• by admin
• February 1, 2021

Do you know everything you can pay to CRA through your online banking? Isn’t it convenient as sitting in your office or on your couch? It’s not only a convenient but also secure way to do it.

 

You need to make a payment before the due date to ensure CRA receives your GST payment, income tax payment, and payroll remittance on or before the due date to avoid any interest and penalty.

The most common CRA payment or tax payment due dates are:

1. GST monthly filing – GST payment, and filing is due by the end of the following month from the end of the month
2. GST quarterly filing – GST payment, and filing is due by the end of the following month from the end of the quarter
3. GST annual filing – GST payment, and filing is due by the end of the three months from the end of the year
4. GST filing self-employed – GST payment is due by April 15th, and filing is due by June 15th
5. Personal income tax resident of Canada – CRA payment is due by April 30th
6. Personal income tax non-resident of Canada – CRA payment is due by April 30th
7. Corporate income tax – CRA payment is due by the end of the three months from the end of the corporate tax year
8. Monthly payroll remittance – CRA payment is due by the 15th of the following month

CRA considers the payment has been made on the day when it has been received by CRA. If the CRA payment due date is a Saturday, Sunday, or a public holiday, CRA also considers the payment has been made if the CRA payment is received on the next business day. The above most common CRA payment dues dates are applicable for regular tax payments. You may have obligation to your taxes in installments and the due dates of your installments may be different. You may please contact your accountant to provide you with the due dates of your installment payments for different program accounts with CRA.

If you owe a CRA payment that has not been paid on time, CRA charges you interest on the amount owing on a monthly basis. If you are unable to pay the full amount owing due to certain reasons you can call CRA to make a payment arrangement.

 

Do you know that you can make CRA payments online from your online bank account as you pay your regular bills?

STEPS

1. Log in to your personal bank account if are paying your Personal Income Tax. You cannot pay your GST/HST or CRA Payroll remittances from your personal bank account.
2. Log in to your business bank account if you are paying GST/HST or CRA Payroll remittances or Corporate Income tax, ctc.
3. Try to find the link for tax payment on the left-hand navigation pane. If you cannot find this then call your bank.
4. For example, if you are with TD bank, click on pay bills and find the link “Tax Payment and Filing“, if you are with CIBC bank this appears like “Pay & File Taxes“, if you are with Scotiabank, click on the bill payment tab and below that “Pay business taxes“, if you with any other banks, you can try to find similar links or call your bank.
5. If you are making the payment for the first time, then you first need to register the payee (CRA). Register a separate CRA payee for each program account. Please see below the CRA payee lists and register the one which is applicable to you.

 

CRA PAYEE list for different program account and tax payment

 

CRA payroll remittance

1. For regular payroll remittance, search for “Federal – Payroll deductions – Monthly/Quarterly – EMPTX – (PD7A)” and register this payee with your business number with the extension “RP0001“.
2. For payroll remittance arrears, “Federal – Payroll deductions – Arrears – EMPTX – (PD7D)” and register with your business number and extension “RP0001″.

After your register the above CRA payee, to make a payment please keep the following information available with you, Pay period end date, Gross payroll amount, Number of employees, and the total amount of remittance.

 

CRA GST payment

1. Payee for GST/HST Return and Payment – GST34 and register with your business number and extension“RT0001”.
2. Payee for GST/HST Balance Due – GST-B and register with your business number and extension“RT0001”.
3. Payee for GST/HST Payment only – GST-P and register with your business number and extension“RT0001”.

After your register the above CRA payee, to make a payment please keep the following information available with you, your GST/HST filing period end date and the amount owing.

2. You can also pay directly to CRA, please follow the link below.

https://www.canada.ca/en/revenue-agency/services/e-services/payment-save-time-pay-online.html?utm_campaign=not-applicable&utm_medium=vanity-url&utm_source=canada-ca_cra-my-payment

 

CRA Income tax payment

A. Corporation

1. Payee for Corporate income tax payment, “Federal – Corporation Tax Payments – TXINS” and register with your business number and extension“RC0001”.
2. Payee for Corporate income tax balance due, “Federal – Corporation Tax Balance Due – TXBAL – (RC177” and register with your business number and extension“RC0001”.

After your register the above CRA payee, to make a payment please keep the following information available with you, your income tax year-end date and the amount owing or balance due.

 

B. Personal – Canadian Income Tax

1. Payee for personal income tax installment payment, “Personal Tax Installment – TXINS” and register with your SIN.
2. Payee for personal income tax payment on filing, “CRA (REVENUE – 2020 TAX RETURN)” and register with your SIN.
3. Payee for personal income tax owing, “CRA (REVENUE) TAX AMNT OWING” and register with your SIN.

After your register the above CRA payee, to make a payment please keep the following information available with you, your income tax year-end date and the amount owing or balance due.

 

C. Non-Resident Withholding Tax

1. Payee for Non-resident Withholding Tax Part XIII – NRWHT and register with your SIN or Non-Resident account number.

 

– You will need a business bank account for GST/HST, Payroll remittance, and Corporate tax payments.

– You can pay your personal taxes from your personal bank account.

 

There are several ways that you can use to make CRA payments, GST payments, payroll remittance payments, income tax payments, and tax installment payment. Generally, you can use the following methods to make CRA payments.

• Pay online – through your online banking as explained above, through “My Payment” on CRA website using your Visa, Master, and Debit Card, through Pre-authorized debit
• Third party services provider – this method is very useful for Non-residents or if you do not have a bank account in Canada
• Pay in person – at your bank Brach of Canada at a Canada post outlet
• Pay by cheque

No matter which method you use, CRA has to receive your tax payment on or before the due date to avoid any late payment penalty and interest. We feel paying online is the most convenient way for CRA payment as you can pay at your convenience once the correct CRA payee is set up in your online banking system. You have the history payment available in your online banking records. This is also a secured method of payment rather than using writing the cheques and mailing them out.

 

RKB Accounting has expertise in cross-border taxation and has been providing accounting and taxation services for the last fifteen years in Canada and USA. RKB services include incorporating a business on both sides of the border, bookkeeping, sales tax, payroll, and corporate and personal income tax. RKB’s expertise includes cross-border tax planning, long-term tax planning, helping business start-ups, business structure planning, and resolving complex tax matters. RKB a CPA(Delaware), CA(India), and CIA(USA) has over 25 years of experience in accounting and taxation in dealing with various countries in the world.

Disclaimer: Information in the blog/post/article has been presented for a broad and simple understanding. This is not legal advice. RKB Accounting & Tax Services does not accept any liability for its application in any real situations. You need to contact your accountant or us for further information.