Gone are the days when we had to rely solely on the conventional way of filing our taxes. Those days, the only way was to send your taxes via mail to the CRA or go to the bank to pay in person.
Now, there are several ways to file your taxes; this includes an online form. Paying CRA is now an easy and swift process. You can pay using online banking or the My Payment option on CRA’s website.
The Canada Revenue Agency (CRA) is a government agency that collects taxes and administers tax laws for the Canadian government and several of Canada’s provinces and territories.
The Canada Revenue Agency also oversees various social and economic profit and incentive programs via the legal and international trade legislation.
CRA Online Payment
To simplify payment methods and ease taxpayers’ affairs, the CRA has an online payment service called My Payment. This service is available for individuals, including residents and non-residents and businesses. The online payment method allows taxpayers to make payments directly from their bank accounts to CRA.
Since the inception of this method, many financial institutions have integrated this process. Both individuals and businesses can make payments for various purposes.
Below are some of the items an individual (resident), non-residents, and companies can make a payment towards:
- Individual income tax
- Installment payment
- Payment on filing to pay the amount owing when filing a T1 person tax return
- Tax-free savings account (TFSA) contributions Child and family benefits payment
- Ontario credit Canada child tax benefits
- GST/HST credit Universal child care benefit
- Alberta family employment tax credit
Business owners can pay tax returns, installment payments, and any other payment they are owing. Some of them include:
- Goods and services tax
- Harmonized sales tax
- Excess duty tax
- Payroll source deductions
- Payroll remittance
- Air traveler’s security charge
- Insurance premium tax
- Nova Scotia Workers’ compensation
- Company corporate tax
- Information returns penalty
- Export charges
- Regular remittance
- Assessed arrears
- Tax penalty
- Law cost remittance
- Non-resident withholding tax
The CRA requires some payment details from you to authenticate and process your payment. Some of the information includes your CRA account number (SIN, BN, etc.). You are to enter these details in the CRA My Payment website.
The good thing is you don’t have to log in to “My Account” or “My Business Account” before you can process payment. Once your information is complete, you are transferred to the INTERAC® Online service, which then goes to your banking institution’s website.
Once you’ve completed this, you can then proceed to log in and confirm payment. You’ll be taken back to CRA’s My Payment website, where you’ll get a printable record of the transaction.
Note that the issuing bank might charge you a transaction fee, and the payment you made will be credited to your CRA account. Usually, it takes one or two business days for the payment to be updated on your CRA account.
How to Pay CRA Online for Individuals
Sign in to your issuing bank online banking service for individuals, proceed to “Add a payee,” and look for the following options;
- CRA (revenue) – current-year income tax return
Use this selection to create a payment for your current income tax return. You’ll be able to use this selection just once per return.
- CRA (revenue) – tax quantity owing
Use this selection to pay any quantity owing.
- CRA (revenue) – tax installment
Use this selection to create payments toward the long-run tax year.
- CRA (revenue) – Canada emergency profit reimbursement
Use this selection to repay a Canadian emergency response profit, Canadian emergency student profit, a Canadian recovery, Canada recovery sick benefit, or a Canada recovery caregiving profit.
You can then proceed to enter your 9-digit welfare number as your CRA account number. Ensure that all details you’re providing are correct so that the CRA will calculate your payment correctly.
How to Pay CRA Online for Businesses
Sign in to your financial institution’s online banking service for businesses. Under “Add a payee,” search for options like:
- Federal – Corporation Tax Payments – TXINS
- Federal – GST/HST Payment – GST-P (GST-P)
- Federal Payroll Deductions – Regular/Quarterly – EMPTX – (PD7A)
- Federal Payroll Deductions – Threshold one – EMPTX – (PD7A)
- Federal Payroll Deductions – Threshold two – EMPTX – (PD7A)
- Federal – Canada emergency wage grant compensation
Enter your 15-digit business number as your CRA account number. Make sure the amount is correct so that the CRA will apply for your payment.
How Long Does Payment Take?
When you create a payment, you can see the date your payment was made via your issuing bank’s online banking app or website. On average, it takes 3-5 days, excluding weekends, for the CRA to receive your payment. To avoid being charged a late fee and interest by the CRA, it is advisable to pay on time.
Besides your local bank’s online banking, there are also numerous financial platforms through which you can pay your CRA online. Some of them include:
- My payment – pay with a Visa Debit, Debit MasterCard, or Interac Online.
- Pay by Credit card, PayPal, or Interac e-Transfer Credit card, PayPal or Interac e-Transfer.
Top credit card companies like MasterCard and Visa allows one to make an online payment via a third party supplier like PaySimply. They Pay your CRA for you for a small fee.
- Third-party service suppliers
Here is a list of third-party service suppliers through which a CRA can be paid, but first, ensure that you set up your payment in advance of the due date. This is because payment delivery is not immediate and may vary per third-party service provider.
Third-party suppliers include; ADP, Canada Post, Ceridian, Humi, Motherclock, Nethris, PaymentEvolution, PaySimply, Payworks, Pivotal Solutions, Plastiq, Plooto, Rise, TelPay, Ultimate Software, Wave Payroll.
Paying Without a Canadian Bank Account
You can pay without a Canadian bank account by wire transfer or internationally issued MasterCard. Non-residents who don’t have a Canadian checking account can make their payments to the Canada Revenue Agency (CRA) by wire transfer or an internationally issued credit card through a third-party service supplier who charges a fee for their services.
To pay by wire transfer, ensure that all wire transfers are in Canadian dollars (CAD). In case your bank should charge you a fee for your wire transfer, make sure that they don’t deduct it from the payment you made to CRA as this might result in underpayment on your side.
For your wire transfer to be completed, you might have to give your CRA’s account details to your local bank as CRA only accepts SWIFT wire payments.
Wire space is restricted; ensure the following details are provided for your payment to be credited to the proper account:
- For individuals
Your non-resident account number or social welfare number add your full legal name, telephone number, tax year/year-end.
- For businesses
Your non-resident account number (business line): business name, period finish date, telephone number.
After you’ve sent your wire transfer, fax a duplicate of your tax remission voucher or GST/HST return/remittance to the CRA’s Revenue process Section. The fax detail is; Fax: 204-983-0924. You’ll need to provide the amount paid, the date paid, and the confirmation number if obtainable.
You can choose any of the third-party service suppliers listed below to link to their web site. The payment service every company offers is noted in brackets.
- Plastiq, this includes (source deductions, GST/HST, T2 corporation, excise tax, half XIII – non-resident income tax, T1 individual, and advantages and credits repayments)
- PaySimply, this includes (source deductions, GST/HST, T2 corporation, excise tax, excise duty, air travelers security charge, tax on insurance premiums, data returns, fuel charge, star Scotia Workers’ Compensation Board, half XIII – non-resident income tax, T1 individual, and advantages and credits repayments)
Avoiding Late Fees
You are accountable for ensuring the CRA receives your payment as at when due. If you’re employing a third-party service supplier, you need to understand the terms and conditions of the services you’re using. Ensure to commence your payment well beforehand of your payment’s maturity date as payment delivery isn’t immediate and is set by the third-party service issuer.