We solve serious CRA tax problems

CRA Employer Payroll Remittance & Deductions

Photo of Sam Faris

When a business has employees, the law requires the employer to withhold and remit to the Canada Revenue Agency (“CRA”) certain amounts from gross pay. At first, you have to register for a payroll program account with the CRA. You have to register if you pay salaries or wages, pay tips or gratuities, pay bonuses or vacation pay, or provide benefits or allowances to employees.

The employer is responsible for properly classifying employees as separate from independent contractors, and withholding the right amounts. Businesses often try to call persons who would be employees under the heading of independent contractor to save money. The classification is a matter of law and a question of fact. Often this attempt to save on payroll remittance taxes comes back to haunt employers, sometimes forcing them into bankruptcy. The classification of employer and employee can be tricky, but a tax professional will be able to help you make the right decision.

Employers must make deductions from employee pay. Most employees (there are a few exceptions for some deductions) have Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and income tax deducted, withheld, and remitted.) These amounts can be calculated using the CRA’s online payroll remittance deductions calculator. Note that there are other payroll taxes that may apply, such as worker’s compensation premiums, but these are not part of the amount deducted and remitted to the CRA. An employee can ask you to withhold less income tax, because of their personal circumstances, by filling out Form TD1 “Personal Tax Credits Return”. This allows them to have access to more of their pay during the year rather than have to wait for a refund after the end of the year.

Depending on the number of employees you have and, therefore the amount you remit monthly, you can be either a new small employer remitter, a regular remitter, or one of two categories of accelerated remitters. A regular remitter is a new employer that has monthly average monthly remittance amounts of more than $1,000 and less than $25,000, or a remitter that has been remitting for more than 12 months has had an average monthly remittance of $3,000 or more. As a regular remitter, you have to remit the amounts to the cra online payroll on the 15th day of the month after you pay or give employees their remuneration.

The amounts that are required to be withheld are considered to be held in trust for the government and can be collected by the cra payroll deductions immediately. The failure to withhold and remit payroll taxes is a common reason a business may get in trouble with the tax man. In a corporation, directors can be personally liable for the failure of the corporation to withhold and remit required amounts. Always seek out a tax professional so you know what your payroll obligations are.

ACCA-Logo
AICPA-Logo
Chartered professional accountant logo
Chartered Professional Accountant in Canada, U.S. and U.K.

Testimonial

Sam Faris reduced the significant unreported income based on net worth audit to be nil. Sam’s approach in fighting these types of complex audits is unique and sophisticated. He found countless mistakes made by the auditor which were rectified when Sam appealed the audit decision. Instead of owing significant amount of taxes, Sam reduced it to zero. I highly recommend to hire Sam for this type of audits and any CRA problem.”

E.M., Ottawa
pro-tip

Pro Tip

ACCESSING THE SMALL BUSINESS DEDUCTION IN YOUR BUSINESS

The Small Business Deduction gives businesses a tax deduction on the first $500,000 of income. This saves an eligible corporation around up to $50,000 in income taxes. There are a number of conditions that have to be met to be eligible for this deduction.

