Payroll Remittance Deadlines: Which Remitter Type Are Your Clients?
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The CRA assigns each employer a remitter type that sets the deadline: regular remitters send source deductions by the 15th of the month after payday; eligible small employers may remit quarterly by the 15th after quarter-end; accelerated remitters follow faster twice-monthly or weekly schedules based on their average monthly withholding.
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How the CRA assigns remitter types
By average monthly withholding amount from two years prior. The tiers are quarterly, regular, accelerated threshold 1 and accelerated threshold 2, and the difference between the slowest and fastest is a month versus three working days.
Regular: the 15th of the following month
Employers with an average monthly withholding amount under $25,000 remit by the 15th of the month following the month in which deductions were made. This covers most small-business payroll clients.
Quarterly: who qualifies
Employers with an average monthly withholding amount under $3,000 and a clean compliance record, plus eligible new small employers, remit by the 15th of the month after each calendar quarter — April 15, July 15, October 15 and January 15.
Accelerated thresholds and schedules
Threshold 1 ($25,000 to $99,999.99) remits by the 25th for pay periods ending the 1st to 15th, and by the 10th of the following month for periods ending the 16th to month-end. Threshold 2 ($100,000 or more) remits within three working days after each of four weekly periods, at or through a Canadian financial institution.
Penalties for late remitting
3% for one to three days late, 5% for four to five, 7% for six to seven, and 10% beyond seven days or where the amount was not remitted. A second or subsequent failure in the same calendar year, made knowingly or through gross negligence, carries 20%.
Tracking remitter types across a client book
Store remitter type on the client record as a single field, and let the remittance schedule derive from it. That way a reassignment is a one-field edit and next month's dates are simply correct.
When a client's type changes
Growth moves employers into faster tiers, and seasonal payroll spikes can too. The CRA notifies the employer, which means the notification usually lands with the client rather than the firm — build a standing annual check rather than relying on being told.
Frequently asked questions
When are payroll source deductions due to the CRA?
It depends on the employer's remitter type. Regular remitters pay by the 15th of the month following the month deductions were made. Quarterly remitters pay by the 15th after each calendar quarter. Accelerated remitters pay twice monthly or within three working days of each weekly period.
What is the penalty for late payroll remittances?
3% if one to three days late, 5% for four to five days, 7% for six to seven days, and 10% if more than seven days late or not remitted. A second failure in the same calendar year made knowingly or through gross negligence carries a 20% penalty.
How does a firm know a client's remitter type?
The CRA assigns it and notifies the employer, which means the notice usually reaches the client rather than the firm. Confirm each payroll client's current type annually rather than relying on the type recorded when the engagement began.
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