A client calls you on the morning of the 15th. Their payroll remittance is due, but they are not sure whether they are supposed to remit monthly or quarterly. The bookkeeper left, and the paperwork does not show which threshold their business falls under. If you have ever had this conversation, you know that the CRA payroll remittance schedule can cause real stress when it is not clearly understood.
This article covers the standard and accelerated remittance rules, the thresholds that trigger each schedule, and the consequences of missing a deadline. Whether you run a small contracting firm in Ontario or manage a growing business with many employees, understanding the Canadian payroll remittance schedule is essential for staying compliant and avoiding CRA penalties.
Understanding the CRA Payroll Remittance Schedule
The CRA requires employers to remit source deductions (CPP, EI, and income tax) to the Receiver General on a regular basis. The frequency depends on your average monthly withholding amount (AMWA). The CRA classifies remitters into four categories: quarterly, monthly, accelerated (twice-monthly), and accelerated (more frequent). Your AMWA determines which category applies.
Most businesses start on a monthly or quarterly schedule, but as payroll grows, the CRA may move you to accelerated remittance without notice. Knowing the thresholds helps you plan ahead rather than react to a compliance letter.
The Four Remittance Schedules
| Remitter Category | Average Monthly Withholding Amount | Remittance Frequency | Due Date |
|---|---|---|---|
| Small (Quarterly) | Less than $3,000 | Quarterly | 15th day of the month following the end of the calendar quarter |
| Medium (Monthly) | $3,000 - $24,999.99 | Monthly | 15th day of the following month |
| Large (Accelerated) | $25,000 - $99,999.99 | Twice monthly | Period 1st-15th: due 3rd business day after the 15th; Period 16th-end of month: due 3rd business day after the end of the month |
| Very Large (Accelerated) | $100,000 or more | Accelerated (on each payday if pay periods are more than twice a month; otherwise twice monthly) | On each payday or twice monthly as above |
Note: Thresholds are reviewed periodically by CRA. Always confirm current rates on the CRA website or through your payroll provider.
Regular Remittance Schedule: Monthly and Quarterly
Most small to medium-sized businesses fall under the regular (monthly) remittance schedule. If your AMWA is at least $3,000 but less than $25,000, you remit once a month on the 15th of the following month. For example, January payroll deductions are due by February 15th.
If your AMWA is under $3,000, you qualify for quarterly remittance. The quarters end on March 31, June 30, September 30, and December 31. Remittances are due within 15 days after the end of each quarter. Quarterly remittance can ease cash flow for very small employers, but it also means a larger lump sum due every three months.
How to Calculate Your AMWA
Your AMWA is the average of all source deductions (CPP, EI, and income tax) you withheld in the previous two calendar years. If your business is new or you have not been in business for two full calendar years, the CRA uses an estimate based on expected withholdings. To calculate:
- Add total source deductions for the two previous calendar years.
- Divide by 24 (months).
- Compare the result to the thresholds above.
Example: A small construction company in Ontario had total payroll withholdings of $48,000 in 2024 and $52,000 in 2025. Sum = $100,000. AMWA = $100,000 / 24 = $4,166. This places the company in the monthly category (between $3,000 and $24,999).
Accelerated Remittance: Who Qualifies and How It Works
Accelerated remittance applies when your AMWA is $25,000 or more. The CRA expects larger employers to remit more frequently to smooth out cash flow and reduce the government's credit exposure.
Twice-Monthly Accelerated Schedule
For AMWA between $25,000 and $99,999.99, remittances are due twice a month:
- For pay periods ending on the 1st through the 15th: remit by the 3rd business day after the 15th.
- For pay periods ending on the 16th through the end of the month: remit by the 3rd business day after the end of the month.
This means you could have up to 24 remittances per year instead of 12. Many businesses find this schedule challenging to track manually, especially when pay periods vary.
Very Large Accelerated Schedule
If your AMWA is $100,000 or more, you must remit on each payday if your pay periods are more frequent than twice a month (e.g., weekly or biweekly). If you pay less frequently, you follow the twice-monthly schedule instead. The CRA sends a notice to businesses that move into this category, but it is wise to self-monitor.
Real-World Scenario: A Growing Business
Consider a 12-person digital agency in Vancouver. In 2024, their monthly payroll withholdings averaged $15,000. They were on a monthly remittance schedule. In 2025, they hired six more staff, and average withholdings hit $28,000. They crossed the $25,000 threshold. The CRA notified them in March that they were now on accelerated remittance. The owner initially missed the April 15th remittance because they expected only one payment. Late-filing penalties plus interest cost them over $400. Had they tracked AMWA proactively, they could have adjusted their schedule before the CRA notice.
Consequences of Missing the Payroll Remittance Deadline
CRA takes payroll remittance seriously. Late payments trigger a penalty of 3% of the amount due, plus 1% per full month late up to a maximum of seven months (total 10%). On top of that, interest compounds daily on both the principal and the penalty. For a business that is cash-strapped, these costs add up fast.
