Late payroll remittances: what the CRA charges
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The penalty runs from 3% to 10% of the amount, depending on how many days late, and applies only to the part over CAD 500.
What a late remittance costs
- 3% if the amount is 1 to 3 days late.
- 5% if it is 4 or 5 days late.
- 7% if it is 6 or 7 days late.
- 10% if it is more than 7 days late, or if nothing is remitted.
Generally, the penalty applies to the part of the late amount that is over CAD 500. It applies to the whole amount when the failure was made knowingly or through gross negligence. The CRA charges 20% instead when it is the second or later time in a calendar year that this penalty is assessed and the failures were made knowingly or through gross negligence. Interest on the unpaid amount is separate, and the CRA’s pages set it out. A remittance counts as made on the day the CRA receives it.
A fictional example: CAD 3,500 of deductions remitted 5 days late. The penalty applies to the part over CAD 500, which is CAD 3,000, at 5%, so CAD 150. The figures are invented.
Which due date applies
When you must remit depends on the size of your payroll, and the CRA assigns the remitter type. Its page on when to remit lists the due dates for each type, and the payroll guide explains the filings that go with them.
What to do when you missed one
- Remit the amount now. The percentage steps up with the days late, so each further day can move it into a higher band.
- Check the amount against the payroll register before you pay, so the figure is the right one.
- Look at your remitter type. A late remittance sometimes means the due dates are not the ones you assumed.
If you had a reason
The CRA can cancel or waive penalties and interest in some circumstances beyond your control, such as illness, a disaster or financial hardship. You apply on Form RC4288, with supporting documents, and the CRA decides each request.
What is the penalty for a late payroll remittance?
3% for 1 to 3 days late, 5% for 4 or 5 days, 7% for 6 or 7 days, and 10% for more than 7 days or if nothing is remitted, on the part of the amount over CAD 500.
Does the CAD 500 come off the amount?
Yes. The penalty applies only to the part of the late amount that is over CAD 500.
When does a late remittance count as paid?
On the day the CRA receives it.
Can the penalty be cancelled?
In some circumstances beyond your control, yes. You apply on Form RC4288 and the CRA decides.
Payroll basics for BC employers →
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