Frequently asked questions – Payment on filing


What is payment on filing?

Payment on filing (PoF) is a new procedure for eligible employers who meet 3 criteria. Those employers can use PoF to send a reconciliation payment by the last day of February without being subject to a penalty or interest.

What if the last day of February falls on a weekend?

The deadline will extend to the first business day of March.

Are you eligible to use PoF?

You are eligible to use PoF if you meet all 3 of the following criteria:

  • Your reconciliation payment is less than 1% of your total annual remittances for the applicable tax year
  • As an employer, you have perfect payroll compliance in the applicable tax year:
    • no late or outstanding remittances
    • no assessments in the applicable year
    • all T4 information is filed on or before the due date
  • You are in any of the following circumstances:
    • You have employees who are paid stock-based remuneration
    • You rely on 3rd-party information for insurance, health benefits, broker information, taxable benefits and/or automobile fleet mileage
    • You have employees that reside in other tax jurisdictions
How do you make a PoF payment?

You can make a payment using one of the following methods:

  • MyBA (pre-authorized debit)
  • My Payment
  • Attach a cheque to your T4 summary, and mail it to the Canada Revenue Agency.
  • Pay by cheque - Include your account number in the memo line and clearly indicate it is for PoF
  • If paying in person at a financial institution or a Canada Post outlet , contact the Business Enquiries line at 1-800-959-5525 to ask for Form PD7R Remittance Notice. It will take about 7 to 10 days for your Form PD7R to arrive by mail
How can you find your compliance history?

You can find your compliance history using any of the options below to make sure that all of your remittances were paid on time and that you were not subject to any penalties:

If you are affected by a circumstance that is not listed, are you still eligible to use PoF?

At this time, PoF can only be used in the circumstances outlined above.

Will you receive a penalty if your PoF is 1% or more of your total annual remittances for the tax year?

Yes, all PoF payments that are equal to 1% or more will be penalized from the due date of your final remittance, according to the late-remitting penalty guidelines in Employers’ Guide RC4120 - Filing the T4 slip and Summary.

If you have multiple businesses and one of them was assessed a late-remittance penalty, will you still be eligible to use PoF for your other businesses?

A late-remittance penalty will only affect the eligibility of the business with the RP extension that incurred the penalty. The penalty will not affect any other program account, even if it has the same 9-digit business identifier.

As an example, if your business with business number 123456789 RP 0001 incurred a late-remittance penalty, it will not be eligible for PoF. However, if your other business with business number 123456789 RP 0002 has perfect payroll compliance, it will be eligible to use PoF.

In addition to the maximum of 1% of a business’s total annual remittances, is there a minimum annual remittance to qualify for PoF? For example, if one employee uses stock options, leading to a PoF of $100, would that business still qualify?

There is no minimum required for PoF. If an employer identifies that a payment is for PoF, the usual penalty/interest will not be applied (unless there is a negative compliance history).

You have two payroll accounts under the same BN. Only one is eligible for PoF, while the other is not. You plan to make a PoF payment, as well as a second PAYDAC payment. When sending your payments, can you give the Canada Revenue Agency (CRA) one cheque?

If you are paying by cheque, then yes, you can make one payment. However, please include the related remittance vouchers, since the CRA needs them to make sure the payment is allocated to the proper account. If you are paying electronically, you will need to make 2 payments.

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