekly pay period look like for both sides?
On a biweekly schedule, a $90,000 salary is $3,462 gross and $2,584 net. The employer’s real outlay for that same period is $3,701. The gap between the two numbers is what the business and you both send to the CRA.
| Per biweekly pay | You | Employer |
|---|---|---|
| Federal income tax | $433 | none |
| Ontario income tax | $222 | none |
| CPP | $179 | $179 |
| EI | $43 | $60 |
These are yearly amounts divided by 26. In practice CPP and EI stop partway through the year once the caps are reached, so real cheques early in the year carry larger deductions than the average shown here.
How does this compare with being self-employed at $90,000?
A self-employed person earning $90,000 pays both halves of CPP, which comes to $9,292 a year, instead of $4,646. There is no employer to cover the other half. EI is optional for most self-employed people, and nobody else pays for vacation or benefits. That’s why a contract rate has to sit well above an equivalent salary.
What is your net pay and income tax rate on $90,000 in Ontario?
Net pay on $90,000 in Ontario is $67,197 a year, about $5,600 a month. Income tax takes $17,034, an average tax rate of 18.9%, and your own CPP and EI take $5,769 more, so total deductions are $22,803, or 25.3% of gross pay.
The employer figures come on top of that and never reduce your net pay. These are 2026 estimates for one worker with basic credits and no other income.
What could change this?
The $96,219 isn’t the full cost of an employee. Vacation pay, benefits, workers’ compensation premiums and Ontario’s Employer Health Tax can all add to it, and none of them are counted here. See Employer Health Tax in Ontario for that rule. On your side, an RRSP contribution or a pension plan lowers income tax but not CPP or EI. A bonus of $5,000 would cost the employer $5,000 and you’d keep $3,518.
Looking ahead, the confirmed 2027 EI figures are a 1.64% rate on $70,800 of earnings, with a maximum employee premium of $1,161.12. At 1.4 times, the employer maximum would be about $1,626. The 2027 CPP numbers aren’t published yet, so the CPP side of this page will need a second look when they are.
The CPP and EI maximums are set by the Canada Revenue Agency: CPP contribution rates and maximums and the Canada Revenue Agency: EI premium rates and maximums pages, which also give the employer multiple for EI. The neighbouring salaries are on the $85,000 and $100,000 Ontario pages, and the payroll deductions calculator shows both sides at your pay.
Where does this information come from?
The CPP and EI maximums and the 1.4 employer EI multiple come from the Canada Revenue Agency pages linked above; the dollar examples are estimates from this site’s own engine for an Ontario employee with basic credits only. Checked in October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
How much does it cost an employer to pay $90,000 in Ontario?
About $96,219 a year in the 2026 estimate: the $90,000 salary plus $4,646 of employer CPP and $1,572 of EI. Vacation pay, benefits, workers' compensation and the Employer Health Tax are extra and not counted here.
Does the employer CPP and EI show on my pay stub?
No. Your stub lists only your own CPP of $4,646 and EI of $1,123. The employer's matching CPP and the 1.4 times EI premium are paid separately by the business and are not deducted from your pay.
Why is employer EI higher than mine?
The employer pays 1.4 times the employee premium. At $90,000 your EI is $1,123 and the employer's is $1,572. CPP is matched one for one, so the employer also pays $4,646.
Do I pay more tax if the employer pays more?
No. The employer share is a cost to the business, not part of your taxable pay. Your income tax of $17,034 is worked out on your salary, less your own CPP deduction and any RRSP.
Is the employer share different in Quebec?
Yes. Quebec uses the QPP and QPIP in place of CPP, and its EI rate is lower. The employer cost on $80,000 in Quebec is $6,431 in the same estimate, against $6,019 in Ontario.
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