Threshold 1 Accelerated Remitter

A Threshold 1 accelerated remitter is an employer in the lower accelerated CRA remitter category, which means payroll deductions usually have to be remitted more often than under a regular monthly schedule.

In plain language, this is the faster remittance category that sits between regular remitter status and the even faster Threshold 2 accelerated schedule.

Why Threshold 1 Accelerated Remitter Matters

Threshold 1 accelerated remitter status matters because it changes the employer’s payroll operations after each run.

It helps explain:

• why some employers remit source deductions twice a month instead of on a regular monthly schedule
• why payroll controls and cash timing can tighten as an employer grows
• why remitter type is an employer administration issue, not an employee pay-stub issue

How It Works In Canada

Under current CRA guidance, Threshold 1 accelerated remitters are existing employers whose average monthly withholding amount from two calendar years earlier falls into the lower accelerated band rather than the regular or Threshold 2 band. In practice, that means payroll usually has to track remittance periods within the month and make sure each completed payroll run is matched to the right due date.

That makes Threshold 1 accelerated status closely connected to:

• remitter type
• remittance due dates
• payroll remittance workflow
• payroll program account administration

Example

An employer grows beyond the regular-remitter level and is classified by the CRA as a Threshold 1 accelerated remitter. Employees may still receive normal pay stubs, but the payroll team now has to remit source deductions on the tighter Threshold 1 cycle rather than waiting for a regular monthly due date.

Common Misunderstandings

• Threshold 1 accelerated remitter does not change employee deduction formulas. It changes employer remittance timing.
• Threshold 1 accelerated remitter is not the same as Threshold 2. It is a separate accelerated category with a different remittance rhythm.
• Threshold 1 accelerated remitter is not a pay-stub term. Employees usually do not see it directly.

Related Terms

• Accelerated Remitter
• Threshold 2 Accelerated Remitter
• Remitter Type
• Regular Remitter
• Remittance Due Date
• Payroll Remittance
• Payroll Program Account
• PD7A

Knowledge Check

1. Is Threshold 1 accelerated remitter status faster than a regular remitter schedule? Yes.
2. Is Threshold 1 the same category as Threshold 2 accelerated remitter? No.
3. Does Threshold 1 status mainly affect employer remittance timing rather than employee pay-stub lines? Yes.

Caveat

The current AMWA thresholds and due-date rules belong to live CRA guidance. This page explains the payroll meaning of the Threshold 1 category, not a substitute for the current remittance table.