Table of Contents
- What You’ll Need Before Your First Remittance
- CRA Payroll Remittance Deadlines 2024: When Your Payment Is Due
- How to Calculate CPP, EI, and Income Tax Withholding
- CRA My Business Account Payroll Setup: Step by Step
- How to Pay Your Payroll Source Deductions to the CRA
- Penalties for Late Payroll Remittances Canada: What You Owe When You Miss
- Common Mistakes Kitchener Employers Make With CRA Payroll Remittances
- Frequently Asked Questions
Last Updated: September 30, 2026
What You’ll Need Before Your First Remittance
Handling CRA payroll remittances in Kitchener starts with one thing: a payroll deductions account. If you have just hired your first employee, you need this account before the first paycheque goes out, not after.
Here is what to gather before you file anything:
- Your 15-character CRA payroll program account number (it ends in RP0001)
- Your remittance due date, which depends on your remittance frequency
- Total source deductions withheld: CPP, EI, and income tax
- Your business number and online banking access
- A record of each pay period, including gross pay and deductions
At HK Accounting, we open payroll accounts for new employers across the Greater Toronto Area every month. The paperwork is short. The mistakes are what cost money.
Never issue a paycheque before your payroll account exists. Without an RP number, you cannot remit, and the CRA treats the missed deduction as an amount you owe personally.
CRA Payroll Remittance Deadlines 2024: When Your Payment Is Due
Your remittance deadline depends on your remittance frequency, which the CRA sets based on your average monthly withholding. Most new and small employers fall into the regular remittance category.
The CRA guide on remitting payroll deductions sets out the rule clearly: regular remitters pay by the 15th of the month following the pay period. If you pay staff on the last day of the month, the money is due by the 15th of the next month.
Three frequencies exist:
- Quarterly: for very small withholding amounts, due by the 15th of the month after each quarter
- Regular: monthly, due by the 15th of the following month
- Accelerated: twice monthly or up to four times a month, for larger employers
Most Kitchener shops with one to ten staff stay on the regular schedule. Confirm yours in writing before your first pay run.
How to Calculate CPP, EI, and Income Tax Withholding
Each paycheque carries three deductions, and each one follows its own formula. Getting them right keeps your remittance accurate and your T4 slips clean at year end.
Canada Pension Plan (CPP) is calculated on pensionable earnings up to the yearly maximum. Both you and the employee contribute, and you remit both halves together.
Employment Insurance (EI) is calculated on insurable earnings up to the yearly maximum. You pay a multiplier on top of the employee’s share.
Income tax comes from the CRA’s payroll deduction tables, based on the employee’s federal and provincial claim codes.
Use the CRA payroll deductions online calculator to check your numbers before every remittance. It handles CPP, EI, and tax in one pass.
| Deduction | Who Pays | Remitted By |
|---|---|---|
| CPP | Employee and employer | Employer |
| EI | Employee and employer | Employer |
| Income tax | Employee only | Employer |
Set up a separate bank account for source deductions. Move the withheld amounts there the day you run payroll. When the 15th arrives, the money is already set aside.
CRA My Business Account Payroll Setup: Step by Step
The fastest way to manage remittances is through CRA My Business Account. Setup takes about twenty minutes if your business number is already registered.
- Sign in to My Business Account with your CRA user ID and password
- Select your business number from the list
- Choose “Payroll” from the main menu
- Add your RP account if it is not already linked
- Set up direct deposit so refunds and adjustments land faster
- Review your remittance frequency and due dates
- Save your confirmation number for each filing
Once set up, you can view balances, file remittances, and download statements without calling the CRA. The CRA My Business Account login page walks you through registration if you are starting from scratch.
How to Pay Your Payroll Source Deductions to the CRA
You have four payment options, and the right one depends on how your business already banks.
- Online banking: add the CRA as a payee using your RP account number
- My Business Account: pay directly from the portal
- Pre-authorized debit: the CRA pulls the amount on a set date
- Credit card via a third-party provider: useful in a pinch, but fees apply
Online banking is the most common choice for small employers. Set the payee once and the payment takes two minutes each month.
Whichever route you pick, keep the confirmation number. If a payment goes missing, that number is your proof.
Penalties for Late Payroll Remittances Canada: What You Owe When You Miss
Late remittances trigger penalties and interest, and the CRA applies them automatically. The penalty grows with each repeat failure.
The CRA page on payroll penalties and interest explains the structure: a percentage penalty applies based on how many days late the payment is, and a higher rate applies if you have missed remittances before. Interest compounds daily on top of the penalty.
The amounts scale with what you owe, so a small shop can still face a painful bill. Repeated failures can also lead to a demand to file and, in serious cases, director liability.
A missed remittance is never just the amount you owe. Penalty plus interest can turn a manageable bill into a cash flow problem within a few months.
Common Mistakes Kitchener Employers Make With CRA Payroll Remittances
The same errors show up again and again in owner-operated businesses. Catching them early saves money and stress.
- Missing the 15th because payroll ran late
- Using the wrong remittance frequency after a staffing change
- Forgetting to remit the employer’s share of CPP and EI
- Failing to update claim codes after an employee’s situation changes
- Letting a departing employee’s final pay slip go unfiled
One more: treating source deductions as operating cash. That money was never yours. Spending it creates a shortfall the CRA will collect, with penalties attached.
If your records are behind, or a CRA letter has arrived, HK Accounting handles catch-up payroll and remittance work for trades, construction, and small manufacturing firms. We file on schedule, correspond with the CRA on your behalf, and keep a filing calendar so nothing slips. If a filing is late because of our error, we cover the penalties and interest.
Frequently Asked Questions
What is the deadline for CRA payroll remittances in Canada?
Your deadline depends on your remitter type. Regular remitters with a monthly withholding average under $25,000 pay by the 15th of the following month. Quarterly remitters (under $3,000 average) pay by the 15th of the month after each quarter ends. Threshold 1 remitters pay by the 25th of the following month, and Threshold 2 remitters pay by the 10th of the following month. The CRA assigns your type when you register.
What happens if I miss a payroll remittance deadline in Kitchener?
The CRA charges a 10% penalty on the amount owing the first time you are late, and 20% for each repeat failure within a calendar year. Interest also accrues daily on both the unpaid amount and the penalty itself. Unlike income tax, payroll deductions are held in trust for employees, so the CRA treats late remittances seriously and can pursue directors personally for unremitted amounts.
How do I pay my payroll source deductions to the CRA online?
You can pay through CRA My Business Account, your bank’s online business banking portal, or a third-party payment provider. In My Business Account, select ‘Payroll source deductions’ under the Pay Now menu, enter your remittance period, and confirm the amount. Bank payments usually post within one to two business days, so schedule ahead of the deadline to avoid interest charges.
Can HK Accounting help with payroll remittance filings in Kitchener?
HK Accounting provides payroll processing, CPP, EI and income tax source deduction calculations, and CRA remittance filings for small and mid-sized businesses across Ontario. Their team maintains a filing calendar for each client, corresponds with the CRA on your behalf, and covers penalties and interest if a filing is late because of their error. Book an appointment to discuss your payroll setup.
CRA payroll remittances punish delay more than almost any other filing. The rules are not complicated, but the deadlines do not move. HK Accounting processes weekly, biweekly, and monthly payroll, files CRA remittances on schedule, and maintains a filing calendar for every client covering corporate returns, HST, and slips. Book an Appointment with HK Accounting and keep your remittances clean, on time, and off your plate.