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Tax Tip - Businesses: Pay your taxes online directly through your financial institution or directly to the CRA

Tuesday, October 19, 2021 2:15:00 PM

Business owners, the Canada Revenue Agency (CRA) understands that your time is valuable. We have online options to help you save time when paying your taxes.

Here's how you can pay your business taxes online through your financial institution or directly to the CRA.

Pay by online banking

You can pay your business taxes to the CRA through your financial institution's online banking app or website. Most financial institutions also let you set up a payment to be made on a future date.

How to pay your business taxes online:

• Sign in to your financial institution's online banking service for businesses.
• Under "Add a payee" look for an option such as:
• • • Federal – Corporation Tax Payments – TXINS
• • • Federal – GST/HST Payment – GST-P (GST-P)
• • • Federal Payroll Deductions – Regular/Quarterly – EMPTX – (PD7A)
• • • Federal Payroll Deductions – Threshold 1 – EMPTX – (PD7A)
• • • Federal Payroll Deductions – Threshold 2 – EMPTX – (PD7A)
• • • Federal – Canada emergency wage subsidy repayment
• • • Federal – Canada emergency rent subsidy repayment
• Enter your 15-digit business number as your CRA account number.
Make sure the number is accurate so that the CRA can apply your payment correctly.

Make sure to visit the Making payments for businesses web page for more information about paying taxes online for all types of businesses. This includes sole proprietorships, partnerships and corporations. You can find information on:

• Making a payment to the CRA, collections and transferring payments within your accounts.
• Remitting source deductions.
• Remitting (paying) the GST/HST (including installment payments).
• Corporation payments.

When you make a payment, your financial institution's online banking app or website will display the date your payment was made. It may take up to 5 business days for payments to be reflected in your CRA account. To avoid fees and interest, please make sure you pay on time.

Pay by My Payment

My Payment is an electronic service that lets you make payments directly to the CRA. You can use your Visa® Debit, Debit MasterCard®, or Interac® Online card from a participating financial institution. You cannot use credit cards with My Payment. You can access My Payment from My Business Account or the CRA BizApp. You can do this by clicking the 'Proceed to pay' button and then selecting the 'Visa ® Debit, Debit MasterCard ®, or Interac ® Online' option.

Ask your financial institution about your transaction limit and any fees they may charge for making online payments. The CRA does not charge a fee for using this service.

Payments are usually processed by the CRA within 1 to 3 business days. To avoid fees and interest, please make sure you pay on time.

For more information, check out the Pay now with My Payment web page.

Pay by pre-authorized debit

Pre-authorized debit (PAD) is a secure, online self-service payment option for businesses to pay their taxes. You set the payment amount and authorize the CRA to withdraw it from your Canadian chequing account on the date, or dates, you choose.

Your selected first payment date must be at least five business days from the date your PAD agreement is created. See federal holidays for a list of non-business days.

Businesses can use PAD through GST/HST NETFILE to pay a balance due.

To create a PAD agreement as a business, you have to register for My Business Account. Once signed in:

• Select the 'Proceed to pay' button. Then select the 'Schedule one or more payment(s) from a Canadian chequing account starting in 5 or more business days' option to create your PAD agreement.
• Select 'Manage pre-authorized debit' from the "Business balances and services" section. This will allow you to view, create, modify, cancel or skip a payment.
• You can also create a PAD agreement within the CRA BizApp. You can do this by selecting the 'Proceed to pay' button and the 'Pay later' option. Your credentials are the same as My Business Account.

Pay by credit or debit card, PayPal, or Interac e-Transfer

You can use a third-party service provider that offers payment by credit card, debit card, PayPal, or Interac e-Transfer. The third-party service provider will send your business payment and remittance details online to the CRA for you. Third-party service providers charge a fee for their services.

PaySimply and Plastiq are third-party service providers that you can use to make a payment:

PaySimply accepts debit cards, credit cards, and payment services. This includes Visa, Mastercard, Amex, Union Pay, PayPal, and Interac e-Transfer.
Plastiq accepts debit cards and all credit card brands. This includes Visa, Mastercard, and Amex.

You are responsible for making sure the CRA receives your payment by the payment due date. If you are using a third-party service provider, you must clearly understand the terms and conditions of the services you are using.

Please ensure that you set up your payment well in advance of your payment's due date. Payment delivery is not immediate, and is determined by the third-party service provider that is used.

Here's how you can confirm your payment was received by the CRA:

1. Confirm your payment in My Business Account

• Before checking if your payment has been processed, allow:
• • • 3 business days for online payments (including payments made by third-party service provider)
• • • 10 business days for payments by cheque or money order
• Then log in to My Business Account to view your payment details under "View and pay account balance".

2. Resolve an issue with a payment

• If your payment was not applied to your account as expected, you can:
• • • use My Business Account or Represent a Client to transfer payments between your various accounts
• • • call 1-800-959-5525
• To verify your identity, you will need to provide additional information, such as details from an assessed tax return.

Other ways to make a payment

If these online payment options don't work for you, don't worry. You have several other payment options depending on the type of payment you want to make. Visit our Make a payment for a business web page to find the best option for your situation.

Stay connected

- Follow the CRA on Facebook
- Follow the CRA on Twitter – @CanRevAgency
- Follow the CRA on LinkedIn
- Subscribe to a CRA electronic mailing list
- Add our RSS feeds to your feed reader
- You can also watch our tax-related videos on YouTube

SOURCE: Canada Revenue Agency