Resource · Compliance
Payroll remittances in Canada.
A plain-English guide to remitting CPP, EI, and income tax to the CRA — how the schedules work, when payments are due, and how to avoid the penalties that catch small employers off guard.
What is a payroll remittance?
Every time you run payroll, you withhold income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums from your employees. You add the employer share of CPP (matching) and EI (1.4× the employee premium), then send the total to the Canada Revenue Agency. That payment is called a payroll remittance, and it goes to your payroll program account (usually ending in RP0001).
Remitter types & due dates
The CRA assigns your remittance frequency based on your Average Monthly Withholding Amount (AMWA) from two calendar years ago. Higher payroll = more frequent remittances.
| Remitter type | AMWA (2 yrs ago) | Due date |
|---|---|---|
| Quarterly (new / small) | Under $3,000 & perfect compliance | 15th of month after quarter-end |
| Regular | Under $25,000 | 15th of the following month |
| Threshold 1 (accelerated) | $25,000 – $99,999.99 | 25th (for 1st–15th pay) & 10th of next month (for 16th–end pay) |
| Threshold 2 (accelerated) | $100,000+ | Within 3 working days after the end of the pay period (via financial institution) |
If a due date falls on a weekend or public holiday, the remittance is due the next business day. Annual remitters (very small employers under specific conditions) can be assigned by the CRA on request.
What's included in a remittance?
- Federal & provincial income tax withheld from employees
- Employee CPP + CPP2 contributions (and the employer match)
- Employee EI premiums + employer premiums (1.4× the employee amount)
- Quebec employers also remit QPP, QPIP, and Quebec income tax to Revenu Québec separately
How to pay the CRA
You have several options:
- CRA My Business Account — pay directly from a linked bank account
- Online banking — add "Federal – Payroll Deductions – Regular" (or Threshold 1/2) as a payee using your payroll account number
- Pre-authorized debit (PAD) — schedule payments in advance through My Business Account
- At your financial institution using the PD7A remittance voucher
- Third-party providers such as Plastiq (credit card, with a fee)
Threshold 2 remitters must pay through a Canadian financial institution — mailing a cheque is not compliant and results in a 10% penalty.
The PD7A statement
The PD7A is the CRA's statement of account for current-source deductions. It shows your remitter type, the amounts you've paid, and any balance owing. Most employers now receive it electronically in CRA My Business Account. Keep each PD7A with your payroll records — you'll reference it during your annual T4 reconciliation.
Late-remittance penalties
| Days late | Penalty |
|---|---|
| 1–3 days | 3% |
| 4–5 days | 5% |
| 6–7 days | 7% |
| 8+ days or unpaid | 10% |
| Repeated failure (gross negligence) | 20% |
Daily-compounding interest accrues on any unpaid balance at the CRA's prescribed rate. Set calendar reminders 3–5 days before every due date — most late remittances are simply forgotten, not disputed.
Nil remittances
If you didn't pay any employees in a period, you still need to tell the CRA. File a nil remittance through My Business Account, the CRA's TeleReply phone line (1-800-959-2256), or your payroll software. Skipping this step can trigger non-filing notices.
Year-end reconciliation
By the last day of February, file your T4 slips and T4 Summary. The Summary totals must match what you remitted throughout the year. Any shortfall is paid with the Summary; overpayments are refunded or applied to next year.
Automate it
Canadian Payroll calculates your CPP, CPP2, EI, and income tax on every pay run and produces a remittance-ready summary so you can pay the CRA on time — every time. See pricing →