What is payroll remittance
Payroll remittance is the money where employers in Canada send to the Canada Revenue Agency (CRA) after paying benefits or compensation to employees on payroll. Each time an employer pays wages, salaries, commissions, or provides taxable benefits, they must withhold certain amounts. These are known as source deductions and must be remitted to the CRA on a regular basis.
These deductions apply to all forms of remuneration, which include legally recognized compensation such as wages, bonuses, taxable benefits, and pension income. Employers are responsible for both calculating these amounts accurately and ensuring they are submitted in accordance with CRA requirements.
Table of Contents
How to make a payroll remittance
When to make a payroll remittance
How to make a payroll remittance
Employers can make a payroll remittance by ensuring they have accurately calculated all required payroll deductions for a given pay period. This includes income tax withheld from employees, as well as both the employee and employer portions of Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums. Before submitting a payment, employers also need key information including their payroll program account number, the total amount being remitted, and the specific reporting period the payment covers.
Once the amounts are confirmed, the next step is to determine which of the following is the best method: electronic payments through online banking or CRA’s My Business Account, in-person payments at a Canadian financial institution using an official remittance voucher, or in some cases, mailing a payment with the appropriate documentation. If no payroll deductions were made during a period, employers are still required to report a nil remittance. An example is if there were no employees or only seasonal workers. Nil remittances can be done electronically, by phone using the CRA’s TeleReply service, or by mail, depending on the employer’s remitter classification.
Employers must remit payments according to their assigned schedule, which is based on their average monthly withholding amount. Missing a deadline or submitting payment late can trigger penalties and interest charges, even if the delay is minimal. Additionally, if an employer has an outstanding balance from a previous period, that payment must be made separately from current remittances using the correct arrears process to ensure it is applied properly. After submitting the payment, employers should confirm that the CRA has received and applied it correctly by reviewing their account statements.
When to make a payroll remittance
When employers make a payroll remittance depends on their assigned remitter type, which is determined by the Canada Revenue Agency (CRA) based on their average monthly withholding amount and compliance history. Employers are required to remit payroll deductions, as income tax, CPP contributions, and EI premiums, on a regular schedule after paying employees, not at year-end or on an ad hoc basis.
For most employers, remittances are made monthly, with payments due on or before the 15th day of the month following the month in which employees were paid. Smaller employers with a strong compliance history may qualify for quarterly remitting, meaning payments are due on the 15th day after the end of each quarter. Larger employers, or those with higher payroll amounts, are typically classified as accelerated remitters and must submit payments more frequently: either multiple times per month or even within a few days after each payroll period.
The key principle is that payroll remittances must be made consistently and on time according to your assigned schedule. If a due date falls on a weekend or public holiday, the CRA considers the payment on time if it is received on the next business day. Missing a remittance deadline can result in penalties and interest, so employers need to closely track their remittance frequency and ensure payments are submitted promptly after each payroll cycle.
