Payroll Remittance Guide for Alberta Employers

If you employ staff in Calgary, you have a legal obligation to deduct income tax, CPP contributions, and EI premiums from their pay — and remit those amounts to CRA along with your employer portions. Payroll compliance is one of the areas CRA scrutinises most heavily, and the penalties for errors or late remittances are steep.

What You Must Deduct

For each pay period, you must calculate and withhold:

• Federal and provincial income tax — based on the employee's TD1 form and pay amount.
• Canada Pension Plan (CPP) — both the employee's share and a matching employer contribution.
• Employment Insurance (EI) — the employee's share plus the employer's portion (1.4 times the employee amount).

Remittance Frequencies

CRA assigns your remittance frequency based on your average monthly withholding amount (AMWA):

• Regular remitter (AMWA under $25,000) — remit by the 15th of the month following the pay period.
• Accelerated remitter (threshold 1) (AMWA $25,000–$99,999) — remit twice monthly.
• Accelerated remitter (threshold 2) (AMWA over $100,000) — remit within three business days of each pay run.

New employers typically start as regular remitters.

Penalties for Late Remittance

CRA's penalties escalate with repeated offences:

• 3% if 1–3 days late
• 5% if 4–5 days late
• 7% if 6–7 days late
• 10% if more than 7 days late or if no remittance is made
• 20% for repeat offenders (second default in the same calendar year)

Unlike most CRA penalties, payroll remittance penalties can be assessed against directors personally.

Year-End Obligations

By February 28, you must file T4 information returns for all employees and provide T4 slips. If an employee leaves during the year, you must issue a Record of Employment (ROE) within five calendar days of the last day of work.

Let Castle Handle Your Payroll

Payroll is one of the highest-risk areas of business bookkeeping. Castle Bookkeeping's payroll service handles source deduction calculations, CRA remittances, T4 preparation, and ROE filing — so you stay compliant without the stress. Contact us for a free consultation.