Late remitting/Failure to remit

We can assess a penalty when either of the following applies:

  • you deduct the amounts, but do not send them to us
  • you deduct the amounts, but send them to us late

When the due date falls on a Saturday, a Sunday, or a public holiday recognized by the CRA, we consider your payment to be on time if we receive it on the next business day.

The penalty is:

  • 3% if the amount is one to three days late
  • 5% if it is four or five days late
  • 7% if it is six or seven days late
  • 10% if it is more than seven days late, or if no amount is remitted

Example

A remittance that was due in January of the current year (for deductions made in December of the previous year)
is considered late when paid with the previous year’s information return (T4, T4A) and this return is filed after
the remittance due date.

Generally, we only apply this penalty to the part of the amount you failed to remit that is more than $500. However, we will apply the penalty to the total amount if the failure was made knowingly or under circumstances of gross negligence.

In addition, if you are assessed this penalty more than once in a calendar year, we will apply a 20% penalty on the second or later failures if they were made knowingly or under circumstances of gross negligence.

Note

We will charge you a fee for any payment that your financial institution refuses to process. If your payment is late, we can also charge you a penalty and interest on any amount you owe.

To find out what your due date is, see Summary of remittance due dates.

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