What to Expect If You Miss a CRA Payroll Remittance Deadline
If you're a business owner managing payroll, you know it's about more than just paying employees. You're also responsible for sending source deductions to the Canada Revenue Agency (CRA)—on time. But what if a deadline slips past you?
In this post, I’ll walk you through what happens if you miss a payroll remittance, what penalties and interest you could face, and how to prevent it from happening again.
What Are Payroll Remittances?
As an employer, you're required to deduct and remit the following each time you pay your employees:
Income tax
Canada Pension Plan (CPP) contributions
Employment Insurance (EI) premiums
These amounts must be submitted to the CRA based on your assigned payment frequency (monthly, quarterly, or accelerated). Missing your due date, even by a single day, can result in penalties.
CRA Penalties for Late Payroll Remittances
The CRA applies penalties depending on how late your payment is:
1–3 days late → 3% penalty
4–5 days late → 5% penalty
6–7 days late → 7% penalty
More than 7 days late or repeat offense → 10% penalty
Note: If you’re late more than once within the same year, the CRA can apply an additional 20% penalty for repeated failures to remit on time.
Interest Charges Add Up
Besides penalties, the CRA charges daily compound interest on any unpaid payroll amounts. This interest continues to grow until the full balance is paid and is based on a prescribed rate that can change quarterly.
Tips to Stay on Track
Here are a few ways I help clients avoid late payroll remittances:
Know Your Deadlines – Your remittance schedule depends on your payroll size and CRA classification. Make sure you’re clear on your due dates.
Pay Electronically – Using CRA My Business Account or your banking platform speeds things up and reduces mail delays.
Use a Payroll System – Automation helps ensure deductions are made and sent on time, even during busy periods.
Account for Holidays and Weekends – If a remittance date falls on a non-business day, make sure to pay by the last working day before.
Keep Clear Records – Always save your payment confirmations and payroll reports in case the CRA asks for documentation.
Final Thoughts
Payroll remittances are more than an administrative task—they’re a legal obligation. Late or missed payments can become costly very quickly, especially if it happens more than once.
If you're feeling overwhelmed by payroll responsibilities or just want a second set of eyes on your process, I’d be happy to help. I work with businesses across the Greater Toronto Area to keep them organized, compliant, and penalty-free.
Payroll Services Near You (Not Limited to These Areas):
I regularly work with clients in the locations below, but my services are available to many more regions as well.
