EH HR Payroll Canada
A ready Canada salary structure: federal and provincial income tax on marginal brackets, plus CPP and EI, computed on the EH payroll engine.
Why this module
EH HR Payroll Canada
The math is locked, the numbers stay current
The marginal bracket walk, the CPP exemption and ceiling, and the EI cap are written in code and covered by tests. The actual percentages, the basic exemption and the annual maximums live in editable data and company settings, so you update figures for the tax year without touching logic.
Federal, provincial, CPP and EI on the same payslip
All four sit in one seeded Canada structure as ordinary salary rules. They read the gross from the running category totals, so allowances, overtime feeders and net all flow through the same compute pass rather than four disconnected calculators.
Period pay annualised, taxed, divided back
Each rule multiplies the period gross by the pay periods per year (52 weekly, 26 fortnightly, 12 monthly, inferred from the slip span), taxes the annual figure on the bracket schedule or against the CPP and EI ceilings, then divides back to the period. Brackets and ceilings apply on an annual basis the way CRA intends.
Day in the life
What a pay run looks like
You assign the Canada Standard structure to an employee, set their wage and compute the payslip. The engine annualises the gross, walks the federal bracket schedule and the provincial schedule slice by slice, takes CPP on pensionable earnings above the basic exemption and below the maximum pensionable amount, takes EI on insurable earnings up to the insurable maximum, divides each back to the period and lands net pay. Before the first real run you open Tax Brackets (CA) under Payroll, confirm every federal and provincial band against the current CRA and provincial tables, and confirm the CPP rate, exemption, maximum and the EI rate and maximum in company settings. From then on each slip recomputes from those figures.
Edge cases
The cases most modules quietly ignore.
In the shipped code today, each one a place where a cheaper module silently does the wrong thing.
Pay periods per year are inferred from the slip date span (daily, weekly, fortnightly, monthly, annual), so a monthly and a weekly slip annualise to the correct factor without per-rule configuration.
Tax, CPP and EI all short-circuit to zero when the period gross is not positive or the period count is missing, so empty or negative slips never produce a phantom deduction.
CPP subtracts the annual basic exemption then clamps pensionable earnings to the maximum pensionable amount, and never lets pensionable go below zero, so a sub-exemption earner contributes nothing rather than a negative.
EI caps annual earnings at the insurable maximum before applying the rate, so high earners stop contributing once the ceiling is reached within the annualised view.
If a company rate, exemption or maximum is left blank it reads as zero rather than crashing, so a half-configured company yields zero for that line instead of an error mid run.
Every rule expression runs through the engine safe_eval sandbox against read-only proxies, so the seeded Canada rules cannot reach the raw recordset, the database or any underscore backdoor.
The top federal and provincial bands use a very large upper bound, so any income above the last real threshold is taxed entirely at the top marginal rate with no overflow.
What is inside
Built to do the job, end to end.
- Bracket model and method. eh.hr.ca.tax.bracket holds federal and provincial bands selected by jurisdiction, ordered by annual upper bound. compute_annual_tax walks them slice by slice and compute_period_tax annualises, taxes, then divides back to the period.
- CPP and EI helpers. tax_federal, tax_provincial, cpp and ei are injected into the rule sandbox through the engine seam. CPP applies the basic exemption and maximum pensionable, EI applies the maximum insurable, both annualised then returned per period and rounded.
- Company settings. res.company carries the CPP rate, basic exemption and maximum pensionable, plus the EI rate and maximum insurable, seeded with template defaults you confirm against CRA for the tax year.
- Seeded structure. The Canada Standard structure ships eight rules in sequence: basic, gross, federal tax, provincial tax, CPP, EI and net, each an ordinary salary rule reading the running gross.
- Brackets screen and security. An editable Tax Brackets (CA) list under the Payroll menu lets HR admins maintain bands. Access is split across admin, officer and self-service groups so officers edit without deleting and employees only read.
- Tested engine math. Bundled tests pin controlled brackets and rates and assert the marginal walk, the provincial flat case, and a full payslip across federal, provincial, CPP, EI, total deductions and net, so the method stays correct independent of the template figures.
Honest about the edges
What this does not do, so nothing surprises you.
- Requires the EH HR payroll engine (eh_hr_payroll); it adds a Canada structure and helpers, it is not a standalone payroll.
- The seeded federal and provincial brackets and the CPP and EI defaults are templates for one representative province and must be verified against the current Canada Revenue Agency and provincial tables before any real run.
- It ships one provincial bracket set, not all provinces and territories; replace the provincial bands for the province you operate in.
- CPP and EI annualise period earnings against the annual ceilings; this is not a true running year-to-date cumulative cap across paid slips, so verify behaviour for partial years and mid-year starters.
- No tax credits or TD1 personal amounts, no second additional CPP tier, no employer-side contribution matching, and no T4, ROE or remittance forms are generated.
- Rates do not update automatically for new tax years; keeping the bracket data and company figures current is your responsibility.
Odoo 19 Canada payroll, Odoo Community payroll Canada, CRA income tax Odoo, CPP EI Odoo payroll, Canada Pension Plan Odoo, Employment Insurance payroll, federal provincial tax brackets, marginal tax payroll Odoo, pensionable earnings, insurable earnings, Canada salary structure Odoo, EH HR payroll Canada
Need this fitted to the way you work?
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We work with businesses across Australia (Melbourne, Sydney, Brisbane, Perth, Adelaide, Canberra) and the Middle East (Dubai, Abu Dhabi, Riyadh, Jeddah, Doha, Kuwait City, Muscat). Start a conversation at erpheritage.com.au or email info@erpheritage.com.au.
Languages
Available in 19 languages
The interface ships translated out of the box. Switch language in Odoo and the fields, menus, and messages follow.
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