Whether you need to pay GST/HST, payroll remittances, personal or corporate tax, there are many ways you can submit a payment to the Canada Revenue Agency (CRA). In order to avoid interest charges and penalties, your payment needs to be received by the due date. Paying online is the most efficient way to make sure your payment is recorded immediately. You have to consider the time it takes mail to arrive and processing time if you pay at your bank or send via mail – make sure you are giving yourself enough time.
Here are the different payment options the above remittances can be paid (and we’re starting with online banking seeing as we think it is the easiest and most efficient!):
Most financial institutions in Canada allow you to make payments online, you process your payment the same way you would when paying a credit card or utility bill. Once you’re signed on to online banking, you select “Pay Bills” and add CRA to your list of payees. You’ll then choose the appropriate options such as “Federal – Corporation Tax Payments – TXINS” “Federal – GST/HST Payment – GST-P (GST-P)” or “Federal Payroll Deductions – Regular/Quarterly – EMPTX – (PD7A)”. If you are paying tax owing and are not paying the full amount due, the next payment you make should be paid under “past tax owed”. You’ll need to enter your business number (or SIN) and choose if you are setting up a one-time or recurring payment.
Debit Card — Interac Online:
My Payment is a service found on the CRA’s website, it’s an electronic payment service that uses Interac Online. Businesses and individuals can make payments directly to the CRA from an online personal or business banking account. You can use My Payment if your interac bank card does not have a Visa logo. Once you enter your payment info and completed the transaction you will be given a confirmation receipt – always print or save this.
You can find more information on the CRA website with regards to paying online with a debit card, as well as a complete list of all financial institutions that are eligible to make such payments.
Pre-Authorized Debit (PAD):
PAD is another way for businesses and individuals to pay the CRA through online banking. It is a secure, self-service option that allows you to set an amount to pay, as well as choose a payment date, or multiple dates if needed – this option can only be set up online.
Be aware that the CRA has a five-business-day delay in creating and managing PAD Agreements, the same delay applies when updating or cancelling any payments. Check the CRA website for a full list of payments types that can be made using pre-authorize debits.
You cannot pay the CRA directly with a credit card; You can however, use a third-party service provider such as Plastiq to make these payments. It is important to note that this option has a service fee of 2.5% on each payment, while there is no fee if you are paying with Visa debit cards.
In Person at your Financial Institution:
You can make a payment in person at any Canadian financial institution. It is important to note that you will need the original remittance voucher to have your payment processed – photo copies of remittance vouchers or payment slips are not accepted. If you do not have the voucher, you can request it from CRA by phoning 1-800-959-5525.
Cheques need to be made payable to “Receiver General”. In the memo line if your cheque note the business number of the company, or the social insurance number of the individual, it is also a good idea to make note of what period you are paying.
Lastly, you can still mail a cheque to the CRA. Your cheque should be made payable to “Receiver General” and you’ll need to add the business number (or SIN) in the memo line of the cheque as well as the period the payment is covering. It is a good idea to include the remittance voucher if you have it. Make sure your payment is received on time – allow time for mail and 2-3 business days for processing.
Learn more about LedgersOnline’s Accounting Services for Small Businesses:
Contact us for more information on our Small Business Accounting Services, and how our team can streamline your financial processes to give you more time to grow your business.