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Penalties, interest, and other consequences

If you do not fulfill your obligations or comply with our payroll requirements, you may be assessed a penalty, interest, or incur other consequences.

If you fail to comply with the deducting, remitting, and reporting requirements, you may be prosecuted. You could be fined from $1,000 up to $25,000, or you could be fined and imprisoned for a term of up to 12 months.

If you disagree with an assessment or ruling, you may appeal it. You may also request a cancellation or a waiver of the penalties and interest, if you were prevented from fulfilling your obligations due to extraordinary circumstances.

Topics about Penalties, interest, and other consequences

Interest Failure to deduct
Late remitting / Failure to remit Failure to make a payment to a Canadian financial institution (Threshold 2 remitter)
Penalty for failure to file an information return by the due date Failure to complete the TD1
Failure to obtain your employee's social insurance number (SIN) Failure to file the Record of Employment (ROE)
Third-party civil penalties Failure to pay amounts deemed to be held in trust
Failure to maintain or provide adequate records Failure to honour a payment
Director's liability Cancelling or waiving penalties and interest
How do you appeal a payroll assessment or CPP/EI ruling? Penalties for non-residents
Date Modified: 2011-12-16

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