Managing the ins and outs of payroll can be a big undertaking, especially with so many important details. This article will help explain when to remit payroll deductions so you can ensure you're following the right steps at the right times.
To help make things easy, the links below will lead you to relevant areas of the Canada Revenue Agency (CRA) website.
We recommend referring directly to the information provided by the CRA to ensure the most accurate and up-to-date instructions are available to you at all times.
How Payroll Remittances Work
Use the dropdowns below to learn more about what remittances are and how to manage them.
Payroll remittances are an amount that you are required to pay to the Canada Revenue Agency (CRA) when you pay salaries or wages or give a taxable benefit to an employee. The remittance is a source deduction from the amount you paid to your employee. These deductions must be remitted to the CRA regularly and are based on the schedule and type determined by the CRA.
You can find your remitter type by logging in to your CRA My Business Account.
To learn about all the Different Types of Remitters, click here.
Once you have determined your remitter type, you can update it in Humi in your Company settings.
Having the correct schedule for your payroll remittances is essential. We want to ensure the most accurate information is always available to you, so here is a list of Remittance Due Dates straight from the CRA.
Using the Remittance Report
To help make the process a little simpler, you can use the Remittance Report in Humi by following the steps below:
- In Reporting, under the Payroll tab, select the Remittance Report
You can filter and edit the report's date range by annual, quarter, month, or per pay period
If you would like to export the data into an excel file, you can do so by clicking the Export Excel button on the top right corner
This report is a helpful tool to keep track of all remittances that have or will be sent on your behalf, according to your remittance schedule.
The Remittance Report displays all statutory remittance records for each pay period and when they're due such as:
- Income tax
Based on your company's remittance frequency, we recommend you review this report periodically to ensure that the remittances are always sent on time.
In cases where payrolls are run past the remittance due date or if you have elected to submit remittance on your own, the remittance transactions are not processed through Humi and will not show up on the report.
When you're ready to remit your payments, this can be done online through My Payment, the pre-authorized debit option in My Business Account. You can also do this using paper remittance vouchers in person at your bank (or financial institution), using a debit or credit card, mailing a cheque or money order, or by wire transfer for non-residents.
Important NoteIt's extremely important to remit at the correct frequency, as CRA's late fines can be substantial. Even when using a third party to remit on your behalf, it's your responsibility to provide the correct remitter frequency so that your payments are on time. Click here for a list of Remittance Due Dates.
The deductions and income reported for your employees are based on a Year-to-date (YTD) amount. YTD amounts are cumulative payroll-related amounts used for record-keeping and reporting purposes. They're sums of the amounts from the beginning of the year to the specified pay period. Typical YTD values include regular pay, commission, bonus, tax, CPP, EI, etc.
As an employer, you need to use this information to complete a T4 slip for each employee and complete a T4 summary form. Information generally contains employment income, commissions, taxable allowances and benefits, and any other remunerations.
There are two ways to file T4 Returns: