New remitter
Disclaimer
We do not guarantee the accuracy of this copy of the CRA website.
Scraped Page Content
New remitter
On this page:
What you should know if you are a new remitter
What type of remitter you are
Quarterly remitting option for new small employers
Your monthly withholding amount (MWA)
What it means to have a perfect compliance history
Due dates if you choose the quarterly remitting option
Examples of when you are not eligible for quarterly remitting
What you should know if you are a new remitter
If you are a new employer or have never remitted Canada Pension Plan (CPP) contributions, employment insurance (EI) premiums, or income tax deductions before, you must apply for a business number (BN) and register for a payroll program account with us, if you don't already have one. To find out how to apply for a BN and register a payroll program account, see Opening a payroll program account.
For more information on your responsibilities as an employer, see Employer responsibilities – The payroll steps. If you need help calculating or remitting your deductions, call 1-800-959-5525.
Even if you do not have a payroll program account, you still have to send your remittance by the due date. Send your first remittance by mail to one of the tax centres.
Make the payment payable to the Receiver General, and include a letter stating the following information, as applicable:
- you are a new remitter or this is your first remittance;
- the period the remittance covers;
- you need to open a payroll program account; and.
- your complete business name, address, and telephone number.
The CRA will send you a remittance form in the mail after it registers your account for your next remittance. If you do not receive a form in time for your next remittance, send in your remittance as described above. In your letter, tell us that you did not receive your remittance form.
What type of remitter you are
New employers are considered regular remitters. Send your remittance monthly unless the CRA tells you to remit using a different frequency. For more information, see Regular remitter.
Quarterly remitting option for new small employers
If you are an eligible new small employer who will pay remuneration for the first time in 2016 or later, you have the option to remit your payroll deductions quarterly (once every three months) instead of monthly for the first year.
You will be eligible if you meet the following conditions:
- your monthly withholding amount (MWA) is less than $1,000; and
- you have a perfect compliance history.
Your monthly withholding amount (MWA)
Your MWA is the total of the CPP, EI and income tax deductions plus your share of CPP and EI for the month that you will remit to the CRA.
Your MWA will be less than $1,000 if, for example, you have one employee earning an annual salary of $30,000. However, if you have two employees each earning an annual salary of $30,000, your MWA will be more than $1,000.
What it means to have a perfect compliance history
A perfect compliance history means that, over a 12-month period you have:
- made all deductions and remittances of CPP contributions, EI premiums and income tax on time;
- paid the goods and services tax/harmonized sales tax (GST/HST) on time; and
- filed your T4 information returns and your GST/HST returns on time.
Due dates if you choose the quarterly remitting option
You do not have to apply to remit quarterly. With the information you gave when you registered for your payroll program account, the CRA will determine if you qualify to remit quarterly. If you are eligible, we will tell you on your first remittance voucher, Form PD7A. As there may be a delay between registering and receiving your Form PD7A, you can send in your remittance quarterly if you meet the conditions. If you are not sure, send your remittances in monthly until we tell you, on your Form PD7A, that you are eligible for quarterly remitting. For more information about monthly remitting, see Regular remitter.
If you are eligible, and choose to remit quarterly, we have to receive your deductions on or before the 15th day of the month immediately following the end of each quarter. The quarters are:
- January to March
- April to June
- July to September
- October to December
The due dates are April 15, July 15, October 15, and January 15.
The CRA will review your MWA and compliance history after each quarter. If you no longer meet either of these conditions, you will have to remit monthly starting with the month after the end of the quarter in which the condition was not met. See examples below. To regain your quarterly remitting privilege, you will have to meet the requirements stated under Quarterly remitter.
Examples of when you are not eligible for quarterly remitting
Example 1 – MWA condition is not met
Zach’s Auto Repairs has a MWA of $500 for January 2016, $1,500 for February 2016, and $1,500 for March 2016. The employer’s quarterly remittance of $3,500 is due by April 15. Because the MWA for February was $1,000 or more, the employer will have to remit monthly beginning with their MWA for the month of April, which is due by May 15.
Example 2 – Perfect compliance history condition is not met
ABC Construction has a MWA of $500 for each of the months of January, February and March. The employer remits their quarterly remittance of $1,500 after April 15, which is considered late. Because the failure happened in April, ABC Construction may make their quarterly remittance for April, May and June by July 15. However, the company will have to remit monthly beginning with their MWA for the month of July, which is due by August 15.
- Date modified:
- 2016-01-26