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Ontario is Canada's largest provincial economy and most complex payroll jurisdiction — Employer Health Tax, WSIB premiums, and ESA standards layer on top of federal CPP and EI obligations. Rippling automates the full stack.
Ontario is Canada's most populous province and its economic engine — home to Toronto, Ottawa, and a deep technology, financial services, and professional services talent pool. Running payroll in Ontario involves federal obligations (CRA income tax withholding, CPP, EI) plus Ontario-specific requirements: the Employer Health Tax (EHT), WSIB (Workplace Safety and Insurance Board) premiums, and the Employment Standards Act (ESA) minimum standards.
The Canada Revenue Agency (CRA) administers federal payroll tax remittances. WSIB administers workplace safety insurance. The Ontario Ministry of Finance administers EHT. Each requires separate registration and reporting.
Rippling's Ontario payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| CPP (Employer) | 5.95% + CPP2 | Matches employee CPP contribution dollar-for-dollar. |
| EI (Employer) | 2.32% | 1.4x employee EI rate on insurable earnings up to $63,200. |
| WSIB (Workplace Safety) | Variable | Rate set by WSIB based on NAICS classification and claims history. Avg office: ~$0.18/$100 payroll. |
| Ontario EHT (Employer Health Tax) | 0.98%–1.95% | On total Ontario payroll. Exempt on first $1M of payroll for most employers. Rate 1.95% above $1.5M. |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | 15%–33% | Progressive federal brackets. Withheld per TD1 elections. |
| Ontario Income Tax | 5.05%–13.16% | Progressive provincial brackets. Withheld per TD1ON. |
| CPP (Canada Pension Plan) | 5.95% + 4% CPP2 | On insurable earnings $3,500–$68,500 (2024). CPP2: additional 4% on earnings $68,500–$73,200. |
| EI (Employment Insurance) | 1.66% | On insurable earnings up to $63,200 (2024). |
| Ontario Income (2024) | ON Rate |
|---|---|
| Up to $51,446 | 5.05% |
| $51,447–$102,894 | 9.15% |
| $102,895–$150,000 | 11.16% |
| $150,001–$220,000 | 12.16% |
| Over $220,000 | 13.16% |
Combined federal + Ontario top marginal rate: ~53.53% (on income over $246,752). Ontario surtax applies on provincial tax above thresholds, effectively adding ~20–56% surtax on higher provincial tax amounts.
ESA Notice: 1 week per year of service (max 8 weeks) for individual terminations. ESA Severance Pay: Applies if 5+ years of service AND employer payroll ≥$2.5M: 1 week per year of service, max 26 weeks. Mass Termination: 8–16 weeks collective notice depending on number of employees terminated.
Common law notice (for wrongful dismissal) typically substantially exceeds ESA minimums — consult employment counsel for individual cases.
Statutory: CPP (employer 5.95%), EI (employer 1.66x employee rate), WSIB workplace safety insurance, ESA minimum standards.
Market standard: Extended health/dental/vision (not covered by OHIP for many paramedicals), group life, LTD, RRSP/DPSP matching, 3-4 weeks vacation. Toronto tech market: competitive with US benchmarks on base, often includes equity and flexible work.
Ontario's Employment Standards Act (ESA) provides minimum employment standards including minimum wage ($17.20/hour as of October 2024), vacation pay (4% of gross or 2 weeks, increasing to 6% / 3 weeks after 5 years), public holiday pay, termination notice, and severance pay. The ESA sets a floor — employment contracts can provide more but never less. Rippling tracks ESA compliance including vacation accrual, notice periods, and public holiday pay calculations for Ontario employees.
Ontario's Employer Health Tax (EHT) is a provincial payroll tax paid by employers on total Ontario remuneration. The rate is 0.98% on payroll up to $200,000, scaling to 1.95% on payroll over $400,000. Employers with annual Ontario payroll under $1,000,000 are exempt (the exemption is reduced for associated corporations). Rippling calculates and remits EHT for Ontario payrolls above the threshold.
Ontario requires a minimum of 3 weeks vacation (6% vacation pay) for employees with 5+ years of service, stepping up from the 2-week / 4% minimum for new employees. This differs from most other provinces. Additionally, Ontario's ESA requires that vacation time be taken within 10 months of the vacation entitlement year in which it was earned, unless the employee agrees otherwise. Rippling tracks vacation entitlements and accruals by province.
Yes. Rippling handles Ontario payroll including federal and provincial income tax withholding, CPP and EI contributions, Ontario EHT remittance, WSIB premium tracking, ESA compliance monitoring (vacation, public holidays, termination), and T4 issuance. thePeopleStack configures Ontario payroll setups including CRA RP account, WSIB registration, and EHT setup.
