Late remittances trigger penalties starting at 3% for 1-3 days late, increasing to 10% for more than 7 days late or if no payment is made. The CRA applies these penalties directly to the unpaid amount.
The CRA’s penalty structure is explicitly defined in its remittance guidelines: "The penalty is: 3% if the amount is 1 to 3 days late, 5% if it is 4 or 5 days late, 7% if it is 6 or 7 days late, 10% if it is more than 7 days late, or if no amount is remitted." For example, if you miss the due date by 10 days, you’ll owe 10% of the unpaid source deductions as a penalty. Interest also applies daily on unpaid amounts from the due date, compounded daily. You must remit by the due date—such as the 15th for monthly remitters or the 25th for accelerated remitters—and confirm payment dates through your financial institution to avoid late penalties.