Payroll Remittances: What Employers Must Send to the CRA and When

Each payroll run should start with accurate calculations. The amount you send to the CRA normally includes the income tax you withheld from employees, employee CPP contributions, employee EI premiums, and your employer share of CPP and EI. Employer contributions are part of the remittance even though they are not taken from an employee’s pay.

The correct amount depends on each employee’s pay, province of employment, taxable benefits, and current CRA payroll deduction tables. Keep a clear payroll record for every pay period so you can explain how each number was calculated.

Your remittance due date is based on the CRA remitter type assigned to your business. New employers are commonly regular remitters, but some businesses may qualify as quarterly, accelerated threshold 1, or accelerated threshold 2 remitters. The schedule can change as your average monthly withholding amount changes.

A regular remitter usually sends deductions by the 15th day of the month following the month the employees were paid. Accelerated remitters have more frequent due dates. Check your CRA payroll program account rather than relying on a previous schedule, especially after your business grows or restructures.

A simple process reduces late payments and year-end cleanup. Set a calendar reminder immediately after each pay date, reconcile the total withheld to your payroll register, and submit the remittance through a traceable payment method. Save the confirmation number with your payroll records.

Review payroll transactions monthly. Compare gross wages, deductions, employer contributions, and remittances to your accounting records. This makes discrepancies easier to catch before T4 preparation.

Late payments can trigger penalties and interest, even when the payroll calculation was right. Other frequent issues include forgetting taxable benefits, classifying workers incorrectly, using outdated deduction rates, or remitting the employee portion without the required employer contribution.

If you discover an error, correct it promptly and document what changed. The right response depends on the issue, so it is often worthwhile to get professional advice before adjusting historical payroll records or year-end slips.

Maintain payroll registers, remittance confirmations, employee TD1 forms, benefit records, and copies of T4 and T4A filings. Organized records support accurate reporting and make it easier to respond if the CRA asks questions.

Payroll rules and thresholds can change. Review your setup at the beginning of each year and whenever you add staff, introduce a benefit, or change how employees are paid.