Payroll Remittance Frequency 2024: Are You an Accelerated Remitter?

Key takeaways

• Payroll remittances (CPP, EI, income tax) must be sent to the CRA on time — late remittances incur 3–10% penalties
• The remittance frequency depends on your average monthly withholdings over the preceding calendar year
• Regular remitters (average monthly withholdings $25,000–$99,999) remit twice monthly
• Accelerated remitters (average monthly withholdings $100,000+) remit within 3 days of payroll
• New employers always start as regular remitters (monthly remittances due the 15th of the following month)

The CRA assigns each employer a payroll remittance frequency based on their previous year's average monthly withholding amounts. Getting the frequency wrong — or remitting late — triggers penalties that are separate from any amount owed. Even a one-day late remittance incurs a minimum 3% penalty.

Remittance frequency categories

New remitters and small remitters (average monthly withholdings under $25,000) remit monthly, by the 15th of the month after the pay date. Regular remitters ($25,000–$99,999 average monthly) remit twice per month: amounts deducted in the first 15 days are due by the 25th of that month; amounts deducted from the 16th to end of month are due by the 10th of the following month. Accelerated remitters ($100,000+) must remit within 3 working days of the end of each weekly period (Wednesday or earlier) in which payroll was run.

Penalties for late remittance

The penalty structure is: 3% for 1–3 days late, 5% for 4–5 days late, 7% for 6–7 days late, 10% for more than 7 days late, 20% for a second or subsequent failure in the same calendar year if there was a deliberate failure. These percentages apply to the amount that was late, not the total remittance. A $50,000 remittance that is 8 days late triggers a $5,000 penalty.

The year-end T4 reconciliation

Annual remittances must reconcile with the T4 summary. If you remitted more than the T4 shows should have been withheld, you will receive a credit; if less, you owe the difference plus interest from the original due date. Run a year-end payroll reconciliation before filing the T4 summary to catch any discrepancies before the CRA finds them.