The moment you hire your first employee in British Columbia, you take on a set of obligations that go well beyond writing a paycheque. You become responsible for withholding taxes, contributing to government programs, and remitting those amounts to the Canada Revenue Agency on time, every time.
For many small business owners, CRA remittances are one of the most confusing aspects of running a business. This guide breaks it all down in plain language so you know exactly what you owe, when it is due, and how to avoid costly penalties.
What Are CRA Remittances?
CRA remittances are the payroll deductions you withhold from your employees' pay, combined with your employer contributions, that you send to the Canada Revenue Agency. Think of yourself as a collection agent for the government — you collect these amounts on every pay cycle and forward them to the CRA according to your assigned schedule.
What You Remit
Every payroll remittance includes three components:
Canada Pension Plan (CPP) Contributions
Both the employer and employee contribute to CPP. For 2026, the employee contribution rate is 5.95% on pensionable earnings between $3,500 and the yearly maximum pensionable earnings (YMPE). As the employer, you match the employee's contribution dollar for dollar.
Employment Insurance (EI) Premiums
Employees pay EI premiums on insurable earnings up to the annual maximum. For 2026, the employee rate is 1.64% of insurable earnings. As the employer, your share is 1.4 times the employee's premium.
Income Tax Withholdings
You must withhold federal and provincial income tax from each employee's pay based on their TD1 form and the CRA's payroll deductions tables.
When to Remit
| Remitter Type | Average Monthly Withholdings | Due Date |
|---|---|---|
| Quarterly | Under $1,000 (qualifying new small employer) | 15th of the month after the quarter ends |
| Regular | Under $25,000 | 15th of the month following the pay period |
| Threshold 1 Accelerated | $25,000 - $99,999.99 | 25th for paydates in the 1st-15th; 10th for paydates in the 16th-end of month |
| Threshold 2 Accelerated | $100,000+ | Within 3 business days of each pay date |
WorkSafeBC Premiums
If you have workers in British Columbia, you almost certainly need WorkSafeBC coverage. WorkSafeBC premiums are separate from CRA remittances — they go to WorkSafeBC, not the CRA. Premiums are calculated based on your industry classification rate multiplied by your assessable payroll.
BC Employer Health Tax
The BC Employer Health Tax (EHT) applies to employers with total BC remuneration exceeding $1,000,000 in a calendar year. Employers below this threshold are fully exempt.
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Book a Free CallDisclaimer: This guide is for informational purposes only and does not constitute professional tax or legal advice. Consult a CPA or tax professional for guidance specific to your situation.