Running payroll in Canada means more than simply cutting cheques. Every pay period, you become responsible for collecting deductions on behalf of your employees and forwarding them to the Canada Revenue Agency on time. Missing a deadline or miscalculating an amount can trigger penalties that add up quickly. This guide breaks down everything Calgary business owners need to know about CRA payroll remittances in 2025.
A payroll remittance is the total amount your business must send to the CRA after each pay period. It includes deductions you withheld from your employees' paycheques plus your own employer contributions. Specifically, every remittance package contains four components:
The employer's share is significant. You match your employees' CPP contributions dollar for dollar, and you pay EI premiums at 1.4 times the employee rate. This means the remittance you send to CRA will always be larger than the total deductions shown on your employees' pay stubs.
Getting the math right starts with knowing the current contribution rates. For 2025, the figures are as follows.
The CPP employee contribution rate is 5.95%, and the employer rate is also 5.95%. The maximum pensionable earnings for the year are $71,300, with a basic exemption of $3,500. This means the maximum annual CPP contribution per employee is $3,867.50 for both the employee and the employer.
Canada also maintains a second-tier enhancement called CPP2. An additional 4% applies to earnings between $71,300 and $81,900. The maximum CPP2 contribution is $429 per year for both the employee and the employer. You must track both tiers separately on your payroll records.
The 2025 EI employee premium rate is 1.64% on insurable earnings up to $65,700. Your employer rate is 2.296%, which is 1.4 times the employee rate. The maximum annual employee EI premium is $1,077.48, and your maximum employer premium per employee is $1,508.47.
The CRA assigns your remittance frequency based on your average monthly withholding amount (AMWA) from two calendar years prior. There are four categories, and each carries its own deadline.
New small employers whose average monthly withholding is under $3,000 per quarter may qualify to remit quarterly. Quarterly remittances are due on the 15th day of the month following each calendar quarter (April 15, July 15, October 15, and January 15). This category requires CRA pre-authorization — you cannot simply choose it yourself. The CRA will notify you if you are eligible.
Most small and mid-sized businesses in Calgary fall into this category. If your AMWA is under $25,000, you are a regular remitter. Your deadline is the 15th of the month following each pay period. For example, deductions from October payroll are due November 15.
If your AMWA is between $25,000 and $99,999, you remit twice a month on an accelerated schedule. Deductions from payroll paid between the 1st and 24th of the month are due on the 25th of that same month. Deductions from payroll paid between the 25th and the end of the month are due on the 10th of the following month.
Large employers with an AMWA of $100,000 or more must remit within three calendar days of each payment date. This effectively means remitting after every single payroll run, with almost no grace period. Businesses at this threshold should have payroll software or a dedicated payroll service in place to avoid costly errors.
You have three main options for sending your remittance to the CRA:
Regardless of method, always confirm your RP account number is correct. Payments applied to the wrong account are considered missed and will trigger penalties even if the funds were sent on time.
The CRA applies a graduated penalty structure based on how late your remittance arrives:
These penalties are charged on the amount that was late, not your total payroll. Interest also accrues daily on unpaid balances at the CRA's prescribed rate. A pattern of late remittances will attract closer CRA scrutiny of your entire payroll account.
Even experienced business owners run into the same recurring errors. Here are the most common ones to watch for:
Forgetting the employer's share of CPP. Many business owners calculate only the employee deductions when preparing a remittance, overlooking that they owe a matching CPP contribution. This is one of the most frequent causes of remittance shortfalls.
Calculating net pay instead of gross pay. CPP and EI are calculated on gross insurable or pensionable earnings, not the take-home amount. Using the wrong base produces an incorrect deduction that will show as an arrears balance on your payroll account.
Missing the exact remittance date. The 15th is not "around mid-month." If the deadline falls on a weekend or public holiday, it moves to the next business day — but this is the only exception. Build remittance dates into your calendar with at least a two-day lead, especially for online banking payments, which may require a day to process.
Confusing your RP and RC accounts. Sending a payroll remittance to your GST/HST or corporate tax account does not count. Each CRA program account is separate.
The team at Swift Accounting Calgary handles remittance calculations and submissions for businesses across Calgary, ensuring the correct amounts reach CRA on time every pay period.
The CRA will apply the overpayment as a credit to your payroll account. You can request a refund through My Business Account or leave it to offset a future remittance. Overpayments do not generate penalties, but you should still correct the underlying calculation error to avoid ongoing discrepancies.
If you ran no payroll in a given period and have nothing to remit, you are still expected to notify the CRA — either by filing a nil remittance through My Business Account or by contacting CRA directly. Failing to report can result in estimated assessments.
If a corporation pays salary or wages to a shareholder-employee, those amounts are treated the same as any other employment income. CPP, EI (if applicable), and income tax must be withheld and remitted. Dividends paid to shareholders are handled differently and are not subject to payroll deductions.
The CRA notifies employers of their assigned remittance frequency each year, typically by mail. You can also check your current category through My Business Account under your payroll program account. If you believe your category is incorrect, contact CRA directly — do not simply remit on a schedule that was not authorized for your account.
Payroll remittances are one of the most time-sensitive obligations a Calgary business faces. Between tracking multiple contribution rates, monitoring deadline categories, and reconciling remittances against payroll records, it is easy for errors to slip through — especially as your team grows. For support with payroll processing, tax planning, or broader bookkeeping needs, reach out to Swift Accounting today.
Contact Swift Accounting to discuss how we can take payroll remittances off your plate and keep your CRA account in good standing year-round.
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