If you have a small business with employees, you are likely required to remit your payroll deductions monthly or quarterly.
Did you know that an early payment can be considered by CRA as late?!
A monthly payroll remittance is due by the 15th day of the following month. Similarly, quarterly remittances are due on the 15th day of the month that follows each quarter.
We’ve seen several instances recently where a client has made a March payment, for instance, before the end of March. Instead of applying the payment to the period ending March 31 that was due April 15, CRA has applied it to the period ending February 28 that was due March 15 and is now late.
To avoid misallocations that need to be corrected and late-filing penalties and interest, we recommend making your monthly payment between the 1st and 15th of the following month. For example, your March payment should be made between April 1 and 15th.
Need help with payroll remittances or other bookkeeping services? Visit the link on this page to learn more about our services and to request a quote.
