If you’ve ever had a fleeting panic about missing payroll remittance due dates or wondered about the differences between threshold remitters, you’re in the right place.
Dive into this guide to keep your payroll spot-on and never miss a beat—or a deadline!
Table of Contents
What is Payroll Remittance?
Simply put, payroll remittance is about sending (or remitting) the source deductions you’ve taken from your employees’ pay to the Canada Revenue Agency (CRA). It ensures that employee contributions to CPP, EI, and income tax are appropriately paid.
But it’s not just about forwarding money. It’s about timelines, understanding your business type, and making sure you’re on the right side of the CRA. With various remittance schedules, there’s more to it than meets the eye.
Threshold 1 Remitter: A Breakdown:
As a threshold 1 remitter, your business is in its early stages. You’re paying less than $25,000 in deductions—based on your average monthly withholding amount two calendar years ago.
Due Dates: For threshold 1, you get until the 15th of the month following the month you made the deductions to remit. So, if you make deductions in June, the due date is July 15th.
Transitioning to Threshold 2 Remitter:
Growing businesses may find themselves surpassing that $25,000 threshold. Welcome to threshold 2! Here, you’ll need a sharper pencil when marking your calendar.
Due Dates: As a threshold 2 remitter, you’ll need to remit semi-monthly. For deductions made from the 1st to the 15th of the month, remit by the 25th of the same month. For deductions from the 16th to the end of the month, remit by the 10th of the following month.
The Accelerated Remitter: Fast-Track Payroll Management:
When your business remits more than $100,000 monthly (based on the average two years prior), you’re in the accelerated zone. This pace means more frequent remittance but also signifies your business’s growth trajectory.
Due Dates: Accelerated remitters have two categories. For Threshold 1 Accelerated, remit by the 25th of the same month for deductions made from the 1st to the 15th. For the 16th to the end of the month, remit by the 10th of the following month. For Threshold 2 Accelerated, it’s a tad different. Deductions from the 1st to the 7th need to be remitted by the 10th, and so on.
Quarterly Remitters:
Are you a smaller business with deductions under $3,000 annually? You’re a quarterly remitter. While you’ve fewer remittance dates to worry about, staying compliant is still vital.
Due Dates: Typically, remit by April 15th, July 15th, October 15th, and January 15th for the previous quarter’s deductions.
Clarity on Due Dates: Payroll Remittance Deadline Essentials:
Missing a payroll remittance deadline isn’t just an “oops” moment; it can lead to penalties. Knowing your remitter category and setting reminders is crucial for members, each category—threshold 1, threshold 2, and accelerated—has its schedule. Adhering to them ensures you avoid unwanted late fees and maintain a healthy relationship with the CRA.
How to Adapt to Changing Payroll Remittance Due Dates:
Dates can change based on public holidays or unforeseen circumstances. Keeping an ear to the ground and regularly checking the CRA’s updates will keep you in the loop.
And if you’re transitioning between remitter categories? Stay informed. Know when you’re nearing a threshold so you can adapt your remittance schedule accordingly.
Know Your Remittance
Stay ahead of the curve, friends! Knowing your payroll remittance due dates is more than compliance—it’s about operational efficiency, peace of mind, and business success. With this guide, you’re well on your way to mastering this essential facet of Canadian business operations.
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