The CRA takes payroll remittances seriously. You are holding employee deductions in trust, and late remittances trigger automatic penalties. Understanding the deadlines and how to avoid missing them is one of the most important parts of running payroll in Canada.
What you are remitting
Each remittance includes:
- All income tax withheld from employees
- Employee CPP contributions
- Employer CPP contributions (matching the employee amount)
- Employee EI premiums
- Employer EI (1.4 times the employee amount)
You are not just remitting what you deducted from employees. You are also sending your employer share on top. This catches a lot of first-time employers off guard.
Remittance frequency categories
The CRA assigns a remittance frequency based on your average monthly withholding from two years prior:
- New employers and regular remitters: Monthly, due by the 15th of the following month
- Quarterly remitters: Available to small employers with a perfect compliance record and average monthly withholding under $3,000. Due April 15, July 15, October 15, and January 15
- Accelerated remitters (Threshold 1): Average monthly withholding $25,000 to $99,999.99. Remit within three days of the last day of the following periods: 1st to 7th, 8th to 14th, 15th to 21st, 22nd to the last day of the month
- Accelerated remitters (Threshold 2): Average monthly withholding $100,000 or more. Next business day after payroll runs
Most small businesses are monthly remitters.
CRA late remittance penalties
The CRA charges penalties on late or insufficient remittances based on how many days late the payment is:
- 1 to 3 days late: 3%
- 4 to 5 days late: 5%
- 6 to 7 days late: 7%
- 8 or more days late: 10%
- Second or subsequent failure in a calendar year: 20% (if it was made knowingly or under gross negligence)
These penalties are calculated on the amount that was late, not the total remittance owing. Interest also accrues daily on unpaid amounts at the prescribed rate.
How to remit
You can remit through My Business Account on the CRA website, through your financial institution online banking (using your payroll program account number), or in person at a financial institution. Most small businesses use online banking as it is the fastest and creates a payment record.
How PayCub helps
After every pay run, PayCub generates a remittance summary formatted to align with the CRA PD7A form. It shows the exact total owing, broken down by deduction type, with your due date clearly shown. There is no calculation required on your end. You take the total, go to your bank, and make the payment.
PayCub also sends SMS remittance reminders before your due date so you do not miss it.