This article applies to Wave Payroll in Canada.
Paying payroll taxes to the government, known as payroll remittances, can get confusing. Not to worry, though, we're here to help!
When you registered your business with the CRA (see Getting your CRA Business Number), they sent you information about when to remit (your remittance frequency and type).
When are my remittances due?
Your remittances are due based on the type of remitter your business is, and your cheque date:
New or Regular (Monthly in Wave):
If you are a new employer, or your average monthly withholding amount (AMWA) two years ago was less than $25,000, you are a regular remitter.
- Remittance is due to the CRA before the 15th day of the month, after the month you paid employees/made the deductions.
- For example, if you paid your employees on January 2nd (cheque date/payday), ensure the CRA receives the related remittance on February 15th or earlier
- See more on being a New Remitter
Threshold 1 (Accelerated remitter):
You are Threshold 1 if your business's total average monthly withholding amount (AMWA) two years ago was in the range of $25,000 to $99,999.99.
- If your cheque date (payday) is before the 16th, your remittance is due by the 25th day of the same month. For example, if your employees are paid January 5th, the remittance is due by January 25th.
- If your cheque date is on the 16th or later, the remittance is due by the 10th day of the next month. For example, if your employees are paid January 17th, the remittance is due by February 10th.
- See more on being a Threshold 1 Accelerated Remitter.
Threshold 2 (also known as an Accelerated remitter):
You are Threshold 2 if your business's average monthly withholding amount (AMWA) two years ago was $100,000 or more.
- The CRA requires remittances up to four times a month
- 1st to 7th of the month; 8th to 14th of the month; 15th to 21st of the month; 22nd to the last day of the month
- See more on being a Threshold 2 Accelerated Remitter
If Wave handles my remittances, when are the amounts withdrawn from my account?
Wave withdraws the amount needed for remittances at the same time as employee wages. The money is held until it is due to the CRA (based on the remitter type you entered in Wave). For more information on direct deposit funding, check out paying your employees.
See more on setting up Wave to remit payroll taxes to the CRA on your behalf.
Can I handle my own remittances? Does that change my remittance dates?
You can handle remittances yourself, outside of Wave, but this does not change when your remittances are due to the CRA.
From Payroll > Taxes, you will find the information needed to fill out your CRA Remittance Voucher.