How and when to pay (remit) source deductions – Overview
When you pay remuneration, such as salary or wages, or give a taxable benefit to a recipient, you have to take source deductions from that amount. You then have to remit these deductions to the Canada Revenue Agency (CRA).
What source deductions do you have to withhold and remit?
The source deductions you have to withhold and remit to the CRA may be any combination of:
- Canada Pension Plan (CPP) contributions
- employment insurance (EI) premiums
- federal, provincial, or territorial income tax
For example, if you are an employer and you pay a salary to an employee, you will generally have to deduct CPP, EI and income tax. If you are a pension plan administrator, you will have to deduct income tax but not CPP or EI.
Quebec-specific source deductions
If you have a place of business in Quebec, you may have to deduct Quebec Pension Plan contributions, and Quebec Parental Insurance Plan (QPIP) premiums and remit these to Revenu Québec. For more information, see Revenu Québec's Guide TP-1015.G-V, Guide for Employers: Source Deductions and Contributions.
Seasonal or no employees
You must still tell us if you have no source deductions to remit for a month or quarter.
What happens if you do not remit your source deductions?
If you do not remit your source deductions and employer shares of CPP and EI as and when required, the CRA can take actions against you. For more information, go to Failure to pay amounts deemed to be held in trust.
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