Summary
Every Ontario employer must send employee source deductions and employer contributions (income tax, CPP and EI) to the CRA on a schedule set by its remitter type: quarterly, regular (monthly), or accelerated threshold 1 or 2. Your type depends on your average monthly withholding amount from two years earlier, and late payments trigger penalties of 3% to 10% (or 20% for repeat failures made knowingly or through gross negligence). This guide explains each schedule, 2026 rates, due-date rules, penalties, Ontario's Employer Health Tax and payroll account (BN registration) setup, with an interactive calculator.
Running payroll in Ontario means more than paying your team on time. Every pay period, you deduct income tax, Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums from employees' pay, add your own employer share, and send the total to the Canada Revenue Agency. That money is held in trust for the government, which is why the CRA treats late or missing remittances so seriously.
The tricky part is timing. A small café in Kingston might remit four times a year, a growing tech company in Ottawa once a month, and a large manufacturer in Windsor up to four times a month. Get your schedule wrong, and penalties start at 3% from the very first day late.
This guide explains how CRA payroll remittance schedules work for Ontario employers, in plain English. If you'd rather hand it off, Ledgerive's bookkeeping services include payroll processing and on-time remittances for businesses across Ontario.
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1. What a Payroll Remittance Includes
- Income tax withheld: federal and Ontario income tax (including the Ontario Health Premium) deducted from employees' pay.
- CPP contributions: the employee's share plus an equal employer share, including second additional CPP (CPP2) on earnings above the first ceiling.
- EI premiums: the employee's premium plus the employer's share, generally 1.4 times the employee amount.
These amounts are remitted together to the CRA under your payroll account. Ontario Employer Health Tax and WSIB premiums are separate and paid to different agencies (see section 8).
2. The Four Remitter Types and Their Due Dates
| Remitter type | Who it applies to | Remitting period | Due date |
|---|---|---|---|
| Quarterly | Small employers with AMWA under $3,000, or new employers with monthly withholding under $1,000, and a perfect compliance record | Calendar quarter | April 15, July 15, October 15, January 15 |
| Regular | AMWA under $25,000 (the default for most small and mid-sized businesses) | Calendar month | 15th of the following month |
| Accelerated, threshold 1 | AMWA of $25,000 to $99,999.99 | 1st–15th; 16th–end of month | 25th of the same month; 10th of the next month |
| Accelerated, threshold 2 | AMWA of $100,000 or more | 1st–7th, 8th–14th, 15th–21st, 22nd–end | 3rd working day after each period ends |
Important: the schedule is based on when employees are paid, not when they did the work. A regular remitter paying wages on November 28 must remit those deductions by December 15.
3. How the CRA Sets Your Remitter Type
- AMWA: total remittances for the year two years earlier, divided by the number of months (up to 12) in which a remittance was required. Your 2027 schedule is based on 2025 remittances.
- Annual review: the CRA reviews payroll accounts each November and notifies employers whose type changes for the next year.
- Associated corporations: their withholdings are combined, so a group of related companies can be pushed into an accelerated schedule together.
- Perfect compliance: quarterly status requires 12 months with no late remittances, penalties or overdue information returns, and no GST/HST balance owing or overdue returns.
- Growth catches up with you: a fast-growing business may remit far more than its assigned schedule suggests, but the type only changes once the two-year-old data catches up.
4. 2026 CPP and EI Figures and a Worked Example
| Item | 2026 figure |
|---|---|
| CPP employee and employer rate (each) | 5.95% |
| Year's maximum pensionable earnings (YMPE) | $74,600 |
| Basic exemption | $3,500 |
| Maximum employee CPP contribution | $4,230.45 |
| CPP2 rate (each) on earnings from $74,600 to $85,000 | 4.00% (maximum $416.00) |
| EI employee premium rate | 1.63% |
| Maximum insurable earnings | $68,900 |
| Maximum employee EI premium | $1,123.07 (employer pays 1.4×) |
Income tax withheld depends on the employee's TD1 claims and pay frequency; use the CRA's Payroll Deductions Online Calculator (PDOC) or payroll software. CPP stops once an employee reaches the annual maximum, which can reduce later remittances for high earners.
5. Due-Date and Payment Rules
- Weekends and holidays: if a due date falls on a Saturday, Sunday or public holiday recognized by the CRA, the payment is on time if received or processed by a Canadian financial institution by the next business day.
- When payment counts as received: for online banking, the date your bank credits the CRA; for mail, the date the CRA receives it. Allow processing time.
- Electronic payments over $10,000: the law requires remittances over $10,000 to be paid electronically unless you can't reasonably do so, with a $100 penalty per failure; the CRA has said it is not applying this penalty for now and will give advance notice of any change.
- Nil remittances: if you have no payroll in a period, tell the CRA (for example, through My Business Account) to avoid compliance letters.
6. Late-Remittance Penalties
- Failure to deduct: generally a 10% penalty on amounts you should have withheld, and you may owe the employee's share too.
