How to Remit CPP, EI, and Income Tax to the CRA: Payroll Account Employer Guide in Canada 🇨🇦

Every employer in Canada who deducts income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums from employee pay is required to remit those amounts to the Canada Revenue Agency (CRA) on a schedule tied to the size of the payroll. Getting the remittance right is not just about the amounts — it is about filing on time, using the correct channel, and knowing which remitter category applies.

Step 1: Register a Payroll Account with the CRA

Before making any remittances, the employer must have a payroll program account with the CRA, identified by the suffix RP (e.g., 123456789 RP 0001).

Online: Log in to My Business Account at canada.ca/my-cra-business-account and add a payroll account to an existing BN.

By phone: Call CRA Business Enquiries at 1-800-959-5525.

By mail: Complete Form RC1 (Request for a Business Number) and mail to your tax services office.

Step 2: Determine Your Remitter Category

Category	Average monthly withholding	Remittance deadline
New employer	Any (first year)	15th of the following month
Regular remitter	Under $25,000	15th of the following month
Accelerated Threshold 1	$25,000 to $99,999	25th of current month (days 1-15) and 10th of following month (days 16-end)
Accelerated Threshold 2	$100,000 or more	Within 3 business days of each pay date

The CRA notifies employers of their category but it is the employer's responsibility to monitor and update frequency when the AMW crosses a threshold.

Step 3: Calculate the Remittance Amount

Each remittance covers three components:

Income tax withheld: Use the CRA's Payroll Deductions Online Calculator (PDOC) or T4032 tables based on each employee's TD1 claims, pay frequency, and gross pay.

CPP contributions:

Employee CPP1: 5.95% of pensionable earnings above the basic exemption (prorated per pay period)
Employer CPP1: 5.95% — matching the employee deduction
Employee CPP2: 4% of earnings between the YMPE ($71,300) and YAMPE ($81,900)
Employer CPP2: 4% — matching the employee CPP2 deduction

EI premiums:

Employee EI: 1.64% of insurable earnings up to $65,700 for 2026
Employer EI: Employee premium x 1.4

The total remittance is the sum of all employee income tax withheld, all employee CPP and EI deductions, and all employer CPP and EI contributions.

Step 4: Remit to the CRA

Option A: My Business Account (recommended)

Log in to My Business Account at canada.ca/my-cra-business-account.
Select your payroll program account (RP suffix).
Under "Make a payment," select "Payroll source deductions."
Enter the remittance period and total amount.
Choose your payment method: pre-authorized debit, online banking, or credit card.
Submit. The CRA confirms the payment and timestamps it against your account.

Option B: Online banking

Most Canadian financial institutions support CRA payroll remittances as a bill payment. The payee is typically listed as "CRA Payroll (PD7A)." Use your 15-digit payroll account number as the reference.

Option C: PD7A remittance form

For counter payments at a financial institution, use the pre-printed PD7A remittance slip issued by the CRA.

Accelerated Threshold 1 split remittance

First remittance: Covers days 1 to 15. Due by the 25th of the same month.
Second remittance: Covers days 16 to end of month. Due by the 10th of the following month.

Step 5: Annual Reconciliation via T4 Summary

The T4 Summary (filed with T4 slips by the last day of February) declares total remuneration paid, total deductions, and total remittances for the year. Any difference between remittances made and the T4 Summary declaration is either a balance owing or a refund.

Common Mistakes

Cadana's global payroll tax engine automates remittance scheduling, threshold monitoring, and CPP2 bifurcation — but knowing where the failures occur is the starting point.

1. Not updating remitter category when payroll grows. Moving from Regular to Threshold 1 or Threshold 2 must happen proactively at the start of the new calendar year. Employers who miss the transition generate late-remittance penalties from January onwards.

2. Splitting CPP1 and CPP2 incorrectly. CPP2 applies only to earnings between the YMPE ($71,300) and YAMPE ($81,900). A single blended CPP rate creates T4 reconciliation issues.

3. Continuing to deduct EI after the annual ceiling. EI premiums stop at $65,700 in insurable earnings. Continuing beyond the ceiling requires a credit adjustment on the T4 Summary.

4. Using the wrong account number for online banking. Payroll remittances must go to the RP account, not the corporate income tax (RC) or GST/HST (RT) account. Misrouted payments generate late-payment penalties while sitting unallocated.

5. Missing the Accelerated Threshold 1 split deadline. Threshold 1 employers who remit a single monthly payment on the 15th are late on the first half-month remittance (due the 25th of the current month) every single month.

Penalties and Interest

Days late	Penalty
1 to 3 days	3% of amount due
4 to 5 days	5%
6 to 7 days	7%
8 or more days	10%
Second or subsequent failure in same year (8+ days)	20%
Interest on overdue amounts	9% per annum, compounded daily

How Cadana Supports Canadian Payroll Compliance

Calculating CPP1 and CPP2 contributions correctly, applying the right EI multiplier, monitoring AMW thresholds for remitter category changes, and routing remittances to the CRA on the correct schedule — Cadana's global payroll tax engine handles the full CRA remittance cycle at the API layer.

Book a demo at cadanapay.com/book-demo to see how it works in practice.

Sources and References

Canada Revenue Agency — Payroll deductions and remittances
CRA — My Business Account
CRA — CPP contribution rates and maximums 2026
CRA — EI premium rates and maximums 2026

Rates and thresholds current as of April 2026. Verify remitter category, CPP YMPE/YAMPE, and EI ceiling against CRA's annual publications before processing.