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 works with two remitting periods each month:

• the 1st to the 15th, usually due on the 25th of the same month
• the 16th to the end of the month, usually due on the 10th of the next month

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 split the month into two remitting windows instead of waiting for one 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.