Making Business Tax Payments to CRA
Most online banking platforms have a Tax Payments module that will allow you to set up your business tax payments. Please note that most will need payments setup one day in advance of the due date. Please note that if the due date falls on a Saturday, Sunday or non-banking day then the payment is due on the following banking day.
Please note that personal income tax payments are usually handled as a Bill Payment (and not covered in this article)..
Setting up your online banking tax payments usually requires two steps: (1) Setup and (2) Payment.
IMPORTANT NOTE: Online corporate tax payments need to be set up the DAY BEFORE they are to be paid. If you wait until the due date they will be late. If you are paying on the due date consider using the payment option from within CRA My Business Account. You can pay by Visa/MC Debit or Interac Online - these usually post the same day. You can also schedule Pre-Authorized Debits from your bank account but these may have to be setup in advance.
Accessing your tax payments online banking
This is going to depend on your bank’s internet banking platform. Look for an option that says something like “Tax Payments.”
In TD Easyline it is found in the Pay Bill Section as “Tax Payment and Filing.”
You can also add it to My Links section on the left side of the screen by clicking “Choose my links” and add it as one of your links.
In BMO Online Banking (using your access card number) you will find it in the Payments & Transfers tab.
In BMO Online Banking for Business it’s in the Payments & Receivables section.
The “Tax & Bill Payments Administration” link lets you nominate your bank accounts to pay from. Everything else is done from the “Tax & Bill Payments” link. The Canadian flag will only display if you have USD accounts as well.
Setting up your tax payment profile
Once you are in the Tax Payments module you should see an option to “Add payment type.” You need to configure the payment types that you will be paying. You don’t have to do them all at once - the process is quick and easy. Here are the steps using the BMO Online Banking system:
Filter the payment types to make it easier to find what you are looking for.
Find the payment type, select it, and click next. Keep in mind that there are dozens of payment types and the one you want may be on the next page. Ensure that you have the right one. See below for examples.
- The details paid will depend on the tax type that you select (see below for details). At a minimum you will your tax account number, including the 9-digit business number, 2-character account code and the 4-digit account number (e.g., 123456789RC0001). You may also enter a nickname, which is useful when you have multiple entities that you are paying taxes for. Once you have entered the right details click Next.
- Verify the details on the confirmation page and click Done or Add another account
You can set up profiles for multiple business accounts - just ensure that you enter the correct business number and set a nickname.
Making your payment
When you are ready to make a payment you will log back into the Tax Payments system, select the payment from the list of available payments and click “Pay”. The options on the next page will depend on the payment type but you will typically need to know the reporting date (year end), payment amount, date you want to make the payment, and the payment type (if necessary).
Here are the most common Federal ones that you will need with details:
- Federal - Corporation Tax Payments -- TXINS
Use this one for all your corporate tax account payments. You will need to enter the month and day of your balance date (not the year) in the setup page. On the payment page you should specify the balance date (including year) that the payment belongs to and enter an amount in one or more of the following fields:
- Amount Owing - this is for arrears payments for prior filing years
- Interim - this is for installment payments for the current tax year
- Payment on Filing - this is for the balance due on last year’s return
- Federal - GST/HST Balance Due -- GST-B
This one is for GST/HST payments on filing or balance due. Do not post annual installments here (see GST-P). You’ll need to now the filing period that the payment relates to.
- Federal - GST/HST Payment only -- GST-P
Use this for installment payments or arrears payments. You’ll need to know the period end date that the payment relates to. Enter an amount into one of the following fields:
- Interim payment - only use if you are making a quarterly installment payment for an annual return
- Amount owing - for arrears or balances due on filing
- Federal - GST/HST Return and Payment -- GST34 -- (GST34)
This one allows you to actually file your GST/HST return and make payment at the same time (Fuel clients will not usually use this as we file your return directly and you just need to use the GST-P payment only form). You’ll need the full GST return line numbers as well as the GST reporting period. If you have zero rated or exempt income you should not use this form as it does not have all the necessary fields. File a full return on MyCRA Business and make a payment only.
- Federal Payroll Deductions - Payment on filing -- EMPOF -- (PD7R)
This is for balances due when you file your T4 slips or PD7R. You’ll need to enter the calendar year end date that the payment is for.
- Federal Payroll Deductions - Regular/Quarterly -- EMPTX -- (PD7A)
This is for your monthly or quarterly remittance payments. In addition to specifying the payment amount you will also need to fill in other relevant information as follows:
- Date payment made to employees - this is the month and year that the payroll payments were made (due 15th of the following month)
- Gross period payroll - this is the total taxable remuneration
- Number of employees in last period - as it says, number of employees you paid that month
- Amount paid - total of the taxes deducted from source, including Employees CPP and EI and Employers CPP and EI.