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What a payroll remittance means
When employees are paid, some money is withheld from their gross earnings for government authorities. That withholding is generally a liability until it is remitted. Employer portions add other amounts owed. Cashflow tracks the accounting and remittance work; paying or filing with the authority remains your responsibility.
1. Start from the finalized payroll
Confirm the deductions and employer contributions in each finalized run. Use the payroll journal and year-to-date workpapers to find what the business owes for the chosen period. Consider any prior remittances or adjustments.
2. Check your remitter frequency
Don't assume every business remits on the same day. CRA remittance deadlines depend on your remitter type and circumstances, and Quebec may require separate provincial remittances. Consult the applicable official guidance before choosing the due date.
3. Record the remittance
Use the Business payroll remittance tracking workflow to identify the period, amount and payment status. Compare the payment with the bank transaction (and PD7A/authority statement where applicable) before marking it matched. The remittance should reduce the liability rather than create a second payroll expense.
4. Understand a small example
If payroll workpapers show $1,250 owed and the authority payment is $1,250, the remittance should reduce that specific liability by $1,250 once. If the bank payment differs, investigate the period, employer portions, late fees or prior adjustments rather than forcing a match.
5. Reconcile and keep records
Compare remittance history, bank payments, payroll liability accounts and official statements. Save supporting records for your accountant and review any carryforward balance.
See CRA: remit source deductions and payroll year-end records.
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