Canada
Canada's federal layer is CPP (5.95% employer to the C$74,600 ceiling, plus the CPP2 band at 4% up to C$85,000) and EI (1.4 times the employee rate, effectively 2.28% to the C$68,900 maximum). Ontario adds the Employer Health Tax at up to 1.95%, though a C$1M exemption spares most small employers, plus WSIB premiums averaging C$1.23 per C$100. Vacation pay of 4% to 6% is also a true payroll on-cost. Quebec swaps in QPP at 6.30%, QPIP and the Health Services Fund, so the two big provinces genuinely cost differently.
- CPP employer (2026)5.95% of C$3,500-C$74,600 + 4% CPP2 to C$85,000 (max C$4,646.45)
- EI employer (2026)2.282% to C$68,900 (max C$1,572.30)
- Ontario EHTUp to 1.95%; C$1M exemption for eligible employers
- WSIBIndustry-rated, 2026 average C$1.23 per C$100
- Vacation pay4% (under 5 years) / 6% (5+ years)
- Quebec runs a different stack: QPP 6.30%, QPIP 0.602%, reduced EI and the Health Services Fund.
- The caps mean the effective federal rate falls once salaries pass roughly C$85,000.
Source: Canada Revenue Agency (2026 rates from 1 Jan 2026). Checked July 2026.
United States
The fixed federal load is FICA: 6.2% Social Security up to US$184,500 (2026) and 1.45% Medicare with no cap. The extra 0.9% Medicare tax above US$200,000 is employee-only, so it never belongs in an employer cost model. Net federal unemployment tax is US$42 a head. The variable load, state unemployment tax and workers compensation, differs by state and industry and usually outweighs FUTA many times over.
- Social Security6.2% up to US$184,500 (2026)
- Medicare1.45%, no cap (the 0.9% surtax is employee-only)
- FUTA0.6% of the first US$7,000 (max US$42)
- State-ratedSUTA + workers compensation, varies
- Health cover is the elephant: not a payroll tax, but the ACA employer mandate applies at 50+ full-time staff and dwarfs FICA in practice.
- BLS benefit shares are quoted against total compensation, not salary; misreading that double-counts.
Source: Social Security Administration / IRS (2026 wage base). Checked July 2026.
The maths: Canada
| Salary (local) | Components | Total |
|---|
| 60,000 | CPP employer C$3,362; CPP2 employer C$0; EI employer C$1,369 | C$4,731 (7.9%) |
| 100,000 | CPP employer C$4,230; CPP2 employer C$416; EI employer C$1,572 | C$6,219 (6.2%) |
| 150,000 | CPP employer C$4,230; CPP2 employer C$416; EI employer C$1,572 | C$6,219 (4.1%) |
Plus Ontario Employer Health Tax (up to 1.95% past the C$1M exemption), industry-rated WSIB premiums and 4% to 6% vacation pay.
The maths: United States
| Salary (local) | Components | Total |
|---|
| 60,000 | Social Security US$3,720; Medicare US$870; Federal unemployment tax, net US$42 | US$4,632 (7.7%) |
| 100,000 | Social Security US$6,200; Medicare US$1,450; Federal unemployment tax, net US$42 | US$7,692 (7.7%) |
| 150,000 | Social Security US$9,300; Medicare US$2,175; Federal unemployment tax, net US$42 | US$11,517 (7.7%) |
Plus state unemployment tax and workers compensation, both state- and industry-rated, and health cover under the ACA mandate at 50+ staff.
Sources
Every figure on this page comes from the government source for its market.
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