- A Requirement to Pay (RTP) is a formal, written demand the CRA sends directly to a third party — often an employer — who owes money to someone with an outstanding tax debt.
- The practical result for you as the employer is the same either way: once the notice is valid and in effect, you're legally required to comply with it.
- Check the notice against your employee's file — name, SIN if provided, and the details of the demand — and don't hesitate to call the CRA contact named on the notice if anything looks off.
If a CRA Requirement to Pay lands on your desk naming one of your employees, you're being asked to do something an ordinary creditor could never ask of you: redirect part of that employee's pay to the government, without a court order, without a hearing, and without the employee's consent.
For an employer who has never seen one before, the notice can be confusing — is it optional, does the employee need to sign off, what happens if you get it wrong? This article walks through what the notice actually requires of you as the employer, separate from the employee's own options for dealing with the underlying tax debt.
What a Requirement to Pay Is
A Requirement to Pay (RTP) is a formal, written demand the CRA sends directly to a third party — often an employer — who owes money to someone with an outstanding tax debt. For an employee's wages, that means the CRA is telling you, the employer, to pay a specified portion of what you'd otherwise pay your employee directly to the CRA instead.
The CRA has statutory authority to issue an RTP on its own, without first going to court. That's what makes it different from most wage garnishments most employers have encountered.
How It's Different From a Court-Ordered Garnishment
| Court-ordered garnishment | CRA Requirement to Pay | |
|---|---|---|
| Who issues it | A court, after a creditor sues and gets judgment | The CRA directly, under its own statutory authority |
| Court process required first | Yes | No |
| Employee's opportunity to contest before it takes effect | Through the litigation itself | Not through the RTP — disputes about the underlying tax debt run through a separate CRA and Tax Court process |
| Employer's obligation once received | Comply with the court order | Comply with the CRA's notice |
The practical result for you as the employer is the same either way: once the notice is valid and in effect, you're legally required to comply with it.
What You Must Do When One Arrives
- Confirm it's genuine and current. Check the notice against your employee's file — name, SIN if provided, and the details of the demand — and don't hesitate to call the CRA contact named on the notice if anything looks off.
- Follow the notice's instructions on amount and timing exactly. The RTP itself specifies what you're required to redirect and for how long; don't estimate or improvise if any part of it is unclear — contact the CRA officer named on the notice.
- Keep the redirected amount separate and remit it to the CRA as instructed, alongside — not blended with — your regular payroll remittances.
- Document everything. Keep a copy of the notice, your calculations, and confirmation of each payment made under it.
- Continue normal payroll for the rest of the employee's pay. An RTP affects the specified portion only; it doesn't change your other payroll obligations for that employee.
What to Tell (and Not Tell) the Employee
You're not required to keep the RTP secret, and in practice the employee will typically notice a smaller paycheque regardless. It's reasonable to let the employee know a Requirement to Pay has been received and that you're legally obligated to comply, while being clear that questions about the underlying tax debt — why it exists, how to dispute it, or how to arrange payment — need to go to the CRA or the employee's own advisor, not to you. You're not in a position to negotiate the debt on the employee's behalf, and shouldn't try to.
What Happens If You Don't Comply
Ignoring a valid RTP isn't a neutral choice. An employer that receives a valid Requirement to Pay and pays the employee in full anyway, instead of redirecting the specified amount to the CRA, can become personally liable to the CRA for the amount that should have been withheld and remitted. This is a real, direct exposure to your business — not just a technical breach.
If you genuinely believe the RTP was sent in error — the wrong person, the wrong amount, or without proper notice — raise that with the CRA officer named on the notice promptly and in writing, rather than simply not complying.
Frequently asked questions
Does the employee need to sign anything before I comply with the RTP?
No. The CRA's authority to issue the notice doesn't depend on the employee's consent, and you're obligated to comply once the notice is valid and in effect.
Can I just tell the CRA I can't afford to lose the administrative time and ignore it?
No. Compliance isn't optional based on convenience, and non-compliance exposes your business to liability for the amount you should have redirected.
What if the employee disputes owing the money at all?
That dispute runs through the CRA's objection and appeal process, separate from your obligation to comply with the RTP in the meantime. Direct the employee to raise it with the CRA or their own advisor.
Is a Requirement to Pay the same as wage garnishment for child support or a civil judgment?
No — those come from a court or a support enforcement program under different rules. A CRA Requirement to Pay is a distinct federal tax collection tool issued directly by the CRA.
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