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• You paid the CRA too little (under-remitted)
• You paid too much (over-remitted)
• Your remittance (payment) was not applied to your account correctly
• You made an error in calculating deductions

You paid the CRA too little (under-remitted)

You may notice, during the year or when you prepare your information returns, that you have remitted less than you should have. You must remit the required amount immediately. A penalty may be charged for the late payment, including interest.

Learn more: How to remit (pay).

You paid too much (over-remitted)

• In the current year: Option 1

  If you remitted more than you should have, you can use the overpayment towards a future payroll period in the current year, if possible.

  You can request a refund for the amount which has been over-remitted by using any of the following methods:

  • CRA sign-in services
  • By telephone

  To make your request by mail:

  • Send a letter to your tax centre

• In the previous year: Option 2

  If the overpayment is in the previous year, you must provide an explanation to request a transfer or refund by using any of the following methods:

  • CRA sign-in services
  • By telephone

  To make your request by mail:

  • Attach the explanation to your paper information return
  • Send a letter to your tax centre

  If there is a difference between your remittance total for the year and the amount reported on the corresponding T4 Summary, you will receive a PD4R, Tax deduction, Canada Pension Plan and Employment Insurance discrepancy notice

Your remittance (payment) was not applied to your account correctly

A misallocated payment is a payment that was posted to an account incorrectly. This type of situation does not fall under remitting errors.

If you discover an error with a payment made through a financial institution, you should first contact the financial institution to determine if a correction can be made if the payment is still being processed.

Learn more: Resolve an issue with a payment.

You made an error in calculating deductions

You may realize that you have overdeducted or underdeducted EI, CPP or income tax. As soon as you know that the required amount was not deducted, you should notify your employee.

This type of situation does not fall under remitting errors.

To correct a deduction error or a salary overpayment:

• If you have not filed the information return, refer to: Make corrections before filing
• If you already filed the information return, refer to: Make corrections after filing