Aug 28, 2025 1 min read

Canada - CRA: Q4-2025 prescribed interest rates for late/overpaid payroll remittances announced

On Aug 21, 2025, the Canada Revenue Agency (CRA) published the prescribed interest rates for Oct 1–Dec 31, 2025. Overdue remittances (including payroll source deductions such as CPP, EI, and income tax) will accrue interest at 7%; overpayments earn 3% for corporate taxpayers and 5% for non-corporate taxpayers. These rates also apply to other federal taxes and charges listed by CRA.

Effective Date

Published

Impact

  • Changes interest expense/credit on late or overpaid payroll remittances for Q4-2025; affects penalty/interest modeling and cash forecasting.

Payroll action

Canada Revenue Agency (CRA)

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