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Payroll Remittance

Source-Deductions-and-Remittances

Employer payment of source deductions and related employer amounts to the CRA after payroll creates the liability.

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Payroll Remittance

Payroll remittance is the employer’s act of sending payroll amounts owed to the CRA after a payroll run creates those obligations.

In Canadian payroll, remittance is the follow-up step that turns payroll liabilities into actual outgoing payments. It can include source deductions taken from employees and related employer amounts such as employer CPP and EI contributions. It is not the same thing as paying employees their net pay.

Why Payroll Remittance Matters

Payroll remittance matters because it affects:

  • whether the employer clears payroll obligations on time
  • how source deductions move from the paycheque to the CRA
  • employer compliance and recordkeeping
  • the difference between payroll calculation and payroll follow-through

It is one of the clearest examples of how payroll continues after employees have already been paid.

How It Works In Canada

After payroll calculates the run, the employer has payroll amounts that need follow-up. Payroll remittance is the step where the employer sends the required amounts through the CRA remittance process.

That process depends on:

  • the source deductions created in the run or remitting period
  • the related employer contributions that also have to be paid
  • the employer’s payroll program account
  • the employer’s remitter type and due dates
Workflow pointWhat happensWhy the distinction matters
Payroll runPayroll calculates earnings, deductions, and employer amountsCreates the liability but does not clear it with the CRA
Pay dateEmployees receive net payEmployee payment can happen before remittance is due
Payroll remittanceEmployer sends required amounts to the CRAClears payroll amounts owed under the remittance rules
Remittance due dateEmployer’s deadline depends on remitter typeControls when the remittance must actually be made

Example

Employees receive their pay for the period, but the payroll cycle is not operationally finished. The employer still needs to remit the income tax, CPP, and EI amounts withheld, along with the related employer CPP and EI amounts, through the CRA process. That follow-up payment is payroll remittance.

Common Misunderstandings

  • Payroll remittance is not net pay. Net pay goes to employees.
  • Payroll remittance is not source deductions alone. It often also includes related employer CPP and EI amounts.
  • Payroll remittance is not the same as payroll run. The run creates the amounts; remittance follows.

Knowledge Check

  1. Does payroll remittance happen after the payroll run creates obligations? Yes.
  2. Is payroll remittance the same as paying employees their net pay? No.
  3. Does remitter type matter to payroll remittance timing? Yes.

Caveat

Exact remittance content and due dates vary by employer situation, remitter type, and regional context, especially where Quebec payroll programs are also involved. The important idea is that remittance is the employer-side follow-up payment process, not the employee paycheque itself.

Revised on Friday, April 24, 2026
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