Hiring in Canada through an EOR: 6.8% on C$95,000, and why it halves to 3.4% at C$190,000

Summary

Summary

The federal employer layer is three lines, CPP at 5.95%, EI at 2.28% and CPP2 at 4%, and every one of them stops by C$85,000. A C$95,000 hire therefore carries C$6,426 (6.8%) and a C$190,000 hire carries the same C$6,426 (3.4%). Canada is the only one of the fifteen countries where the amount, not just the rate, is identical at the mid and senior salaries. Provincial payroll and health levies, such as Ontario's Employer Health Tax, are outside the figure, which is why a Canadian quote has to start with the province. The fee sits on its own line in US dollars, $99 to $699.

Three lines, all capped

Employer cost C$101,426, 6.8% above the salary; C$196,426 and 3.4% at C$190,000. The rate steps down in bands: about 8.23% up to C$68,900, 5.95% to C$74,600, 4.00% to C$85,000, zero above.

No statutory thirteenth month. The federal minimum is two weeks' vacation (ten days) under five years' service and ten holidays; federal law directly covers about a tenth of workers, and provincial minimums are similar or slightly lower.

Not in this floor. Provincial payroll and health taxes. Ontario's Employer Health Tax runs up to 1.95% of payroll above a C$1 million exemption (this site could not retrieve the provincial page, so the figure is unconfirmed). Through an EOR the exemption is measured on the provider's entity, so even a single hire can be inside it. Quebec runs QPP and QPIP instead of CPP and the federal EI split, at close but not identical rates. Provincial workers' compensation premiums are also outside.

Why the province comes first in a quote

The three federal lines are the same everywhere; the provincial lines are not, and EOR quotes usually include them. If a quote says "employer cost in Canada is X%," ask whether the difference from 6.8% (at C$95,000) is the provincial layer. Ontario, Quebec and Alberta give different numbers for the same salary.

The fee, in US dollars

Scroll sideways on a phone.

Canadian and US dollars are not added here. Remote and Oyster say they can bill in Canadian dollars (Remote in twelve currencies, Oyster in USD, EUR, GBP and CAD); on the page, those are the two options for a company that wants Canadian-dollar invoices.

Provider terms that matter in Canada

• Days to start. Remote lists Canada with the UK, the US and Ireland among its two-working-day countries, after self-enrollment with the right to work.
• The province. Contracts and payroll follow provincial law. Ask the provider which province its entity employs in and how provincial taxes appear on the invoice.
• Remote's cutoff. The standard 11th.

Who can employ in Canada

This site did not retrieve the providers' Canada pages for this article. Add "own entity in Canada, and in which province" to the questions for the quote.

Links on this page currently go directly to providers without affiliate tracking.

Sources

• https://seatbill.com/employer-of-record/c/ca
• https://seatbill.com/employer-of-record/guide
• https://support.remote.com/hc/en-us/articles/11109199121933 (as read for article-29))
• https://seatbill.com/employer-of-record/providers

Related on this site

• Employer cost of hiring in Canada in 2026 (c/ca)
• Employer contribution ceilings in 2026, 15 countries
• Hiring in the UK through an EOR
• What the number leaves out (guide)

Related on this site

• Hiring in Brazil through an EOR adds 46.4% to the salary. What is in it, and then the fee
• Hiring in the Philippines through an EOR adds 14.6%. Most of it is the 13th month, and the contribution caps are low