2026 Payroll Guide for Canadian Business
Payworks' 2026 Payroll Guide covers the legislative and regulatory figures Canadian employers need to run accurate payroll — updated to reflect July 1, 2026 changes. Inside: employment standards, CPP and QPP contribution rates, EI and QPIP premiums, statutory holidays, notice of termination rules, and WCB assessable earnings for all 10 provinces and 3 territories, including Quebec.
What does the 2026 Payroll Guide cover?
The guide includes the following reference charts and tables, updated for the 2026 tax year:
- Employment Standards — minimum wage, overtime thresholds, vacation pay rates, and reporting pay for every province and territory
- CPP/QPP rates — 2026 contribution rates, annual maximums, and CPP2/QPP2 figures for employees, employers, and the self-employed
- EI and QPIP premiums — 2026 employee and employer rates and annual maximums, including Quebec's separate QPIP figures
Payworks is a Canadian workforce management company with payroll compliance expertise across all 10 provinces and 3 territories — including Quebec's distinct requirements under QPP, QPIP, and the Act respecting labour standards.
Frequently Asked Questions
Three separate calculations, three different pools. Pensionable earnings (CPP) include vacation pay, overtime, and shift pay, but not severance or profit-sharing. Insurable earnings (EI) include bonuses, allocated to the pay period they're paid. WCB assessable earnings vary by province, Manitoba's 2026 maximum is $171,500, Nova Scotia's is $79,900. Mixing these up is one of the most common sources of remittance errors.
Yes. Bonuses and incentive pay are pensionable and insurable, so CPP, EI, and income tax all apply. Severance pay (retiring allowances) is the common exception — income tax applies, but not CPP or EI. The 2026 CPP employee/employer contribution rate is 5.95% on maximum contributory earnings of $71,100, for a maximum annual contribution of $4,230.45.
Canadian employers must calculate and remit CPP, EI, and income tax on every pay run — at the correct rates for the province the employee works in, not where the business is based. Minimum wage, overtime, vacation pay, stat holidays, and termination notice are all set provincially. A business with employees in multiple provinces is managing multiple sets of rules at once. Quebec is the most distinct: separate QPP and QPIP contributions, additional leave entitlements, and employment standards governed by the Act respecting labour standards.
It depends on the province and years of service. Most provinces start at 4% and step up to 6% after five years. Saskatchewan starts at 5.77% (three weeks) from year one. Federally regulated employees reach a third tier at ten years — 8%, or four weeks — a threshold no province matches.
No, the formula is different in every province. For example:
Ontario:
- employees who work a stat get time-and-a-half plus public holiday pay, or regular pay plus a substitute day off.
Quebec:
- regular wages plus their stat entitlement, or a paid day off — no time-and-a-half.
British Columbia:
- adds double time after 12 hours worked on a stat.
Other Resources
About Payworks
Doing business to business, person to person. Since 2001, Payworks has been proudly Canadian — with offices and employees across the country dedicated to building and supporting solutions for Canadian businesses. Today, we’re recognized leaders in total workforce management, delivering payroll, HR, time and attendance, and analytics tools backed by industry-leading service. We’re honoured to have been named one of Canada’s Best Managed Companies every year since 2012, and to be a three-time designee of Canada’s Top Small & Medium Employers.