For Canadian small business owners, managing payroll source deductions can feel like a complex and time-consuming task. Between calculating CPP, EI, and income tax, and then figuring out how and when to remit them to the Canada Revenue Agency (CRA), it’s easy to get overwhelmed. Late or incorrect remittances can lead to penalties and interest, adding unnecessary stress to your already busy schedule.
At Padgett Business Services, we help thousands of Canadian entrepreneurs navigate these requirements with ease. This guide will provide you with a clear, step-by-step process for remitting your payroll source deductions online, ensuring you stay compliant and avoid costly mistakes.
Before You Begin: What You’ll Need
To ensure a smooth remittance process, have the following information ready:
- Your 15-character Payroll Program (RP) Account Number: It will be in the format 123456789RP0001.
- The exact amount of source deductions to be remitted: This includes both the employee and employer portions of CPP and EI, as well as the income tax withheld.
- The reporting period: The specific pay period for which you are remitting.
- Access to your online business banking or your CRA My Business Account credentials.
Pro Tip: Before making a payment, always log in to your CRA My Business Account to verify your current balance and remitter type. This will help you avoid any surprises and ensure you are remitting the correct amount by the correct deadline.
Understanding Your Remitter Type
The CRA assigns you a remitter type based on your average monthly withholding amount (AMWA) from two years ago. Your remitter type determines your remittance frequency and due dates. Here’s a quick overview:
Remitter Type |
Average Monthly Withholding Amount (AMWA) |
Remittance Frequency |
| Quarterly | Less than $3,000 (for existing employers) or less than $1,000 (for new employers) with a perfect compliance record | Quarterly |
| Regular | Less than $25,000 | Monthly |
| Accelerated Threshold 1 | $25,000 to $99,999.99 | Up to twice a month |
| Accelerated Threshold 2 | $100,000 or more | Up to four times a month |
How to Remit Online: Your Step-by-Step Guide
Method 1: Online Banking (The Most Common Method)
This is the most popular method for its convenience and speed. Payments are typically processed within 1-3 business days.
Step 1: Log in to Your Business Banking Portal
Access your financial institution’s online business banking platform.
Step 2: Navigate to Bill Payments
Find the section for “Pay Bills,” “Government Remittances,” or a similar title.
Step 3: Add the CRA as a Payee
Search for “Canada Revenue Agency” or “CRA.” You will see several options. It is crucial to select the correct one:
- For payroll remittances, choose “CRA (Revenue) – Payroll” or a similar option.
- For GST/HST, select “CRA (Revenue) – GST/HST.”
- For corporate taxes, choose “CRA (Revenue) – Corporation.”
Critical: Selecting the wrong payee can cause your payment to be misallocated, leading to penalties and interest.
Step 4: Enter Your Payroll Account Number
Input your 15-character payroll program (RP) account number. Double-check for accuracy.
Step 5: Submit Your Payment
Enter the remittance amount and the payment date. Save a copy of the confirmation number for your records.
Method 2: CRA My Business Account (The Most Secure Method)
Using your CRA My Business Account offers real-time balance verification and immediate payment confirmation.
Step 1: Access My Business Account
Log in to the CRA’s online portal using your banking credentials or CRA user ID.
Step 2: Navigate to Your Payroll Account
From the account summary, select your payroll (RP) account.
Step 3: Choose Your Payment Method
You can choose from several options:
- My Payment: Pay immediately using Visa® Debit, Debit Mastercard®, or Interac® Online.
- Pre-authorized debit: Set up automatic withdrawals from your bank account. This is ideal for recurring payments.
- Online banking redirect: This will take you back to your bank’s payment system.
Step 4: Complete the Payment Process
Follow the on-screen instructions for your chosen method. You will receive immediate confirmation that your payment has been received.
When to Remit: A Quick Reference Guide
Your remittance due date depends on your remitter type:
Remitter Type |
Due Date |
| Quarterly | 15th day of the month following the end of the quarter |
| Regular | 15th day of the month following the month you paid your employees |
| Accelerated Threshold 1 | 25th day of the same month (for pay in the first 15 days) and the 10th day of the next month (for pay in the rest of the month) |
| Accelerated Threshold 2 | The third working day after the end of each of the four weekly periods |
Important: If a due date falls on a weekend or public holiday, your payment is due on the next business day.
Troubleshooting Common Remittance Issues
Issue |
Cause |
Solution |
| Payment Not Found | Incorrect payroll account number or payee selected. | Verify the account number and payee with your bank. If the issue persists, contact the CRA with your payment confirmation. |
| Late Payment | Payment submitted after the bank’s cutoff time. | Submit payments before 2 PM for same-day processing. If late, the CRA may apply penalties and interest. |
| Nil Remittance | No employees paid during the period. | You must still report a nil remittance by the due date using your My Business Account, the TeleReply service, or by mail. |
Beyond Remittances: Streamline Your Entire Payroll Process By Outsourcing
Mastering online remittances is a great first step, but it’s just one piece of the payroll puzzle. Imagine how much more time you could save and how much more confident you could be in your compliance if you outsourced your payroll to a dedicated partner who could help manage your entire payroll process.
At Padgett Business Services, we offer comprehensive payroll solutions that go beyond simple remittances. We help you with:
- Accurate payroll calculations
- Timely remittances
- T4 preparation and filing
- Record of Employment (ROE) preparation
- Ongoing support and advice
Stop Worrying About Payroll and Start Focusing on Your Business
Avoiding the complexities of payroll allows you to get back to what you do best – running your business. Our clients enjoy peace of mind knowing their payroll is managed by experts, and they save valuable time every month.
Ready to take payroll off your plate? Find your nearest Padgett office and discover how we can help you streamline your payroll and tax strategy.