Remitting Canada Payroll Deductions
Use this guide to assist you in remitting your Canada payroll deductions.
First, determine if you are a Regular or Accelerated Remitter.
- Regular Remitter:
New employers, or those who have never remitted Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, or income tax deductions before must apply to the Canada Revenue Agency (CRA) for a Business Number (BN) and register for a payroll account.
If you are a new employer, you are considered a "regular remitter." You are also considered a regular remitter if your average monthly withholding amount (AMWA) two years ago was less than $15,000. Regular remitters must remit your deductions so that the CRA receives them on or before the 15th day of the month after you made the deductions.
Call (207) 693-4611 for a complementary payroll analysis,
or Get a Free Payroll Services Quote Now.
- Accelerated remitter: There are two "thresholds" of accelerated remitters.
- Threshold 1:This group consists of employers, including those with associated corporations and multiple payroll accounts, who had a total average monthly withholding amount of $15,000 to $49,999.99 two calendar years ago. Deductions must be received by the CRA by:
For remuneration paid before the 16 day of the month, by the 25th of the same month.
For remuneration paid after the 15th day of the month but before the first day of the following month, by the 10th day of the following month
- Threshold 2:This group consists of employers, including those with associated corporations and multiple payroll account, who had a total AMWA of $50,000 or more two calendar years ago. Amounts you deduct from remuneration you pay any time during the month are due to be received by your Canadian financial institution no later than the third working day (not counting Saturdays, Sundays, or public holidays) after the end of the following periods:
from the 1st through the 7th day of the month;
from the 8th through the 14th day of the month;
from the 15th through the 21st day of the month;
from the 22nd through the last day of the month.
Next, choose your remittance method. You have a number of options, including:
- My Payment:My Payment allows you to make payments online, using the Canada Revenue Agency's Web site, from an account at a participating Canadian financial institution.
- Electronically:Use your financial institution's telephone or online banking services
- At your financial institution: Complete the remittance form and present it with your payment. They will date stamp the bottom part and return the top part to you as a receipt.
- Using an ATM (automated teller machine): Your financial institution will debit your account when you use the ATM. Be sure to allow extra time for the CRA to receive the remittance after processing it.
- By Mail: Mail a cheque or money order payable to the Receiver General to the address listed in your remittance form booklet or on the back of your remittance form. Be sure to include your account number on your cheque or money order.
Be sure to consider the following:
- If you are a threshold 2 remitter, you must remit Canada payroll deductions electronically or in person at your Canadian financial institution.
- All payments made to the CRA at least one full day before the due date are considered to have been made at a financial institution and a penalty will not be charged.
- If you remit Canada payroll deductions for more than one account, make sure you provide your payroll account numbers and give a breakdown of the amounts intended for each account. We can then credit the right amounts to the right accounts.
- Allow 10 days for your remittance to process.
For more information on remitting Canada Payroll Deductions, refer to the Canada Revenue Agency's official website.
Canadian Payroll Services
Canada Payroll Deductions