Payroll Source Deduction Remittances: Remitter Types and Due Dates
remitter types and remittance schedules for source deductions
The CRA assigns every employer a remitter type based on its average monthly withholding amount, and the type sets the deadline. Regular remitters send source deductions by the 15th of the month after payday; eligible small employers may remit quarterly; accelerated remitters follow faster twice-monthly or weekly schedules.
How does the CRA decide when payroll remittances are due?
By remitter type, which is set from the average monthly withholding amount (AMWA) two years prior. There are four tiers, and the gap between them is large: a quarterly remitter has fifteen days after quarter-end, while an Accelerated Threshold 2 remitter has three working days after a weekly period.
| Filing | Applies to | Filing deadline | Payment | If it is late |
|---|---|---|---|---|
| Payroll source deduction remittances | All employers. Frequency is set by the average monthly withholding amount (AMWA) from two years prior. | Quarterly remitters (AMWA under $3,000 with a clean compliance record, and eligible new small employers) remit by the 15th of the month after each calendar quarter. Regular remitters (AMWA under $25,000) remit by the 15th of the month following the month deductions were made. Accelerated Threshold 1 remitters (AMWA $25,000 to $99,999.99) remit 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. Accelerated Threshold 2 remitters (AMWA $100,000 or more) remit within three working days after each of four weekly periods, through a Canadian financial institution. | Not applicable | 3% for amounts one to three days late, 5% for four to five days, 7% for six to seven days, and 10% where more than seven days late or not remitted. A second or subsequent failure in the same calendar year, made knowingly or through gross negligence, carries a 20% penalty. |
Regular and quarterly remitters
Regular remitters — AMWA under $25,000 — remit by the 15th of the month following the month in which deductions were made. Quarterly remitters, with AMWA under $3,000 and a clean compliance record, remit by the 15th of the month after each calendar quarter: April 15, July 15, October 15 and January 15.
Accelerated remitters
Threshold 1 remitters, with AMWA between $25,000 and $99,999.99, remit by the 25th for pay periods ending the 1st to the 15th, and by the 10th of the following month for periods ending the 16th to month-end. Threshold 2 remitters, with AMWA of $100,000 or more, remit within three working days after each of four weekly periods and must pay at or through a Canadian financial institution.
What happens when a client's remitter type changes?
It changes with payroll growth, and the CRA notifies the employer. For a firm, this is the highest-risk moment in payroll compliance: last year's schedule silently becomes wrong. Treating remitter type as one editable field on the client record — rather than as knowledge held by whoever runs the file — is what makes next month's dates correct automatically.
What is the penalty for remitting late?
3% for amounts one to three days late, 5% for four to five days, 7% for six to seven days, and 10% where more than seven days late or not remitted at all. A second or subsequent failure in the same calendar year, made knowingly or through gross negligence, carries 20%.
Frequently asked questions
When are payroll remittances 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 a quarterly remitter?
An employer with an average monthly withholding amount under $3,000 and a clean compliance record, or an eligible new small employer. Quarterly remitters send source deductions by April 15, July 15, October 15 and January 15 for the preceding calendar quarter.
What is an accelerated remitter?
An employer with an average monthly withholding amount of $25,000 or more. Threshold 1 remitters ($25,000 to $99,999.99) remit twice a month. Threshold 2 remitters ($100,000 or more) remit within three working days after each of four weekly periods, through a Canadian financial institution.
What is the penalty for a late payroll remittance?
3% if the amount is 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.
Does a client's remitter type ever change?
Yes. The CRA sets remitter type from the average monthly withholding amount two years prior, so a growing employer can be reassigned to a faster schedule. Firms should confirm each payroll client's current type annually rather than relying on the type recorded at onboarding.
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