Sam and his team helped me to file my multiple outstanding personal and corporate tax returns. He was able to save me from legal action by the CRA, saved me taxes and CRA waived the penalties for me. I highly recommend his services for any tax help and CRA audit needs.
Response from the owner:Ms. Rivera Your 5 stars Google review is very much appreciated. I am glad that we met your expectations and you are happy with our work quality and the outcome achieved. We are specialized in filling multiple years of outstanding personal and corporate tax returns. We have helped many clients for more than 15 years to file all their outstanding tax returns in the most efficient way. We were able to get them out of troubles with the CRA, save them taxes, waiving penalties and get them interest relief. We take a pride of what we do and our team is fully dedicated and experienced to deal with any type of dispute with the CRA. We are at your disposal anytime you need us in the future. Sam Faris
Faris CPA took care of my tax audit case by the CRA. The team performed the work on timely basis and in the most efficient way possible. End results are beyond expectations. Hire Faris CPA and they will do the required work with reasonable fee.
Response from the owner:Many thanks Andrea for your positive review and I am glad that you are happy with our services. Our firm is specialized in all kind of tax disputes with the CRA including tax audits. All our staff are CPAs who have many years of experience in fighting the CRA. Thanks again and please feel free to reach out to us in the future if needed. Sam Faris
I found Sam online and I decided to have a consultation with him to discuss my CRA audit. I got a very good feeling about him, his integrity and his tax knowledge and skills and I had no doubts that he would be the best fit to provide audit help and support. I decided to hire him to handle my case. His approach to my case was consistent to the advice that he gave me at the conclusion. Sam was able to prepare working papers and supporting documents to show the auditor why his numbers are overstated. Sam had to involve the team leader and insisted to meet with him as the auditor refused to adjust his numbers. Sam confidently presented his work to the team leader and the team leader accepted his numbers without any adjustments. Sam deserves 10 stars for all what he has done in my CRA audit case and all his support and help.
Response from the owner:Thank you for the 5 stars review and your kind words. I am glad that we met your expectations. Please feel free to reach out to us if you require further help in the future.
Thank you Sam for your guidance and walking me through the implication of being taxed in Canada as a US resident. You help is very helpful and informative.
Response from the owner:It’s was my pleasure Mr. Makhoul. Thank you for giving me the opportunity to explain your matter and we look forward to further help you in the future.
I am very grateful to Mr. Faris and his team. I appreciate their expertise, support and professionalism in my most difficult time in life fighting the CRA. They were always made me feel that I am in a good hands and the results that they got very impressive. If you have any problem with the CRA, hire Faris CPA as they are top notch tax firm.
Response from the owner:Thank you Michael for the positive review. We always make sure to pay attention to details and to provide the best service with top quality work to perfectly defend clients with the CRA. Our work is based on many years of experience in helping clients with all different types of audits. Our firm consists of CPAs who have many years of experience in dealing with CRA audits. We are confident with our work and confident that we can provide second to none service. Thanks again Sam Faris
I recently had a consultation with Mr. Faris regarding a CRA audit. He was very knowledgeable. He helped me to get a fair understanding of my situation and reduced my stress level by suggesting a very good approach to address the audit and how to eliminate unfavorable audit results.
Response from the owner:Mr. Singh Thank you for the positive review and your kind words. I am glad that I met your expectations and provided answers to all your questions. We are a firm who is fully dedicated to solve all kind of problems with the CRA. Please feel free to contact us if you need further help in the future. Thanks Sam Faris
I had the pleasure of working with Sam during a CRA audit, and I can confidently say he is an expert in his field. His deep understanding of tax laws and CRA procedures was immediately clear. Sam is incredibly thorough—he reviewed all my documents with precision, identified areas that needed attention, and ensured everything was in perfect order before submission.

What really stood out was his strategic thinking. Sam didn’t just react to CRA inquiries—he anticipated them, prepared strong responses, and communicated with the CRA on my behalf in a professional and effective manner. His ability to break down complex tax language into something I could actually understand was a huge relief.

Beyond his technical skills, Sam is patient, calm under pressure, and genuinely dedicated to helping his clients. I never felt rushed or overwhelmed—he made a stressful experience feel completely manageable. If you need help with a CRA audit or any tax-related issue, Sam is the person you want in your corner. Highly recommended!
Response from the owner:Husna Thank you so much for the positive review. We appreciate your kind words and your review is very rewarding for our hard work. As you experienced with us, we are specialized in tax disputes with the CRA and we have been providing services for many years now. We have dealt with all different types of audits and we know how the CRA works and what is needed to defend our clients and to achieve good results to our clients satisfaction. Regards, Sam Faris
I was referred to Sam Faris by a family member as I needed tax help from a professional and tax expert. I met in person with Sam and explained the tax audit that I am having. Sam reviewed all the documents that I have and reviewed my tax history and figured what triggered the red flag by the CRA. It was the wrong filling by my previous accountant. Based on Sam’s experience with similar cases, he determined the best approach to fight the CRA audit. I trusted his advice and I decided to hire his services. As expected, Sam kept his promises and worked aggressively on my file based on the approach that he determined when I first met him. Long story short, the results that he achieved for me were very sufficient. I had to pay a very minimal tax bill compared to what the CRA proposed at the beginning. My life is back to normal now and CRA is not part of it anymore. I can’t thank Sam enough for the great work that he has done for me.
Response from the owner:Ms. McLean Thank you for the 5 stars review. We are glad that we met your expectations and glad that the CRA audit and the CRA are off your shoulders now and your life back to be a stress free. We always keep our promises to our clients. We are transparent and deliver what we promise. Your case as other cases, needed a strong and creative strategy to dispute the CRA proposal. We implemented a unique approach which could not be challenged by the CRA. Results speak for themselves. Best regard Sam Faris
Sam Faris was very helpful in providing the approach for my corporate audit with the CRA. His approach saved me time, money and of course emotion in dealing with the CRA. The work was performed on timely basis and with the budget so there were no surprises.
Response from the owner:Petros Thank you for the positive review. We are known in what we do and the quality of work we provide during the CRA audit. Providing a perfectly reconciled accounts which are backed up with supporting documents was very important in your tax audit with the CRA. You were part of the success as well for responding on timely basis and providing all what we need with no issue. Thanks you again Sam Faris