Late remittances can result in significant penalties. The CRA imposes a 3{200200be0dbfb79f39a6c3f98dd6a23037fc4bff5d2f5296e7656cd1a461cab3} penalty if the payment is one to three days late, 5{200200be0dbfb79f39a6c3f98dd6a23037fc4bff5d2f5296e7656cd1a461cab3} for four to five days, and 7{200200be0dbfb79f39a6c3f98dd6a23037fc4bff5d2f5296e7656cd1a461cab3} for six to seven days late. Payments more than seven days late incur a 10{200200be0dbfb79f39a6c3f98dd6a23037fc4bff5d2f5296e7656cd1a461cab3} 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.