Swift Accounting & Business Solutions Ltd.
2440 Kensington Rd NW, Calgary, AB T2N 3S1
(403) 999-2295 · mailbox@swiftltd.ca
·
Payroll Deductions Calculator (2026)
Enter a salary, hourly wage or pay amount to see net pay, CPP, EI and income tax per pay, plus what the employer owes and sends to CRA.
Net pay per pay period (first pay of the year)
| Item | First pay | Full year |
|---|
| Item | First pay | Full year |
|---|
Quebec employers remit QPP, QPIP and Quebec income tax to Revenu Quebec. Only federal tax and EI go to CRA. The Quebec tax shown here is an estimate.
Estimate based on 2026 rules. Not tax advice. Assumes the same pay all year with no bonuses or taxable benefits.
How it's calculated
- Each pay is annualized and run through the CRA T4127 formulas (Option 1) for federal and provincial tax, then divided back into one pay.
- CPP, CPP2 and EI come off every pay until each reaches its yearly maximum, so early pays are smaller than late ones.
- RRSP contributions and union dues lower the tax withheld. They do not reduce CPP or EI.
- TD1 claim amounts default to the basic personal amounts. Enter 0 for a second job.
- Employer cost adds the matching CPP and CPP2 and the employer EI premium. Quebec amounts that go to Revenu Quebec are left out of the CRA remittance.
Frequently asked questions
How much is deducted from a $60,000 salary in Alberta?
On a $60,000 salary paid bi-weekly in Alberta, the first pay is $2,307.69 gross. CPP is $129.30, EI is $37.62 and income tax is $306.52, which leaves $1,834.25 in net pay. Deductions change a little later in the year if CPP or EI reach their maximums.
What are the 2026 CPP and EI rates?
CPP is 5.95% on pay between $3,500 and $74,600, up to $4,230.45 a year. CPP2 is 4% on earnings from $74,600 to $85,000, up to $416.00. EI is 1.63% on earnings up to $68,900, up to $1,123.07. Employers match CPP and CPP2 and pay 1.4 times the EI premium.
How often do I send payroll deductions to CRA?
It depends on your average monthly withholdings. Under $3,000 you may qualify as a quarterly remitter. From $3,000 to under $25,000 you remit monthly by the 15th. From $25,000 to under $100,000 you remit twice a month, and at $100,000 or more you remit up to four times a month. CRA sets your type from the average two calendar years back.
Does this include the Ontario Employer Health Tax?
No. The Employer Health Tax is paid by the employer on top of payroll and is not taken from the employee. Ontario employers with total payroll under $5 million get a $1 million exemption. The Ontario Health Premium is included in the Ontario line above.
Is this the same as the CRA payroll calculator?
It follows the same T4127 formulas but assumes the same pay all year, with no bonuses or taxable benefits. For the exact amount to withhold, use the CRA Payroll Deductions Online Calculator.
Talk to a Swift accountant
Setting up payroll or fixing late remittances? We can run it for you or review what you have.