In: Finance
The organizations’ Controller has received a notice from the Canada Revenue Agency (CRA) advising that the organization will be changing from an Accelerated threshold 1 remitter to an Accelerated threshold 2 remitter effective with the first pay of the new year. The Controller has asked you to provide an explanation of why this change has occurred. In addition, she wants to understand how this will impact the statutory remittance schedule. Using the Current Year calendar in the course material, provide specifics of when the remittances are due for the January and February bi-weekly payrolls starting with the first pay date of the new year which is Friday January 5th.
The main reason for the advice by CRA is that the employee’s pay frequency of Accelerated threshold 2 remitter is based on bi-weekly not semi-monthly. The remittances are due three business days after the end of each weekly period as follow:
1st to 7th of the month
8th to 14th of the month
15th to 21st of the month
22nd to the end of the month
The statutory deductions withheld with the cheque/deposit dated January 5th with the employer’s portions of CPP contributions and EI premiums are due to CRA by Jan 11th, three business days after the end of the weekly period, Jan 8th (If Jan 9th,10thand 11th are not Saturday, Sunday or a statutory/bank holiday).
The statutory deductions withheld form the cheque/deposit dated Jan 19th with the employer’s portion of CPP contributions and EI premiums are due to the CRA by Jan 25th, three business days after the end of the weekly period, Jan 22nd (If Jan 23, 24 and 25 are not Saturday Sunday or a statutory holiday).
The statutory deductions withheld form the cheque/deposit dated Feb 2nd with the employer’s portion of CPP contributions and EI premiums are due to the CRA by Feb 8th , three business days after the end of the weekly period, Feb 5 ( If Feb 6, 7 and 8 are not Saturday Sunday or a statutory holiday).
The statutory deductions withheld form the cheque/deposit dated Jan 16th from the employer’s portion of CPP contributions and EI premiums are due to the CRA by Feb 22nd,three business days after the end of the weekly period, Feb 19 (If Feb 20,21 and 22 are not Saturday Sunday or a statutory holiday).