Wage statement
Give a wage statement on or before payday showing the pay period, wage rate, gross wages and calculation, deductions, room or board amounts, and net wages.
See details →ONTARIO PAYROLL RESOURCES · ON · REVIEWED 2026-10-03
last verified 2026-10-03Ontario Payroll &Pay Statement Guide
Review Ontario’s wage-statement rule, e-mail delivery, record-retention periods, the October 1, 2026 minimum wages, the Employer Health Tax, WSIB premiums, and CRA withholding. Prepare a Canadian Pay Run for a small team or create an individual pay statement when that is all you need.
Wage statement on or before paydayOntario requires a wage statement on or before each payday, including any room or board amounts.
Employer Health TaxOntario employers pay the Employer Health Tax on Ontario remuneration above any exemption they qualify for.
Reviewed 2026-10-03Checked against current Ontario, WSIB, and CRA sources.
AT A GLANCE
What distinguishes Ontario pay-period records
Ontario’s Employment Standards Act, 2000 requires employers to give employees a wage statement on or before each payday. It must show the pay period, the wage rate if there is one, the gross wages and how they were calculated, the amount and purpose of each deduction, any amounts paid for room or board, and the net wages. The statement may be e-mailed if the employee has a way to make a paper copy. Wage-statement information is kept for three years after it is given to the employee.
Minimum wage
From October 1, 2026 to September 30, 2027: general $17.95, student $16.90, and homeworker $19.70 per hour. Hunting, fishing, and wilderness guides have daily rates.
View Ontario minimum wage →Employer Health Tax
Rates run from 0.98% to 1.95% of total Ontario remuneration. Eligible employers with Ontario payroll under $5 million, and registered charities, can claim a $1 million exemption. The exemption is next scheduled for adjustment on January 1, 2029.
View the Employer Health Tax →WSIB
The WSIB’s 2026 average premium rate is $1.23 per $100 of insurable payroll, down from $1.25 in 2025. Industry rates vary.
View WSIB 2026 premium rates →PROVINCE PAYROLL OVERVIEW
What makes Ontario different from other pay-statement jurisdictions
Ontario’s wage statement is tied to payday rather than to the end of the pay period: it is due on or before the employee’s payday, and the information must be separable from the payment itself. Two items are specific to Ontario: how the gross wages were calculated, and any amounts paid for room or board. The wage rate is required only if there is one.
Vacation pay has its own rule. If an employee has agreed in writing or electronically to receive vacation pay with each pay, the amount must be shown clearly and separately on the wage statement, or the employer must issue a separate vacation-pay statement. Ontario also keeps record periods by type: wage-statement information for three years after it was given, and vacation time and vacation pay records for five years.
Ontario has a provincial Employer Health Tax. The CRA withholding formulas for Ontario also include the Ontario Health Premium, which is deducted from the employee as part of Ontario income tax. Direct deposits made after June 20, 2024 must go to an account the employee selects.
PAYROLL REQUIREMENTS CHECKLIST
The Ontario requirements checklist
When a statement is required
Give a wage statement on or before the employee’s payday. The employee must be able to separate the statement from the payment.
Information to include
The pay period; the wage rate, if there is one; the gross wages and how they were calculated; the amount and purpose of each deduction; any amounts paid for room or board; and the net wages.
Vacation pay with each pay
If the employee has agreed in writing or electronically to receive vacation pay with each pay, show the vacation pay clearly and separately from other amounts on the wage statement, or issue a separate vacation-pay statement.
Electronic delivery
The statement may be delivered by e-mail if the employee has access to some means of making a paper copy.
Other employer obligations
Keep wage-statement information for three years after it was given, and vacation records for five years. Apply CRA source deductions, the Employer Health Tax, and WSIB premiums separately from the statement rule.
PAYROLL RECORDS IN PRACTICE
How Ontario treats the statement after payday
Delivery method
In writing, or by e-mail if the employee can make a paper copy. Wages may be paid by cash, cheque, or direct deposit to an account the employee selects.
Retention
Wage-statement information: three years after it was given. Hours worked: three years after the day or week of work. Vacation time and vacation pay records: five years after the record was made. Employee name, address, and start date: three years after employment ends.
CRA WITHHOLDING — PLUS THE EMPLOYER HEALTH TAX
Ontario withholding and employer payroll costs
Ontario employers deduct federal and Ontario income tax, including the Ontario Health Premium, CPP contributions, and EI premiums and remit them to the CRA. The Employer Health Tax and WSIB premiums are employer costs. They are not deducted from employee pay and should not appear as employee deductions on the wage statement.
Ontario income tax and the Ontario Health Premium
Ontario tax, including the Ontario Health Premium, is calculated with federal tax using the CRA tables or T4127 formulas.
Employer Health Tax
0.98% on total Ontario remuneration up to $200,000, rising in steps to 1.95% above $400,000. Eligible employers with Ontario payroll under $5 million, and registered charities, may claim the $1 million exemption. Annual returns are due March 15.
WSIB
2026 average premium rate of $1.23 per $100 of insurable payroll; industry rates vary.
Income tax (CRA)
Outside Quebec, employers withhold federal and provincial or territorial income tax together and remit both to the CRA. Use the CRA payroll deductions tables (T4032), the Payroll Deductions Online Calculator (PDOC), or the T4127 formulas that apply to the pay date. For 2026, the lowest federal rate is 14% and the federal basic personal amount is up to $16,452.
