--- title: "Payroll Services in Toronto, ON | EverStone CPA" url: https://www.everstonecpa.com/payroll-services-toronto description: "Remote payroll for Toronto employers — Ontario employer health tax bands, the $5 million exemption cut-off, WSIB, remittances and T4s. Ask for a fixed fee." type: service-in-a-city updated: 2026-10-02 summary: "Toronto employers remit income tax, CPP and EI to the CRA and pay Ontario employer health tax on Ontario remuneration. The rate is selected from a graduated table using total payroll before the exemption, then applied to payroll after the $1,000,000 exemption is deducted. WSIB coverage is separate again." faq_count: 8 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Payroll services](https://www.everstonecpa.com/payroll-services-canada) Toronto Payroll & source deductions · Toronto # Payroll services in *Toronto* Ontario employer health tax has a quirk that costs Toronto employers money every year: the rate is chosen using payroll *before* the exemption, not after it. Read the table the other way round and you understate the liability. EverStone runs payroll for [Toronto businesses](https://www.everstonecpa.com/accountant-toronto) remotely, on a written fixed scope. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) **Quick answer:** Toronto employers remit income tax, CPP and EI to the CRA and pay Ontario employer health tax on Ontario remuneration. The rate is selected from a graduated table using total payroll before the exemption, then applied to payroll after the $1,000,000 exemption is deducted. WSIB coverage is separate again. Payroll covers the source deductions for CPP, EI premiums and income tax, the remittances to the CRA, the year-end T4 and T4A slips, and access through My Business Account. Updated September 2026 . Pick the rate before the exemption, not after it. ## The Ontario employer health tax rate is chosen before the exemption, not after Ontario’s employer health tax is graduated, and the order of operations is where employers lose money. Choose your rate from the band table using **total Ontario remuneration before any exemption is deducted**, then subtract the exemption and apply that rate to the rest. Deducting the exemption first puts you in too low a band and understates the tax. The bands run from 0.98% on [Ontario payroll](https://www.ontario.ca/document/employer-health-tax-eht) up to $200,000, through eight further steps between $200,000.01 and $400,000, to 1.95% on payroll over $400,000. The exemption is $1,000,000. Two further rules matter for a Toronto business of any complexity. No exemption at all is available where the employer or its associated group has more than $5,000,000 of annual Ontario payroll. And associated employers must file an allocation agreement to share the single exemption between them. All of it is tabled with its source on the [Ontario tax facts page](https://www.everstonecpa.com/ontario-tax-facts). ## Group structures are where the exemption disappears Toronto has many multi-entity businesses: an operating company and a management company, a professional corporation beside a services entity, a holding structure with staff in two places. Each collides with the employer health tax rules, because the exemption belongs to the associated group, not each corporation. Without an allocation agreement, each entity may claim a full exemption it is not entitled to, and a group over $5,000,000 of combined Ontario payroll loses it outright. So the calculation is done at group level, then allocated. Doing it entity by entity and summing gives a predictably wrong number. Where structure is being considered for other reasons, include this payroll cost in the comparison — the [associated corporations](https://www.everstonecpa.com/blog/associated-corporations-small-business-deduction) note covers the parallel corporate tax issue. ## WSIB, and the federal deductions underneath Ontario workplace coverage runs through the **Workplace Safety and Insurance Board**, separate from the Ministry of Finance, with its own registration, classification and clearance obligations. It uses the same payroll data but reports to a different body on a different schedule, which is easy to miss when payroll runs informally. Federal obligations are the same everywhere: income tax, CPP and EI are withheld each pay run and remitted with employer contributions to the CRA, on a schedule set by average monthly withholding. Ontario recognizes nine public holidays. Holiday pay is regular wages and vacation pay from the four work weeks before the holiday