About Remitting

Now, as the CRA is closed for business on the weekends and  public holiday, should your remittance be due on one of those days, it will be due the next business day. This means if your remittance is due on a Sunday and the following business day (Monday) is not a holiday, it will be due on Monday. Again, as it can take time for them to receive your remittance and as many financial institutes are closed on the weekend and on holidays, it would be best to submit your remittances before the weekend.

In the unfortunate event that your business goes bankrupt or otherwise ceases operation, remittances are due at your  tax centre within 7 days following closure/bankruptcy.

Failing to remit:

• if the amount is one to three days late: 3%
  
• if the amount is four or five days late: 5%
  
• if the amount is six or seven days late: 7%
  
• if the amount is more than seven days late (or failure to deduct / remit): 10%
  

This penalty is generally only applied to amounts more than $500, but the CRA can choose to apply it to amounts less than $500.

In addition, failing to deduct the correct amount and remit it can be met with a 10% penalty by the CRA.

The CRA will only apply this penalty once in a calendar year: if you are subject to another penalty in the same year, the CRA can apply a 20% penalty on a late remittance or failure to deduct if the CRA deems that the error was made knowingly or was otherwise negligent.

Due Dates

Quarterly Remitter

A quarterly remitter remits once a quarter. To qualify, an employer has to:

• have an average monthly withholding amount (AMWA) of less than $3,000 in either the first or the second preceding calendar year
  
• have a perfect compliance history ("perfect" means all remittances, GST/HST payments, T4-type information returns and GST/HST returns have been filed on time over the last 12-month period)
  

New employers will be notified by mail of this option. Employers who remain eligible will not be re-notified, but will be notified to the contrary if their status changes. If you believe your status changes to become eligible for quarterly remittance, you can call the CRA at 1-800-959-5525 to apply to remit quarterly.

The quarters are:

• January to March
  
• April to June
  
• July to September
  
• October to December
  

Remittances are due on the 15th day of the month following the last month of the quarter. The due dates are:

• April 15
  
• July 15
  
• October 15
  
• January 15
  

Regular Remitter

A regular remitter remits once a month on or before the 15th of the month following the deduction.

If your average monthly withholding amount (AMWA) is less than $14,999.99 (and you aren't a quarterly remitter, as above), you are a regular remitter. You must remit your deductions so that they are received by the CRA on or before the 15th of the month following the month you made the deductions.

A Threshold 1 Accelerated Remitter

To be eligible as a Threshold 1 Accelerated Remitter, you must have had a total average monthly withholding amount (AMWA) of $15,000 to $49,999.99 two calendar years ago. This includes those with associated corporations and multiple payroll accounts.

The CRA needs to receive your deductions by the following dates:

• for remuneration paid before the 16th day of the month, by the 25th day 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 Accelerated Remitter

A Threshold 2 Accelerated Remitter remits any week that a deduction is made (as many as 4 times a month).

This group consists of employers who had a total average monthly withholding amount (AMWA) of $50,000 or more two calendar years ago.

Amounts deducted from remuneration paid at any time of the month are due to be received by your Canadian financial institution no later than the third working day (not including 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.
  

Example: if the payday falls on the 5th of the month, the remittance is due three (3) working days after the 7th of that month.

Threshold 2 remitters must remit electronically or in person at their Canadian financial institution, else a penalty could be assessed.

Large employers are required to pay at a 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.

Payments made on the due date but not at a financial institution are subject to a penalty of 3% of the amount due.

All payments made after the due date are subject to the graduated penalty rates (as above).

Threshold 1 and 2 accelerated remitters are considered to be "Monthly Accelerated Remitters" if they have a payroll frequency of only once a month.

As a best practice, CRA and RQ payroll tax accounts should be balanced and reconciled monthly. To balance payroll tax accounts, you will need to access the monthly CRA and RQ payroll tax statements. Every month-end, your CRA and/or RQ accounts should be balanced to your Rise Federal Remittance and/or Quebec Remittance Reports to ensure all remittances are posted to the correct tax reporting month. Any discrepancies should be reported to Rise immediately at support@risepeople.com. 

How to download Federal Remittance & Quebec Remittance Reports

1. Navigate to Payroll, then click the Reports tab.

2. In the Custom Reports tab, scroll down to the Payroll Reports section and click on the Federal Remittances or Quebec Remittance report.

 

4. Once the report has successfully loaded, scroll over and click Export to Excel/CSV/PDF. 

5. Repeat the above steps for the Quebec Remittances report. 

How to balance Rise Remittance Reports to CRA and RQ Payroll tax accounts:

1. For each pay period, verify the Rise Remittance Report “Remit Due Date” and “Total Remittances” match your CRA and RQ monthly statement credits.

2. Reconcile all discrepancies each month and if required contact support@risepeople.com for assistance. 

3. Review your monthly CRA and RQ statement for miscellaneous charges. If penalties are assessed, please verify that your CRA and RQ account remittance threshold matches the most recent threshold information provided to Rise. If there is a threshold discrepancy, please contact support@risepeople.com and provide a copy of your monthly CRA and RQ account statement. 

Balancing and reconciling your CRA and RQ payroll tax accounts each month reduces Year End reconciliation time and ensures your accounts are accurate throughout the year.