# Month-end close: payroll remittances in Canada Canada's payroll remittances are due on a schedule the CRA assigns from your client's withholding two years ago, and a late one costs 3% to 10%. This is part of the [payroll checklist](/month-end-close-checklist/payroll). Employers remit payroll deductions and contributions to the CRA. Provincial items, such as workers' compensation and employer health taxes, are set by each province: see the [British Columbia example](/month-end-close-checklist/british-columbia). **Rate.** The amounts to remit are the CPP, EI and income tax withheld from pay, plus the employer's share of CPP and EI. **Filing.** The CRA assigns the remitter type from the client's average monthly withholding two calendar years ago: under $25,000 is regular, $25,000 to $99,999.99 is accelerated threshold 1, and $100,000 or more is threshold 2. Under $3,000 with a perfect compliance history can be quarterly. **Due.** Regular: the 15th of the month after the pay month. Quarterly: April 15, July 15, October 15, January 15. Threshold 1: the 25th, or the 10th of the next month. Threshold 2: within 3 working days of each part-month period. **The trap.** Due dates run from payday, not the pay period. A late remittance costs 3% (1 to 3 days), 5% (4 to 5), 7% (6 to 7) or 10% (over 7 days or not remitted), generally on the part over $500. ## The month-end steps 1. **Find the remitter type.** The CRA works it out by adding up the CPP, EI and income tax your client had to send for its payroll program account two calendar years ago, then dividing by the number of months in that year, up to 12, in which it had to make payments. That is the average monthly withholding amount [1]. See the client's remitting requirements in My Business Account (for the business owner) or Represent a Client (for an authorized employee or representative), under View remitting requirements [1]. The CRA also writes to an employer whose type changes, usually in December. Done when the type on file matches the remitting requirements. | # | Type | Average monthly withholding amount | Remittance due [1] | |---|---|---|---| | 1 | Regular | Under $25,000, and new employers | The 15th of the month after the pay month | | 2 | Quarterly | Under $3,000 in either of the two preceding calendar years, with a perfect compliance history and a payroll account at least a year old | April 15, July 15, October 15 and January 15 | | 3 | Accelerated, threshold 1 | $25,000 to $99,999.99 | Pay on the 1st to the 15th: by the 25th of the same month. Pay on the 16th to the end of the month: by the 10th of the next month | | 4 | Accelerated, threshold 2 | $100,000 or more | Within 3 working days after the end of each period: the 1st to 7th, 8th to 14th, 15th to 21st and 22nd to the end of the month | 2. **Check the compliance history for a quarterly remitter.** A perfect history is 12 months in which every deduction and remittance of CPP, EI and income tax was on time, the GST/HST was paid on time, and the T4 returns and GST/HST returns were filed on time [1]. A new employer whose monthly withholding is under $1,000 and who has a perfect history can remit quarterly for its first year [1]. Done when each quarterly client has had no late remittance, payment or return in the last 12 months. 3. **Date each remittance from payday.** Due dates run from the payday, not the pay period [1]. A threshold 2 payment must reach the CRA through a Canadian financial institution by the due date [1]. Done when each remittance in the month has a due date worked out from its payday. 4. **Know what late costs.** The penalty is 3% when the remittance is 1 to 3 days late, 5% for 4 to 5 days, 7% for 6 to 7 days, and 10% for more than 7 days or when nothing is remitted. It generally applies only to the part over $500 [1]. Done when the month's remittances were all made by their due dates, or the late ones are flagged for the client. 5. **Tie the liabilities.** Done when the CPP, EI and income tax liability accounts are at zero after the month's remittances, or equal the amounts not yet due. ## Sources 1. CRA, T4001 Employers' Guide, Payroll Deductions and Remittances, read 2026-10-24: remitter type from the average monthly withholding amount two calendar years ago (regular under $25,000, quarterly under $3,000 with a perfect compliance history, accelerated threshold 1 $25,000 to $99,999.99, threshold 2 $100,000 or more); due dates for each type; penalties of 3%, 5%, 7% and 10% for late remittances, generally on the part over $500. --- Published 2026-10-24. Web page: https://www.bookkeepingforsmallbusiness.com/month-end-close-checklist/payroll/canada Part of [Month-end close: payroll liabilities by jurisdiction](https://www.bookkeepingforsmallbusiness.com/month-end-close-checklist/payroll).