Payroll Process Changes in a Paperless World

CRA form PD7A, Statement of Account for Current Source Deductions, along with the accompanying worksheet is the latest CRA form to move to the electronic age.

Effective with the April 2013 Employee Tax Deduction Remittances, form PD7A will no longer be mailed to employers that have made their remittances electronically over the past 6 months.

CRA has long promoted the use of My Business Account and My Account for taxpayers and this latest move increases the need for employers, businesses and individuals to take advantage of the electronic offerings available through the Canada Revenue Agency website.

The move to go electronic comes with its own problems though. Since the Statement of Account for Current Source Deductions will no longer be mailed, employers may face the problem of not having the "reminder" in the bills to be paid.

In addition, in most cases, electronic payments through your financial institution requires the payment to be made one day in advance in order to be received by CRA by the payment due date.

Penalties for late remittance range from 3% on day 1 to 10 % on day 8. CRA also has the authority to increase penalties to 20% for habitual late filing and remittance.