Before you remit
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In order to make a remittance you will need:
- your Canada Revenue Agency (CRA) payroll program (RP) account number;
If you do not have one, go to Opening a payroll program account.
- which payday(s) you are remitting for;
- your remitting period end date;
- your gross payroll in the remitting period;
- the number of employees you paid on your last payday in the remitting period;
- your remitter type and remitting frequency;
- your remittance due date; and
- a suitable remitting method.
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.
|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
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.
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:
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:
- an average monthly withholding amount (AMWA) of less than $3,000 either one or two calendar years ago; and
- a perfect compliance history.
You have a perfect compliance history if, over the last 12 months, you have:
- remitted all your source deductions on time;
- paid all your goods and services tax/harmonized sales tax (GST/HST) on time; and
- filed all your T4 type information returns and GST/HST returns on time.
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.
You are a regular remitter if:
There are two groups of accelerated remitters: threshold 1 and threshold 2.
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.
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.
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.
- 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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