- Directors' liability: directors of a corporation can be held personally liable for unremitted source deductions.
- Relief: taxpayer relief may be available in limited circumstances beyond your control, but it's never guaranteed.
7. Interactive Remitter Type and Penalty Calculator
Estimate your likely remitter type and see what a late remittance could cost. Your official type is the one the CRA assigns.
A. Estimate your remitter type
B. Estimate a late-remittance penalty
8. Ontario-Specific Obligations
| Obligation | Paid to | Key points |
|---|---|---|
| Employer Health Tax (EHT) | Ontario Ministry of Finance | $1 million annual exemption for eligible employers; rates 0.98%–1.95%; monthly instalments if Ontario payroll exceeds $1.2 million; annual return due March 15 |
| WSIB premiums | Workplace Safety and Insurance Board | Required for most industries; rates and reporting frequency depend on industry and premium size |
| Ontario income tax and Health Premium | CRA (with federal deductions) | Withheld through payroll and included in your CRA remittance |
9. Payroll Accounts and BN Registration
- CRA business number first: your nine-digit business number is the base for every program account. Corporations receive one at incorporation; sole proprietors complete BN registration with the CRA.
- Open a payroll (RP) account before your first remittance is due: it appears as your CRA business number followed by RP0001.
- Multiple RP accounts: some employers open separate accounts for divisions or pay groups, but associated businesses still share one remitter type.
- Authorize your bookkeeper: give your payroll provider or accountant representative access through My Business Account so they can see due dates and balances.
- Year-end: T4 slips and the T4 summary are due by the last day of February; reconcile them to what you remitted.
10. An Ontario Employer's Payroll Calendar
| When | What's due |
|---|---|
| 15th of every month | Previous month's source deductions (regular remitters); EHT instalments for larger employers |
| January 15, April 15, July 15, October 15 | Quarterly remitters' payments |
| Last day of February | T4 slips to employees and T4 summary to the CRA |
| March 15 | Ontario EHT annual return |
| November–December | CRA remitter type review; check next year's schedule and CPP/EI rates |
Payroll is usually the largest cost and most frequent CRA deadline a business has, so it belongs in your cash flow plan. Our financial modeling services build payroll costs and remittance timing into forecasts, our business plan services include staffing plans for lenders and investors, and our fractional CFO services help growing companies manage it; see our fractional CFO onboarding playbook for Ottawa.
Industry guides with payroll considerations: bookkeeping for Windsor manufacturing (where payroll often triggers accelerated schedules), franchise business plans for Brampton investors and financial modeling for Mississauga real estate investors.
11. Frequently Asked Questions
When are CRA payroll remittances due?
It depends on your remitter type. Regular remitters pay by the 15th of the month after the pay was made. Quarterly remitters pay by April 15, July 15, October 15 and January 15. Threshold 1 accelerated remitters pay by the 25th for pay from the 1st to 15th and by the 10th of the next month for pay from the 16th to month-end. Threshold 2 remitters pay within three working days after the end of four periods each month.
What is the penalty for a late payroll remittance in Canada?
The CRA generally charges 3% if a remittance is 1 to 3 days late, 5% if 4 to 5 days late, 7% if 6 to 7 days late, and 10% if more than 7 days late or not remitted. A 20% penalty can apply to a second or later failure in the same calendar year if made knowingly or through gross negligence. Interest also applies.
How do I know my CRA remitter type?
The CRA assigns your remitter type based on your average monthly withholding amount (AMWA) from two calendar years earlier and reviews accounts each year. Your type and due dates appear on your CRA correspondence and in My Business Account. Under $25,000 is generally a regular remitter, $25,000 to $99,999.99 is threshold 1, and $100,000 or more is threshold 2.
Can a small business remit payroll quarterly?
Yes, if it qualifies. Small employers with an AMWA under $3,000 from two years earlier and a perfect compliance record for the past 12 months may remit quarterly, as may new employers with a monthly withholding amount under $1,000 and a perfect compliance record. The CRA generally notifies eligible employers.
Do I need a payroll account before hiring employees?
Yes. Before the first remittance is due, an employer needs a payroll program account (RP), which is added to the business's nine-digit CRA business number. If the business does not yet have a business number, BN registration and the payroll account can be completed together.
Summary
Your CRA payroll remittance schedule (quarterly, regular, or accelerated threshold 1 or 2) is set by your average monthly withholding amount from two years earlier. Remit based on pay dates, plan for weekends and holidays, pay electronically, and avoid penalties that start at 3% on day one. Keep BN registration and your payroll (RP) account under your CRA business number in order, and remember Ontario's EHT and WSIB obligations sit alongside your CRA remittances.
Get payroll and remittances handled properly
Ledgerive provides payroll, bookkeeping and CRA compliance support for employers across Ontario. Book a free 30-minute call or reach us directly.
Sources: CRA, When to remit (pay); CRA, Types of remitters; Ontario, Employer Health Tax; University of Calgary, 2026 payroll rates; CPA Canada, electronic payment penalties. Worked example is illustrative.