Before you remit

Before you can remit your source deductions, you will need to prepare certain information. Follow the remitting checklist below. This page also discusses remitter types.

Remitting checklist

In order to make a remittance you will need:

For information about remittance vouchers, including how to complete them, go to Understanding statements of account and remittance vouchers.

Summary of remitter types

Your remitter type sets your remitting frequency and affects your due dates. It is normally based on your average monthly withholding amount (AMWA) from two calendar years ago.

Table of remitter types based on average monthly withholding amount (AMWA)
Remitter type Average monthly withholding amount (AMWA)
Quarterly remitters – new small employers Not based on AMWA. The monthly withholding amount is zero to $999.99 and you have a perfect compliance history.
Quarterly remitters - account opened for 12 months or longer From zero to $2,999.99, and you have a perfect compliance history.
Regular remitters From zero to $24,999.99
Threshold 1 accelerated remitters

From $25,000.00 to $99,999.99

Threshold 2 accelerated remitters $100,000.00 or more

General information about remitter types

  • The CRA will tell you your remitter type by mail or by electronic statement when you register, and when it changes. You can also view your remitter type on My Business Account or Represent a Client.
  • If your organization has more than one payroll program (RP) account, your remitter type will be the same for all accounts.
  • If you are an associated corporation, your remitter type is the same as that of all your associated corporations.

Remitter types explained

There are three main remitter types: Quarterly remitters, Regular remitters, Accelerated remitters.

Remitter types are not pay periods

Your remitter type is not related to your pay periods. If your remitter type changes, you do not have to start paying your employees more often because you have to remit on different due dates. Go to Summary of remittance due dates for a table of remitting periods and due dates.

Quarterly remitters

New small employers

If you are a new small employer, you may be able to remit quarterly instead of monthly. You do not have to apply. Remit quarterly unless the CRA tells you, on your statement of account, that you have to remit at a different frequency.

To qualify, you must meet the both of the following conditions:

  • each month, your monthly withholding amount (MWA) must be less than $1,000; and
  • you must maintain a perfect compliance history on all your GST/HST (RT) and payroll (RP) program accounts.

Your MWA is the amount you would have to remit for a month if you were a regular remitter. If you are an associated corporation, the combined MWA of your corporation and your associated corporations must be less than $1,000.

You have a perfect compliance history if, over a 12-month period, you:

  • remit all your source deductions on time;
  • file all your T4 type information returns on time;
  • have paid all your goods and services tax/harmonized sales tax (GST/HST) on time; and
  • have filed all your GST/HST returns on time.

Small employers

You may have the option to remit quarterly if your payroll program (RP) account has been opened for 12 months or longer. If you are a new employer, see New small employer.

To qualify, you need:

You have a perfect compliance history if, over the last 12 months, you have:

If you qualify, the CRA will tell you in writing in November, following an annual review. If you continue to qualify, the CRA will not tell you again.

Regular remitters

You are a regular remitter if:

Accelerated remitters

There are two groups of accelerated remitters: threshold 1 and threshold 2.

If you had more than one payroll program account two calendar years ago, or if you are an associated corporation, see What decides my remitter type? for important information.

Threshold 1 accelerated remitters

You are a threshold 1 accelerated remitter if you had an average monthly withholding amount (AMWA) of $25,000 to $99,999.99 two calendar years ago.

Threshold 2 accelerated remitters

You are a threshold 2 accelerated remitter if you had an average monthly withholding amount (AMWA) of $100,000 or more two calendar years ago.

The Average monthly withholding amount (AMWA) decides your remitter type

Generally, the CRA bases your remitter type on your average monthly withholding amount (AMWA), from two calendar years ago. If you are a new employer, read about the monthly withholding amount instead. Each year, the CRA reviews your AMWA. If your remitter type changes, it will let you know in writing.

If applicable, the CRA will also look at your compliance history to see if you qualify as a quarterly remitter.

Your AMWA is the total of all the Canada Pension Plan (CPP), employment insurance (EI), and income tax you had to remit for the year, divided by the number of months (maximum 12) that you had to remit for.

If you had more than one payroll program (RP) account two calendar years ago, or if you are an associated corporation, the CRA will calculate your AMWA as though you had one combined account.

Example 1 - Regular corporation

In 2015, Company A had to remit $1,050,000 over 10 months. It is not an associated corporation. Company A’s AMWA is calculated as follows: $1,050,000 ÷ 10 = $105,000.

Since its AMWA was over $99,999.99 in 2015, Company A will be a threshold 2 accelerated remitter for 2017.

Example 2 - Associated corporations

Companies X and Y are associated corporations. In 2015, their combined source deductions remittances were $297,000. Each corporation had to remit for January through November. Since months are counted only once, their AMWA is calculated as follows: $297,000 ÷ 11 = $27,000.

Since their combined AMWA was between $25,000.00 and $99,999.99 in 2015, each company will be a threshold 1 accelerated remitter for 2017.

Can I ask the CRA to review my remitter type?

You can request a review of your remitter type if:

  • you are a regular remitter, and:
    • you have had your account for 12 months or more; and
    • you meet the conditions to be a quarterly remitter.

or

  • you are an accelerated remitter, and using last year’s AMWA would lower your remitting frequency.

If one of these situations applies to you, you can call 1-800-959-5525. The CRA will review your account, and confirm your remitter type and frequency in writing.

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