Annie Chong, manager of Carswell’s payroll consulting group, fields questions from readers
ANSWER: The following table sets out the 2010 remitting schedule for threshold two remitters. While the best efforts have been made to ensure this table is accurate, in some jurisdictions remittance due dates may vary because of civic holidays. The holidays used for this table come from s. 35(1) of the Federal Interpretation Act, which defines a holiday as including: Sundays, New Year's Day, Good Friday, Easter Monday, Christmas Day, Victoria Day, Canada Day, Labour Day, Remembrance Day and Thanksgiving, as well as any day proclaimed or appointed by federal, provincial or civic authorities as a holiday.
Payment date Remittance due date
Dec. 22-31 Wed. Jan. 5
Jan. 1-7 Wed. Jan. 12
Jan. 8-14 Wed. Jan. 19
Jan. 15-21 Wed. Jan. 26
Jan. 22-31 Thurs. Feb. 3
Feb. 1-7 Thurs. Feb. 10
Feb. 8-14 Thurs. Feb. 17
Feb. 15-21 Thurs. Feb. 24
Feb. 22-28 Thurs. Mar. 3
Mar. 1-7 Thurs. Mar. 10
Mar. 8-14 Thurs. Mar. 17
Mar. 15-21 Thurs. Mar. 24
Mar. 22-31 Tues. Apr. 5
Apr. 1-7 Tues. Apr. 12
Apr. 8-14 Tues. Apr. 19
Apr. 15-21 Thurs. Apr. 28 (Good Friday: Apr. 22; Easter Monday: Apr. 25)
Apr. 22-30 Wed. May 4
May 1-7 Wed. May 11
May 8-14 Wed. May 18
May 15-21 Thurs. May 26 (Victoria Day: May 23)
May 22-31 Fri. June 3
June 1-7 Fri. June 10
June 8-14 Fri. June 17
June 15-21 Fri. June 24 (June 29 in Quebec, National Holiday in Quebec: June 24)
June 22-30 Wed. July 6 (Canada Day: July 1)
July 1-7 Tues. July 12
July 8-14 Tues. July 19
July 15-21 Tues. July 26
July 22-31 Wed. Aug. 3 (Aug. 4 in jurisdictions where the first Monday in August is a holiday)
Aug. 1-7 Wed. Aug. 10
Aug. 8-14 Wed. Aug. 17
Aug. 15-21 Wed. Aug. 24
Aug. 22-31 Tues. Sept. 6 (Labour Day: Sept. 5)
Sept. 1-7 Mon. Sept. 12
Sept. 8-14 Mon. Sept. 19
Sept. 22-30 Wed. Oct. 5
Oct. 1-7 Thurs. Oct. 13 (Thanksgiving: Oct. 10)
Oct. 8-14 Wed. Oct. 19
Oct. 15-21 Wed. Oct. 26
Oct. 22-31 Thurs. Nov. 3
Nov. 1-7 Thurs. Nov. 10
Nov. 8-14 Thurs. Nov. 17
Nov. 15-21 Thurs. Nov. 24
Nov. 22-30 Mon. Dec. 5
Dec. 1-7 Mon. Dec. 12
Dec. 8-14 Mon. Dec. 19
Dec. 15-21 Tues. Dec. 27 (Boxing Day: Dec. 26)
Dec. 22-31 Wed. Jan. 4 (Thurs. Jan 5 in Quebec. Bank holiday in Quebec: Jan. 2)
Remittance reminders
•For 2011, threshold two remitters are employers whose average monthly withholding in the 2009 calendar year was $50,000 or more.
•Under the Income Tax Act, employers have the option of changing their remitting frequency based on their average monthly withholding amount in the previous year (2010 for 2011 remittances). If you wish to take advantage of this option, contact any Canada Revenue Agency tax services office or tax centre.
•Amounts threshold two remitters deduct or withhold from remuneration paid any time during the month are due three working days (not counting Saturdays, Sundays or holidays) from the last day in the following periods: first to seventh, eight to 14th, 15th to 21st and the 22nd to the end of the month.
•If you use a service bureau or similar institution to remit your deductions, it is still your responsibility to make sure the institution withholds your deductions and remits them on time.
Reporting severance payments
QUESTION: We are paying out severance pay to some departing employees. Where do we report the payments at year end?
ANSWER: Beginning with 2010 year end reporting, employers must report severance pay in the “Other Information” area on a T4. This is a change from previous years, where employers reported severance pay on a T4A. Severance pay qualifies as a retiring allowance.
The Canada Revenue Agency has moved the reporting requirements for retiring allowances from the T4A to the T4 to reduce the year end filing burden for employers, many of whom filed a T4A only to report retiring allowances.
Since severance pay qualifies as a retiring allowance, some or all of the payment may be transferred tax free to a registered pension plan or registered retirement savings plan.
On the T4, employers must use the following codes (as applicable) in the “Other Information” area to report severance pay :
•66 (portion of a retiring allowance eligible for tax-free rollover to an RPP or RRSP);
•67 (non-eligible retiring allowance);
•68 (eligible retiring allowances for Status Indians with tax-exempt income); and
•69 (non-eligible retiring allowances for Status Indians with tax-exempt income).
Do not include the amount of the severance payment in box (14) on the T4.
For year end reporting for years prior to 2010 (including amendments and returns filed late), report the amount of severance pay on the T4A form.
Annie Chong is manager of the payroll consulting group at Carswell, a Thomson Reuters business, which publishes the Canadian Payroll Manual and operates the Carswell Payroll Hotline. She can be reached at [email protected] or (416) 298-5085.