week, divided by twenty, unlike British Columbia’s average day’s pay. ## What is covered - Pay runs with Ontario tax tables applied to Ontario employees - Income tax, CPP and EI withheld and remitted on your CRA schedule - Employer health tax calculated at group level, with the band selected correctly - Allocation of the exemption across associated employers where one applies - WSIB registration support and payroll reporting - Public holiday and vacation pay calculated under Ontario employment standards - T4 and T4A slips and summaries filed by the last day of February ## Remote, from a single office in British Columbia EverStone is a sole practitioner CPA firm with no Toronto office or Ontario branch; Toronto employers are served online through video calls, secure document exchange and e-signature. Payroll suits that, since none of it is physical. The [payroll hub](https://www.everstonecpa.com/payroll-hub) collects the guides and calculators. What a lender or a shareholder actually reads is [year-end statements in Toronto](https://www.everstonecpa.com/financial-statements-toronto). The year end this all feeds into is [corporate tax in Toronto](https://www.everstonecpa.com/corporate-tax-accountant-toronto). Each company in a group remits on its own dates, so map all of them on [a thirteen-week cash forecast](https://www.everstonecpa.com/cash-flow-management). About this article **EverStone CPA** Written and checked by EverStone CPA’s Chartered Professional Accountant, working remotely from British Columbia with Toronto employer groups. Revised September 2026. [About the firm](https://www.everstonecpa.com/about) · [Send an enquiry](https://www.everstonecpa.com/book-online) ## Payroll obligations for a Toronto employer Payroll obligations for a Toronto employer Federal obligations plus what Ontario adds — for a business operating in Toronto, Ontario | Obligation | What it involves | | Source deductions | CPP, EI and income tax withheld from each pay | | Remittance | Due on the schedule the CRA assigns to your payroll account | | T4 slips and summary | Filed after the calendar year end | | Provincial payroll tax (Ontario) | Employer health tax, once Ontario payroll exceeds the $1,000,000 exemption | | Sales tax where you operate | 13% HST, a single registration and a single return | Source: [Ontario tax facts](https://www.everstonecpa.com/ontario-tax-facts). General information, not advice. In Toronto, EverStone also works with [agencies](https://www.everstonecpa.com/agency-accountant-toronto), [realtors](https://www.everstonecpa.com/realtor-accountant-toronto) and [tech startups](https://www.everstonecpa.com/tech-startup-accountant-toronto). Free tools for Toronto businesses: [payroll remittance calculator](https://www.everstonecpa.com/payroll-remittance-calculator). ## Who this is for, and who it is not The typical Toronto client runs two or three associated corporations, perhaps an operating company, a management company and a holding company, with staff in more than one. You want the Ontario EHT exemption shared correctly, the [PD7A](https://www.everstonecpa.com/forms/pd7a) balanced for each payroll account and T4s that agree. A large unionized shift workforce is better on a dedicated platform, and we will tell you. Otherwise [the price](https://www.everstonecpa.com/fee-estimate) is settled first. ## What happens when you get in touch With a group, setup starts with the structure rather than the first pay run. - **Thirty minutes, at no charge.** Which corporations pay wages, how they are associated, and what each RP account shows today. - **Allocation and deadlines first.** The EHT exemption is allocated across the group, and each account’s remittance dates are logged to avoid a [missed remittance](https://www.everstonecpa.com/blog/payroll-remittances-canada-rp-account). - **Runs through the year, returns after it.** Every entity remitted on time, then T4s filed before February ends and the annual EHT return after. [Send an enquiry](https://www.everstonecpa.com/book-online), or [ask about your group structure](https://www.everstonecpa.com/quick-question) first. Common questions ## Toronto payroll questions **How is the Ontario employer health tax rate selected?** From total Ontario remuneration before any exemption. Once the band is set, subtract the exemption and apply that rate to the remainder. Deducting the exemption first lands you in too low a rate and understates the liability. [Ask about your case →](https://www.everstonecpa.com/quick-question) **What are the Ontario employer health tax rates?