Payroll Source Deduction Remittances
Employers must remit CPP contributions (employer and employee), EI premiums (employer and employee), and employee income tax deductions to CRA on a schedule based on their average monthly withholding amount (AMWA). New employers are regular remitters (remit by the 15th of the following month). Large payrolls remit twice monthly or weekly.
Who this applies to
- All employers with at least one employee subject to CPP, EI, or income tax deductions
- New employers (default to regular remitter status)
- Corporations paying salaries to owner-directors
- Employers with employees in Quebec (remit to both CRA and Revenu Quebec)
What to file
Remittance payment via PD7A (regular/accelerated remitters) or PD7A-RB (accelerated Tier 2). No separate form filing required for each remittance in most cases - payment through CRA My Business Account, online banking, or financial institution teller triggers the record. Annual reconciliation is via the T4 Summary.
How to file
Online via CRA My Business Account, financial institution online banking (add CRA as a payee using your BN + RP program account number), or in person at a financial institution. My Business Account is the recommended method for speed and confirmation.
Payment due
Per the remittance schedule above. Remittances are due on specific dates regardless of whether a payroll was actually run in that period.
Penalties for missing this deadline
Late remittance penalty: 3% (1-3 days late), 5% (4-5 days), 7% (6-7 days), 10% (more than 7 days), 20% (second/third offence in a calendar year). Interest at the prescribed rate on outstanding amounts. Directors of corporations can be personally liable for unpaid payroll remittances under the director's liability provisions of the Income Tax Act.
Filing checklist
- Calculate total CPP (employee + employer), EI (employee + employer), and income tax deducted for the period
- Confirm remittance frequency (regular, accelerated Tier 1, or accelerated Tier 2) based on AMWA
- Remit via CRA My Business Account or online banking on or before the due date
- Retain payroll records (deduction calculations, payroll registers) for 6 years
- Reconcile year-to-date remittances against year-to-date deductions at least quarterly
Common mistakes to avoid
- Remitting only the employee portions and forgetting to include the employer's share of CPP and EI
- Using the wrong remittance frequency after the AMWA changes (CRA assigns frequency based on prior-year AMWA and notifies employers annually)
- Not remitting on time because no payroll ran that period (remittances are due on schedule regardless)
- Directors ignoring director's liability exposure when a corporation falls behind on payroll remittances
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