Outside Canada employer payroll cost
What it costs to pay a Outside Canada employee this period: wages plus the employer’s CPP and EI.
Net pay
$
Your deductions
Employer pays
These amounts are not withheld from you. They are the employer’s statutory CPP and EI premiums on this pay.
No salary figure leaves the browser.
Show the working
| Factor | Value | Definition |
|---|---|---|
| A | Annual taxable income (T4127 Chapter 4, Step 1) | |
| R | Federal tax rate (T4127 Chapter 8, Table 8.1) | |
| K | Federal constant; the tax overcharged when applying the higher federal rates to A (T4127 Chapter 8, Table 8.1) | |
| K1 | Federal non-refundable personal tax credit (lowest federal tax rate × TC) (T4127 Chapter 4, Step 2) | |
| K2 | Federal tax credit for base CPP contributions and EI premiums (T4127 Chapter 4, Step 2) | |
| K4 | Federal non-refundable tax credit calculated using the Canada employment amount (T4127 Chapter 4, Step 2) | |
| T3 | Annual basic federal tax (T4127 Chapter 4, Step 2) | |
| T1 | Annual federal tax deduction (T4127 Chapter 4, Step 3) | |
| V | Provincial or territorial tax rate (T4127 Chapter 8, Table 8.1) | |
| KP | Provincial or territorial constant (T4127 Chapter 8, Table 8.1) | |
| K1P | Provincial or territorial non-refundable personal tax credit (lowest provincial rate × TCP) (T4127 Chapter 4, Step 5) | |
| K2P | Provincial or territorial tax credit for base CPP contributions and EI premiums (T4127 Chapter 4, Step 5) | |
| T4 | Annual basic provincial or territorial tax (T4127 Chapter 4, Step 4) | |
| V1 | Provincial surtax calculated on the basic provincial tax (Ontario only) (T4127 Chapter 4, Step 5) | |
| V2 | Ontario Health Premium calculated on taxable income (T4127 Chapter 4, Step 5) | |
| S | Provincial tax reduction (Ontario and British Columbia) (T4127 Chapter 4, Step 5) | |
| T2 | Annual provincial or territorial tax deduction (except Quebec) (T4127 Chapter 4, Step 5) | |
| T | Estimated federal and provincial or territorial tax deductions (T4127 Chapter 4, Step 6). Why it can differ from total_tax | |
| TB | Tax on the current bonus or retroactive pay: the difference between annual tax (T1+T2) with the non-periodic payment and without it (T4127 Chapter 4, bonuses and retroactive pay) | |
| M | Year-to-date federal and provincial tax already deducted on periodic pay (Option 2). Does not include extra tax requested (L) or tax on bonuses (M1) (T4127 Chapter 5) | |
| M1 | Accumulated federal and provincial tax deductions on non-periodic payments such as bonuses (T4127 Chapter 5) | |
| C | Canada (or Quebec) Pension Plan contributions (T4127 Chapter 6) | |
| C2 | Second additional Canada (or Quebec) Pension Plan contributions (T4127 Chapter 6) | |
| EI | Employment insurance premiums (T4127 Chapter 7) | |
| F5 | Deductions for Canada Pension Plan additional contributions (T4127 Chapter 4, Step 1) | |
| BPAF | Federal Basic Personal Amount (T4127 Chapter 2; Table 8.2) | |
| K3 | Other federal non-refundable tax credits authorized by a tax services office or tax centre (T4127 Chapter 4, Step 2) | |
| K3P | Other provincial or territorial non-refundable tax credits authorized by a tax services office or tax centre (T4127 Chapter 4, Step 5) | |
| K4P | Territorial non-refundable tax credit calculated using the provincial or territorial Canada employment amount (T4127 Chapter 4, Step 5) | |
| K5P | Provincial supplemental non-refundable tax credit (lowest provincial tax rate) (T4127 Chapter 4, Step 5) | |
| LCF | Federal labour-sponsored funds tax credit (T4127 Chapter 4, Step 3) | |
| LCP | Provincial or territorial labour-sponsored funds tax credit (T4127 Chapter 4, Step 5) | |
| Y | Additional Ontario tax-reduction amount based on the number of eligible dependants (T4127 Chapter 4, Step 5) | |
| F5A | CPP additional-contribution deduction (T4127 Chapter 4, Step 1) | |
| F5B | CPP additional-contribution deduction (T4127 Chapter 4, Step 1) | |
| D | Employee’s year-to-date (before the pay period) Canada Pension Plan contribution with the employer (T4127 Chapter 6) | |
| D1 | Employee’s year-to-date (before the pay period) employment insurance premium with the employer (T4127 Chapter 7) | |
| D2 | Employee’s year-to-date (before the pay period) second additional CPP contribution with the employer (T4127 Chapter 6) | |
| P | The number of pay periods in the year (T4127 Chapter 4, Step 1) | |
| PR | The number of pay periods left in the year (including the current pay period) (T4127 Chapter 4, Step 1) | |
| PM | Total months during which CPP and/or QPP contributions are required (used to prorate the maximum contribution) (T4127 Chapter 6) | |
| S1 | Option 2 cumulative-averaging pair: total pay periods / current pay-period number (for example 52/1 (T4127 Chapter 5) | |
| CEA | Canada Employment Amount (T4127 Chapter 8, Table 8.2) | |
| TC | Total claim amount reported on federal Form TD1 (T4127 Chapter 2) | |
| TCP | Total claim amount reported on the provincial or territorial Form TD1 (T4127 Chapter 2) | |
| IE | Insurable earnings (T4127 Chapter 7) | |
| QPIP | Quebec Parental Insurance Plan premium (T4127 Chapter 8, Table 8.29) |
Sources
Employer CPP match + CPP2 + 1.4× EI on whatever pensionable and insurable earnings you enter. No provincial employer tax in T4127 for this code. This is not a fully loaded cost: no WCB, no EHT, no RSP match, no vacation accrual. It is the T4127 statutory employer premiums on this period’s pensionable and insurable earnings.
Outside Canada has no provincial tax. Federal T1 is increased by a 48% surtax, then T2 is zero.
48% federal surtax
T4127 treats employment reported as Outside Canada by applying surtax_flat 0.48 to federal tax. That is not a provincial rate. A $1,000 weekly cheque has a larger federal line than the same cheque in Ontario, and a $0.00 provincial line.
T2 is always zero
There is no provincial JSON file. K1P, K2P, V, KP are zero. The response still includes those symbols; they are computed-as-zero, not omitted.
CPP and EI still run
The engine computes C, C2, and EI on the same YMPE/MIE table as a domestic paycheque. Whether a given non-resident employment is actually pensionable or insurable is an HR/CRA facts question this calculator does not decide. It will not drop CPP because the province field says OutsideCanada.
July 2026
Federal file inherited; surtax_flat remains 0.48. Six of 164 M-003 rows are OutsideCanada.