function calculateBurden() {
// 1. Get Inputs
var salary = parseFloat(document.getElementById('baseSalary').value);
var vacationPct = parseFloat(document.getElementById('vacationRate').value);
var wcbPct = parseFloat(document.getElementById('wcbRate').value);
var ehtPct = parseFloat(document.getElementById('ehtRate').value);
var benefitsMonthly = parseFloat(document.getElementById('benefitsMonthly').value);
var otherAnnual = parseFloat(document.getElementById('otherAnnual').value);
// Validation
if (isNaN(salary) || salary cppMaxEarnings) {
pensionableEarnings = cppMaxEarnings – cppExemption;
}
var cppCost = Math.min(pensionableEarnings * cppRate, cppMaxContribution);
// Note: Logic simplified for standard CPP. CPP2 (enhancement) adds complexity, but this covers majority.
// Calculate EI
var insurableEarnings = Math.min(salary, eiMaxInsurable);
var eiEmployeePremium = insurableEarnings * eiRateEmployee;
var eiCost = eiEmployeePremium * eiEmployerMultiplier;
// Calculate Vacation Pay
var vacationCost = salary * (vacationPct / 100);
// Calculate WCB and EHT (Percentages of Gross Salary)
var wcbCost = salary * (wcbPct / 100);
var ehtCost = salary * (ehtPct / 100);
var totalTaxes = wcbCost + ehtCost;
// Calculate Benefits and Overhead
var annualBenefits = benefitsMonthly * 12;
var totalOverhead = annualBenefits + otherAnnual;
// Grand Totals
var totalBurden = cppCost + eiCost + vacationCost + totalTaxes + totalOverhead;
var totalEmployerCost = salary + totalBurden;
var burdenRate = (totalBurden / salary) * 100;
var hourlyCost = totalEmployerCost / 2080; // Standard 40hr week x 52 weeks
// 4. Update UI
document.getElementById('resBase').innerText = "$" + salary.toLocaleString('en-CA', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resBurdenAmt').innerText = "$" + totalBurden.toLocaleString('en-CA', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTotalCost').innerText = "$" + totalEmployerCost.toLocaleString('en-CA', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resBurdenPct').innerText = burdenRate.toFixed(2) + "%";
document.getElementById('resHourly').innerText = "$" + hourlyCost.toFixed(2) + " /hr";
// Breakdown Update
document.getElementById('valCPP').innerText = "$" + cppCost.toFixed(0);
document.getElementById('valEI').innerText = "$" + eiCost.toFixed(0);
document.getElementById('valVacation').innerText = "$" + vacationCost.toFixed(0);
document.getElementById('valTax').innerText = "$" + totalTaxes.toFixed(0);
document.getElementById('valBenefits').innerText = "$" + totalOverhead.toFixed(0);
// Show Results
document.getElementById('results').style.display = "block";
}
Understanding Employee Burden Rate in Canada
When hiring an employee in Canada, the base salary is just the starting point. The Employee Burden Rate represents the total cost to an employer above and beyond the gross wage. This "hidden" cost includes mandatory government deductions like CPP and EI, as well as employment standards requirements like vacation pay and optional benefits.
For most Canadian businesses, the true cost of an employee is typically 1.15 to 1.30 times their base salary. This means for every $1.00 you pay in wages, you are spending an additional $0.15 to $0.30 in overhead costs.
Key Components of the Burden Rate
Our calculator accounts for the following mandatory and optional costs specific to the Canadian labour market:
Component
Typical Cost / Rate
Notes
CPP (Canada Pension Plan)
5.95% (Employer Portion)
Employers must match the employee's contribution dollar-for-dollar up to the yearly maximum.
EI (Employment Insurance)
1.4x Employee Rate
Employers pay 1.4 times the amount deducted from the employee's cheque.
Vacation Pay
4% to 6%
Mandatory minimum is usually 4% (2 weeks), rising to 6% after several years of tenure depending on the province.
WCB / WSIB
Varies (e.g., 0.2% – 10%)
Workers' compensation premiums depend heavily on the industry risk level (e.g., construction vs. office work).
EHT (Employer Health Tax)
Varies by Province
Provinces like Ontario, BC, and Manitoba levy payroll taxes on employers, often subject to total payroll thresholds.
How to Calculate Your True Employee Cost
To manually calculate the burden rate, you sum up all non-salary costs associated with the employee and divide by the base salary.
Example:
If you pay an employee a $60,000 salary, and your total additional costs (CPP, EI, Benefits, WCB) amount to $12,000: ($12,000 / $60,000) = 0.20 or 20% Burden Rate.
Your true cost is $72,000.
Why This Matters for Profitability
Failing to account for the burden rate is a common mistake for new businesses and agencies. If you bill your clients based solely on the employee's hourly wage, you will likely lose money. A common rule of thumb for service businesses is to bill at 3x the hourly wage to cover burden, overhead (rent, software), and profit margin.
Provincial Differences
While CPP and EI are federal programs (outside of Quebec), other costs vary significantly:
Quebec: Uses QPP instead of CPP and has different parental insurance plans.
Ontario: Has the Employer Health Tax (EHT) for payrolls over $1 million.
British Columbia: Has the Employer Health Tax based on payroll size.
Alberta: Generally lower payroll taxes but standard WCB applies.