Chapter
4

How to remit payroll deductions

4
min read

How to remit payroll deductions

Now it’s time to remit your payments. This can be made online through My Payment, the pre-authorized debit option in My Business Account. You can also make this using paper remittance vouchers in person at your bank (or financial institution), using a debit or credit card, mailing a cheque or money order, or by wire-transfer for non-residents.

Here’s a list of government-approved third-party service providers.

When do you need to remit your employee payroll deductions?

When you pay salaries, wages, or give a taxable benefit to an employee, you have to make source deductions from that amount. Deductions must be remitted to the CRA regularly and are based on the schedule and type in which the CRA has determined. You can find out your remitter type here.

Below, we’ve provided a breakdown of remitting frequency, periods and due dates by type:

Remitting frequency, periods and due dates by remitter type

Source: Government of Canada

It’s extremely important to remit at the correct frequency, as CRA’s late fines can be substantial. Even when using a third party to remit on your behalf, it’s your responsibility to provide the correct remitter frequency so that your payments are on time❗

Reporting employee’s deductions and income

Year-to-date (YTD)

Year-to-date amounts are cumulative payroll-related amounts used for record-keeping and reporting purposes. They're sums of amounts from the beginning of the year to the specified pay period.

Typical YTD values include regular pay, commission, bonus, tax, CPP, EI, etc. As an employer, you need to use this information to complete a T4 slip for each employee and complete a T4 summary form. Information generally contains employment income, commissions, taxable allowances and benefits, and any other remunerations.

Two ways to file T4 Returns:

T4 Returns must be issued on or before the last day of February following the calendar year to which they apply. ✍ Many payroll processing services assist with the completion and filing of these forms as well as the source deduction calculations.