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If you have a payroll account, then you should be aware of the payroll deductions. As an employer, you need to have the payroll remittance schedule prepared. The Canada Pension Plan (CPP), the Employment Insurance (EI) premiums and the income tax deducted from your employees’ salary should be remitted together with your CPP contributions and EI premiums. Let’s take a look at remitting payroll deductions in detail.
The remittances are deemed to be made on the day when it is received by the Receiver General. Therefore, as an employer it is critical to choose the right method of remittance that is suitable for you as per your due date. Your remittance form and deductions should be sent to the Canada Revenue Agency (CRA) on or before the remittance due date.
Steps to Running Your Payroll Account
You need to follow the six steps to run your payroll account. They are:
In case your remittance due date falls on a Saturday, Sunday or any public holiday recognized by the CRA, then you need to remit on the following working day. For new small businesses, you need to remit on a quarterly basis. To know more about the new remitter, get in touch with a professional accounting firm to help you in this matter.
For a regular or new remitter, you need to remit your deductions on or before the 15th day of the month after the month you have made the remittance. For a quarterly remitter, you need to remit your deductions on or before the 15th day of the month immediately following the end of the quarter. The quarters begin from January to March and vice-versa. There’s another form of remitter known as accelerated remitter for which the due date depends on a number of other factors.
All the information relating to your payroll accounts should be kept either at the place of your residence or at the place of your business. If you do not comply with the payroll remittance schedule, then you will have to face some hefty fines. As a small business organization, you would not want to face these penalties. To clear all your doubts relating to payroll deductions and complying with all the procedures of payroll account, it is recommended that you consult a specialist bookkeeping firm in Edmonton.