** They run from 0.98% on Ontario payroll up to $200,000, through a series of steps between $200,000.01 and $400,000, to 1.95% on payroll over $400,000. The exemption is $1,000,000, and it is scheduled for inflation adjustment on 1 January 2029. **Can every Toronto employer claim the $1,000,000 exemption?** No. It is unavailable where the employer or its associated group has more than $5,000,000 of annual Ontario payroll — the exemption is lost outright rather than reduced. Associated employers below that line must file an allocation agreement to divide the single exemption between them. **Is WSIB part of the same filing as employer health tax?** No. WSIB is administered separately from the Ministry of Finance, with its own registration, classification and reporting. It uses the same payroll figures, which is why it is often overlooked when payroll is informal. **How is Ontario public holiday pay calculated?** From regular wages earned plus vacation pay payable in the four work weeks before the work week containing the holiday, divided by twenty. Ontario recognizes nine public holidays. The formula differs from other provinces, so a national policy written for one jurisdiction will not produce correct amounts here. **Does EverStone have an office in Toronto?** No. Toronto employers are served entirely remotely by video, e-signature and secure document exchange; nobody travels. **What does payroll cost for a Toronto business?** Nothing about a Toronto address changes the fee. Payroll is included in monthly bookkeeping from $325 a month; a payroll-only engagement is quoted by headcount and pay frequency, in writing, after we review your enquiry. [See the published fees](https://www.everstonecpa.com/pricing). **Do you work with businesses outside Toronto itself?** Yes. Employers in Mississauga, Brampton, Vaughan, Markham and the rest of the GTA are set up like Toronto ones: remote payroll, scheduled remittances, same fee. ## Ontario payroll tax calculated properly Employer health tax, WSIB and CRA remittances handled by a CPA, remotely. Send an enquiry. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) ★★★★★ “…He is very knowledgeable and has saved me tons in taxes by restructuring my group of companies — the best accountant I've worked with in the last 10 years, after switching from three different firms.” Matt Hildebrandt · Google review ## Related services and local guides Nearby cities, the rest of what we do for Toronto businesses, and the reference pages behind this one. [Trades accountant in Toronto](https://www.everstonecpa.com/trades-accountant-toronto) [Restaurant accountant in Toronto](https://www.everstonecpa.com/restaurant-accountant-toronto) [Personal tax accountant in Toronto](https://www.everstonecpa.com/personal-tax-accountant-toronto) [Payroll in Ottawa](https://www.everstonecpa.com/payroll-services-ottawa) [Payroll in Chilliwack](https://www.everstonecpa.com/payroll-services-chilliwack) [Payroll in Abbotsford](https://www.everstonecpa.com/payroll-services-abbotsford) [CFO services in Toronto](https://www.everstonecpa.com/cfo-services-toronto) [Accounting & CPA services in Toronto](https://www.everstonecpa.com/accountant-toronto) [Bookkeeping in Toronto](https://www.everstonecpa.com/bookkeeping-toronto) [Payroll services in BC, AB, ON and MB](https://www.everstonecpa.com/payroll-services-canada) [Payroll hub Remittances, deductions and T4 filing](https://www.everstonecpa.com/payroll-hub) [Payroll deduction calculator CPP, EI and tax on a pay period](https://www.everstonecpa.com/payroll-deduction-calculator) [Accountants across Ontario](https://www.everstonecpa.com/accountant-ontario) [Ontario tax facts Current rates and thresholds for Ontario](https://www.everstonecpa.com/ontario-tax-facts) ### Starting fees Every fee is fixed in writing before any work begins. - **Payroll, remittances, T4s and ROEs** included in monthly bookkeeping *This page* - **Monthly bookkeeping, HST filing included** from $325 a month - **Books, payroll and the year-end T2 together** $500–$700 a month - **Corporate year-end and T2 return** fixed fee, quoted in writing - **Personal tax return (T1)** from $125; self-employed or rental $275–$500 - **Catch-up bookkeeping** from $2,200 per year of records - **Controller or CFO support** controller from $1,650, CFO from $2,750 a month - **One-off advice call with a CPA** $225 plus GST [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form) --- Source: https://www.everstonecpa.com/payroll-services-toronto Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online