Newfoundland and Labrador

Employers in Newfoundland and Labrador incur several mandatory costs beyond an employee’s gross salary. These include:

1. Canada Pension Plan (CPP) Contributions: Employers match the employee’s contribution rate. For 2024, the employer’s contribution rate is 5.95% of the employee’s pensionable earnings, up to the maximum annual pensionable earnings limit.
   canada.ca
2. Employment Insurance (EI) Premiums: Employers contribute at a rate of 2.296% of the employee’s insurable earnings, up to the annual maximum insurable earnings limit.
3. WorkplaceNL Assessments: Employers are required to pay assessments to WorkplaceNL to cover the costs of work-related injuries and illnesses. As of January 1, 2022, the average assessment rate is $1.69 per $100 of payroll.
4. Health and Post-Secondary Education Tax (Payroll Tax): Employers whose annual remuneration exceeds $2 million are subject to a payroll tax at a rate of 2% on the amount exceeding this threshold.
   gov.nl.ca

Additionally, employers should account for other costs such as vacation pay, statutory holiday pay, and any additional benefits provided to employees. These mandatory costs typically range between 10-20% of an employee’s gross salary.