Late remittances can result in significant penalties. The CRA imposes a 3% penalty if the payment is one to three days late, 5% for four to five days, and 7% for six to seven days late. Payments more than seven days late incur a 10% penalty. Repeat late remittances within a calendar year may result in additional penalties.

Interest is also charged on unpaid amounts, compounding daily at a prescribed rate. Employers can avoid these penalties by using automated payroll systems to calculate and remit on time or by working with a payroll provider that guarantees compliance.