Every business with a payroll account has a remitter type, and that type — not just the pay schedule — determines exactly when source deductions actually need to reach the CRA.

Why This Matters More Than Most Recurring Deadlines

Payroll deductions aren't the business's own money — they're amounts withheld from employees and held in trust for the CRA. That's part of why remittance penalties can arrive quickly once a deadline is missed, and why treating payroll remittances as a routine bill rather than a trust obligation is a mistake worth avoiding.

What a Remitter Type Actually Is

For most existing employers, the CRA assigns a remitter type based on their average monthly withholding amount (AMWA), generally calculated from payroll deduction totals going back two calendar years — not just the prior month or the current year. This determines how often remittances are due, separate from how often employees are actually paid; a business paying employees weekly doesn't necessarily remit weekly. New employers follow a separate rule: a payroll account open for less than 12 months can qualify for quarterly remitting without having to apply, provided the monthly withholding amount stays under a set threshold and the employer maintains a perfect compliance record. A new employer that doesn't meet both conditions is treated as a regular remitter instead.

What Date Actually Determines the Remittance Period?

Remittance timing is based on the date employees are actually paid, not the period the wages were earned in. If a pay period ends in one month but employees aren't paid until the following month, those deductions belong to the remittance period tied to the later payday — not the earlier pay period. This distinction trips people up more than almost anything else in payroll timing.

The General Tiers of Remitter Types

Most small businesses fall into a regular remitting schedule, submitting one remittance per month. As a business's payroll grows, the CRA can move it into an accelerated remitter category, requiring more frequent remittances — twice a month at the first accelerated threshold, and tied even more tightly to each individual payday at the highest threshold, rather than a single fixed monthly count. A small number of very small employers with a clean compliance history can qualify for quarterly remittance instead of monthly.

Why the Remitter Type Can Change Without Warning

Because remitter type is based on payroll history, a business that grows its payroll significantly can be reassigned to a more frequent remittance schedule, communicated in writing. A business not watching for this notice can miss the transition to a new schedule and end up remitting late without realizing the rules changed underneath them.

What Gets Bundled Into Every Remittance

A payroll remittance covers the employee's withheld income tax, CPP contributions, and EI premiums, plus the employer's own matching share of CPP and EI. It's a single combined payment covering all of these obligations together, not separate payments for each component.

Why Remittance Timing Depends on Reliable, Current Payroll Records

Meeting a remittance deadline depends on payroll being calculated correctly and on time in the first place — a business with payroll records that are behind or unreconciled is set up to miss remittance deadlines regardless of how well the deadline itself is understood.

FAQ

What happens if a business remits payroll deductions late? Penalties apply, generally scaled based on how late the remittance is and whether the business has been late before, along with interest on the amount owing until it's paid.

Does a new business automatically know its remitter type? A new employer with a payroll account open for less than 12 months can generally remit quarterly if its monthly withholding amount stays under a set threshold and it maintains a perfect compliance record. If it doesn't meet both conditions, the CRA treats it as a regular remitter instead.

Can a business remit more frequently than its assigned type requires? Yes — remitting earlier or more often than required is accepted by the CRA and doesn't change the assigned remitter type, which is based on withholding amounts, not payment frequency chosen voluntarily.

Where can a business confirm its current remitter type and exact due dates? The CRA's online business services show the current remitter type directly, and the CRA also sends written correspondence when the type changes. Checking directly through those channels, or with a payroll provider, is the reliable way to confirm current requirements rather than assuming last year's schedule still applies.

Follow the system. File with confidence.