Beyond financial penalties, habitual lateness can lead to CRA audits, garnishment of accounts, or even legal action. Directors may be held personally liable for unremitted deductions under subsection 227.1 of the Income Tax Act. This is not a situation you want to face.
Manual vs Automated Remittance Tracking
| Aspect | Manual Tracking (Spreadsheets & Calendar) | Automated Payroll Software (e.g., Awditify) |
|---|---|---|
| Calculation of AMWA | Requires manual data from past T4 summaries; prone to error | Automatically calculates AMWA based on payroll history |
| Reminder for due dates | You set calendar reminders; easy to miss | Built-in notifications and dashboard alerts |
| Changes in threshold | You rely on CRA notices; can miss a change | Software checks thresholds and suggests schedule updates |
| Filing efficiency | File separately via CRA My Business Account or paper | Submit remittances directly from the software with CRA-integrated filing (where supported) |
| Audit trail | Spreadsheets can be lost or corrupted | Secure, searchable audit trail"; |
Automation reduces the risk of human error. For example, one bookkeeper assigned to a monthly remittance schedule missed the transition to accelerated remittance by two months because the CRA letter went to spam. The automated payroll system in Awditify flagged the change based on the AMWA calculation and prompted early action.
How to Determine Your Remittance Schedule
Follow these steps to find your remittance obligation:
- Gather payroll data for the last two calendar years: total CPP, EI, and income tax withheld.
- Calculate your AMWA using the formula above.
- Compare your AMWA to the current thresholds (see table above).
- Check for any CRA notices that may have changed your frequency.
- Set up a remittance calendar with due dates, noting that accelerated schedules have two due dates per month.
If you use payroll software, most platforms include a payroll tax settings module that allows you to configure and monitor remittance frequency. For Awditify users, the payroll tax settings guide walks through how to set up your remittance schedule and map it to your payroll runs.
Using Canadian Payroll Software to Stay on Schedule
Manual payroll remittance management is possible, but it requires discipline. For busy business owners and accounting firms managing multiple clients, a dedicated Canadian payroll solution simplifies the process. Awditify's payroll feature automatically calculates source deductions, tracks remittance due dates, and generates T4/T4A slips at year-end. It also handles the payroll remittance schedule by adjusting reminders based on your AMWA and notifying you when thresholds change.
For example, when you process payroll in Awditify, the system knows if you are on a monthly or accelerated schedule. It shows upcoming payments on the dashboard and can even generate the remittance file for direct submission through your bank or CRA Web Forms. This eliminates the back-and-forth of logging into CRA separately.
Frequently Asked Questions
What is the CRA payroll remittance schedule?
The CRA payroll remittance schedule sets how often employers must remit source deductions (CPP, EI, income tax) to the government. Frequency depends on your average monthly withholding amount (AMWA). Categories are quarterly (under $3,000), monthly ($3,000 to $24,999.99), accelerated twice-monthly ($25,000 to $99,999.99), and accelerated per payday ($100,000+).
What happens if I miss a payroll remittance deadline?
CRA imposes a penalty of 3% of the overdue amount immediately, plus 1% for each full month late (max 10%). Interest compounds daily on both the principal and penalty. Repeated lateness can trigger CRA enforcement actions, including director liability. If you missed a deadline, pay immediately and consider filing a voluntary disclosure to reduce penalties.
How do I calculate my average monthly withholding amount (AMWA)?
Add total source deductions (CPP, EI, income tax) from the previous two calendar years, then divide by 24. For new businesses, use expected annual withholdings divided by 12. Compare the result to the thresholds: under $3,000 quarterly; $3,000 - $24,999 monthly; $25,000 - $99,999 accelerated twice-monthly; $100,000+ accelerated per payday.
Can I change my remittance frequency if my business grows or shrinks?
Yes. If your AMWA drops below a threshold for two consecutive calendar years, you can request a change to a less frequent schedule. If your AMWA increases, CRA may reclassify you, but you can also voluntarily request accelerated remittance. Use Form PD7D (Statement of Account for Current Source Deductions) to monitor your balance and request adjustments.
Which software helps Canadian businesses manage payroll remittance schedules?
Canadian-built platforms like Awditify are designed for this. Its payroll module automatically tracks your AMWA across pay runs, sends reminders before due dates, and adjusts the remittance schedule when thresholds change. You can also file T4s directly. For a tool that works with CRA timelines, try Awditify's payroll feature.
What to Do Next
The CRA payroll remittance schedule is not optional. Your obligation is determined by your average monthly withholding, and the penalties for missing deadlines are steep. The simplest way to avoid the stress is to use a Canadian payroll system that monitors thresholds, automates reminders, and integrates with your bookkeeping.
If you are evaluating payroll software for your firm or small business, compare how each platform handles remittance schedules. Awditify provides clear dashboards, accurate AMWA tracking, and specific guides like how to use payroll tax forms to keep you compliant. For a deeper comparison of payroll tools for Canadian businesses, see our guide to the best payroll software for Canadian small business (2026 guide).
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