RRSP deadline urgency ahead of March 31
With Canada’s financial year‑end approaching, sources urged high‑earners to review tax tasks before March 31—confirm advance tax payments, organize grant/vesting paperwork, and consider RRSP contribution timing to offset income spikes reported. The filing window is driving concrete admin moves for tech workers who had equity events this year.
Official CRA deadline to make RRSP contributions for the 2025 tax year is March 2, 2026, according to the Canada Revenue Agency. (canada.ca) The RRSP dollar limit for 2025 is $32,490 (18% of prior-year earned income) and the RRSP dollar limit for 2026 is $33,810, per CRA published limits. (canada.ca) Restricted Stock Units (RSUs) are generally taxed as employment income on the vesting date with the fair market value included on the employee’s T4, creating a taxable employment benefit at vesting. (resourcehub.bakermckenzie.com) Employers commonly satisfy withholding via “sell‑to‑cover” or payroll remittance but that payroll withholding often does not equal an employee’s marginal tax rate, so vesting-related withholding can leave a balance owing at tax time. (nicolawealth.com) If net tax owing exceeds $3,000 for the current or previous year, the CRA requires quarterly instalment payments (due March 15, June 15, Sept. 15 and Dec. 15); missed or underpaid instalments trigger interest and potential penalties. (canada.ca) Payroll and tax-administration steps being taken by tech employees this season include confirming RRSP deduction limits via CRA My Account or Form T1028, verifying how RSU vesting will be reported on the T4, and choosing a CRA instalment-calculation option (prior‑year or current‑year) before making last‑minute moves. (canada.ca)
