CRA Source Deductions Remittance and PD7A
Understand how and when to remit CPP, EI, and income-tax amounts to the CRA: remitter types, due dates, PD7A statements, payment methods, and late-remittance consequences.
Last updated August 2026
At a glance
- Source deductions are amounts withheld from employees, including CPP, EI, and income tax. The employer adds its own CPP and EI contributions to the remittance.
- The CRA assigns each employer a remitter type that determines whether remittances are due quarterly, monthly, twice monthly, or after four short periods each month.
- PD7A is a CRA statement of account that may include a remittance voucher. It is not a form that replaces the employer's payroll records.
- Remittance due dates depend on the remitter type and when remuneration was paid. The CRA must receive the payment on time.
- Reconcile remittance totals to payroll that was actually paid and remains valid after any voids, reversals, or corrections.
What is source deduction remittance?
When an employer withholds CPP, EI, and income tax from employees' paycheques, those amounts are held in trust for the CRA. The employer must remit these amounts — along with the employer's own CPP and EI contributions — to the CRA on a regular schedule. This process is called "source deduction remittance" or simply "remittance."
For payroll outside Quebec, a simplified remittance total is:
Quebec payroll also involves QPP, QPIP, and provincial income-tax remittances to Revenu Québec.
Remitter types
The CRA generally determines an existing employer's remitter type using the average monthly withholding amount (AMWA) from two calendar years earlier. New-employer and quarterly-remitter rules also consider monthly withholding amounts and compliance history. The remitter type determines the remittance frequency:
| Remitter type | Average monthly withholding | Remittance frequency |
|---|---|---|
| Quarterly | New employers generally need monthly withholding below $1,000; existing employers generally need AMWA below $3,000. The CRA's account-age and perfect-compliance conditions also apply. | Due April 15, July 15, October 15, and January 15 for the preceding calendar quarter |
| Regular (monthly) | AMWA below $25,000, unless another type applies | Due by the 15th of the month following the month in which remuneration was paid |
| Threshold 1 (accelerated) | AMWA from $25,000 to $99,999.99 | Amounts paid from the 1st to 15th are due by the 25th; amounts paid from the 16th to month-end are due by the 10th of the next month |
| Threshold 2 (accelerated) | AMWA of $100,000 or more | Due within 3 working days after the end of each period: 1–7, 8–14, 15–21, and 22–month-end |
The CRA reviews payroll accounts and notifies employers of their assigned type. Confirm the current type in CRA correspondence or My Business Account instead of inferring it only from this year's payroll totals.
Remittance due dates explained
Common misunderstanding: due dates are based on pay date, not pay period
One of the most common payroll mistakes is calculating remittance due dates based on the pay period ending date instead of the pay date — the actual date the employee receives their payment. The CRA uses the pay date for all remitter types:
- If the pay period ends January 15 but the employee is paid on January 20, the pay date is January 20. For a regular remitter, those deductions count toward January, not the pay period's month.
- Threshold 1 uses two payment periods each month. Threshold 2 uses four payment periods: days 1–7, 8–14, 15–21, and 22 through month-end.
Always use the pay date — the date on the employee's paycheque or direct deposit — to determine which remittance period the deductions fall into.
Quarterly remitters
Quarterly status is available only when the CRA's withholding and compliance conditions are met. The due dates are:
- April 15 — for January through March
- July 15 — for April through June
- October 15 — for July through September
- January 15 — for October through December
Regular (monthly) remitters
The most common type. Deductions from pay dates in any month must be received by the CRA by the 15th of the following month. For example, deductions from pay dates in January must reach the CRA by February 15.
Threshold 1 (twice-monthly)
Deductions are split into two periods per month, based on the pay date:
- Pay dates from the 1st to the 15th of the month: due by the 25th of the same month.
- Pay dates from the 16th to the end of the month: due by the 10th of the following month.
Threshold 2 (four remitting periods)
Amounts paid during days 1–7, 8–14, 15–21, and 22 through month-end must be received by the CRA no later than the third working day after the end of the applicable period. Threshold 2 remitters must use an eligible electronic method or remit through a Canadian financial institution as required by the CRA.
PD7A statements and remittance vouchers
The CRA issues payroll account statements such as the PD7A, Statement of Account for Current Source Deductions. Depending on the account and delivery method, the correspondence may include a remittance voucher with the payroll account number and remitting-period information. The exact fields vary by statement or voucher type, so employers should use the current CRA-issued document rather than a reconstructed layout.
Electronic payments generally do not require mailing a paper voucher. Enter the correct 15-character payroll program account and remitting period through the selected payment method, then retain the confirmation and reconcile it to the CRA account.
PD7A statement of account
The CRA statement can show account activity, balances, and assessed interest or penalties. Review it against payment confirmations and payroll records. A PD7A-style PDF generated by Beanflow is an internal payroll report; it is not a CRA-issued statement, a payment voucher, or proof that the CRA received a remittance.
How to remit
Electronic payment
The preferred method. Pay through CRA My Business Account, online banking (for businesses), or via a payroll software that supports direct remittance. Electronic payments are processed faster and reduce the risk of missing deadlines.
Financial institution
Present a current CRA remittance voucher at a participating Canadian financial institution and use a payment method the institution accepts. Retain the stamped voucher or transaction receipt and confirm the payment appears on the CRA account.
Mail (cheque)
When a mailed cheque is an available method, follow the current CRA mailing and voucher instructions and allow enough delivery time. Payroll remittances are generally considered made on the day the CRA receives them, not the mailing or postmark date.
Late remittance: penalties and interest
Failing to remit on time is one of the most common and costly payroll compliance errors. The CRA generally applies the late-remittance penalty when the amount is over $500. For an amount of $500 or less, the penalty applies when the failure was knowing or involved gross negligence. The graduated rates are:
- 3% when the amount is 1 to 3 days late.
- 5% when it is 4 or 5 days late.
- 7% when it is 6 or 7 days late.
- 10% when it is more than 7 days late or no amount is remitted.
- 20% on a second or later assessed failure in the same calendar year when the failure was knowing or involved gross negligence.
The CRA also charges daily compound interest. Penalty application can depend on the amount and circumstances, so review the assessment and current CRA guidance rather than assuming a single flat penalty applies.