What could this employee cost the business?

The cost is higher than gross salary because the employer may also pay CPP/QPP, EI premiums, provincial payroll charges, workers’ compensation, benefits, vacation and other compensation. The exact burden depends heavily on province and benefit package.

Start with gross wages and add statutory employer contributions and provincial payroll charges applicable to the employee, then add optional benefits and other employment costs. Annual maximums mean the effective percentage changes by salary level.

The total depends on province and benefits. In addition to $60,000 of salary, the employer can owe CPP/QPP, EI and other payroll contributions, so a calculator is more accurate than applying one generic percentage.

Quebec employers can face employer RRQ contributions, EI, RQAP, the Health Services Fund and other labour-related assessments depending on the employer and payroll. Some rates and thresholds vary by payroll size or industry.

They should be included when estimating the full cost of compensation. Health benefits, retirement contributions, paid leave, bonuses, equipment and other employer-paid items can materially increase the cost beyond statutory payroll charges.