Canada Pension Plan (2026)
For 2026: basic exemption $3,500; maximum pensionable earnings $74,600; employee and employer each contribute 5.95%, up to $4,230.45. The second additional contribution (CPP2) is 4% each on earnings from $74,600 to $85,000, up to $416.
Employment Insurance (2026)
For 2026, maximum insurable earnings are $68,900. The employee premium is 1.63% of insurable earnings, up to $1,123.07. The employer pays 1.4 times the employee premium (2.28%), up to $1,572.30, unless it qualifies for a reduced rate.
Remittances, slips, and ROEs
Regular remitters send source deductions to the CRA by the 15th day of the month after the deductions were made. Accelerated and quarterly remitters follow different schedules. Employers also prepare T4 slips for the year and issue a Record of Employment when an employee has an interruption of earnings.
i
CPP and EI amounts are 2026 figures. Federal and provincial withholding values can change mid-year. The CRA issued a July 1, 2026 edition of T4127 (123rd edition) that changed British Columbia, Newfoundland and Labrador, and Prince Edward Island. Use the edition that applies to the pay date.
LOCAL AND COVERAGE CONSIDERATIONS
Ontario payroll is driven by provincial and federal rules
The primary sources reviewed for this page did not identify a municipal minimum wage or municipal payroll tax that changes payroll in Toronto, Ottawa, Mississauga, Hamilton, or other Ontario municipalities. In Ontario, the result changes with the type of worker and payroll size.
1
Toronto, Ottawa, and other municipalities
Apply the provincial minimum wage, wage-statement, and Employer Health Tax rules. Municipal business licensing is separate from payroll.
2
Students, homeworkers, and guides
Students under 18 who attend school may be paid $16.90 for up to 28 hours a week during the school term. Homeworkers, including students of any age who do paid work from home, are owed $19.70. Hunting, fishing, and wilderness guides have daily rates of $89.75 for under five hours and $179.50 for five or more hours.
3
Federally regulated employers
Federally regulated employers in Ontario follow the Canada Labour Code. The federal minimum wage is $18.15 per hour from April 1, 2026. That is higher than Ontario’s general rate, and the federal rule requires the higher of the two.
4
Employees who work in more than one province
For CRA withholding, the province of employment generally depends on the employer establishment where the employee reports for work, not where the employee lives. Fully remote employees are assessed under the CRA’s remote-work policy.
A SOURCE-BACKED WORKFLOW
A source-backed workflow for Ontario payroll records
1Confirm coverage and rateConfirm the employee is under the Ontario ESA and which minimum wage category applies.›
2Record hours and room or boardCapture hours, any room or board provided, and any vacation-pay-with-each-pay agreement.›
3Calculate deductionsApply federal and Ontario income tax, including the Ontario Health Premium, CPP, and EI.›
4Generate the statementShow the pay period, rate, gross wages and calculation, deductions, room or board, net wages, and any vacation pay separately.›
5Deliver and retainDeliver on or before payday and keep records for the periods the ESA sets: three years, or five years for vacation records.›
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OFFICIAL SOURCES USED FOR THIS PAGE
Official sources used for this page
01
Government of Ontario · ESA guide, payment of wages
Wage-statement contents, timing, e-mail delivery, and payment methods.
02
Government of Ontario · ESA guide, record keeping
Retention periods by record type.
03
Government of Ontario · ESA guide, vacation
Vacation pay with each pay and vacation statements.
04
Government of Ontario · ESA guide, minimum wage
Minimum wage rates from October 1, 2026.
05
Government of Ontario · Employer Health Tax
Rates, exemption, eligibility, and filing.
06
WSIB · 2026 premium rates
2026 average premium rate and industry rates.
07
Canada Revenue Agency · T4127 payroll deductions formulas
2026 federal and Ontario withholding formulas, CPP, and EI.
RESEARCH & REVIEW
Built from primary sources. Reviewed for accuracy.
This page is built from primary Ontario and federal sources and is periodically reviewed against current agency guidance. We use the Ministry of Labour’s Your guide to the Employment Standards Act, Ministry of Finance Employer Health Tax material, WSIB rate publications, and CRA payroll guidance whenever available.
FREQUENTLY ASKED QUESTIONS
Ontario pay-statement FAQ
What must an Ontario wage statement show?
The pay period, the wage rate if there is one, the gross wages and how they were calculated, the amount and purpose of each deduction, any amounts paid for room or board, and the net wages.
When must an Ontario wage statement be given?
On or before the employee’s payday.
Can an Ontario wage statement be e-mailed?
Yes, if the employee has access to some means of making a paper copy.
How long must Ontario wage-statement information be kept?
Three years after the information was given to the employee. Vacation time and vacation pay records are kept for five years.
What is Ontario’s minimum wage?
From October 1, 2026: $17.95 general, $16.90 for students under 18 working up to 28 hours a week during the school term, and $19.70 for homeworkers.
Who pays Ontario’s Employer Health Tax?
Employers with Ontario remuneration above the exemption they qualify for. Rates run from 0.98% to 1.95%. Eligible employers with Ontario payroll under $5 million, and registered charities, may claim a $1 million exemption.
ACCURATE RECORDS. SUPPORTING EVIDENCE.
Use accurate records, review the preview, and keep the supporting evidence.
Prepare an Ontario Pay Run, review gross-pay calculations, deductions, vacation pay, and CRA withholding before completion, and keep the applicable Ontario sources with your payroll workflow.