With advancing technology, the CRA has implemented many ways for a person to pay their corporate taxes (T2), HST, and/or payroll source deductions.
Often times, paying taxes involves obtaining a voucher. These are personalized vouchers for your corporation issued by the CRA. Vouchers can be requested by calling the CRA to request the vouchers (1-800-959-5525) or going to your “My Business Account” (http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/myccnt/menu-eng.html) online. The difficulty is that applying for “My Business Account” access can take many weeks due to the CRA’s enhanced security measures. We recommend pursuing this application since it will simplify the tax filing function of your business moving forward.
There are two common types of vouchers:
1) Form RC160 (Interim Payments Remittance Voucher) – First time filers should use this form for their first tax filing. This voucher is used when the CRA has not processed your return (i.e. your T2 has not been assessed by the CRA yet).
2) Form RC159 (Amount Owing Remittance Voucher) – Request this when there is an existing balance owing or if you expect a reassessment, this voucher is meant for reassessed amounts owing.
It is important to remember that you request vouchers for the specific account that you require: RC for corporate taxes, RT for HST and RP for payroll remittances.
Some common ways to pay your taxes are:
1. At your Canadian financial institution
An original copy of your personalized remittance voucher is required to pay at your bank.
2. Pre-authorized debit
You will need to go to “My Business Account” (see link above) and click “CRA register” to obtain your access code and login to pay. Note: there is a 5 day waiting period for security purposes between the CRA and the bank you are setting up this debit;
3. Online banking
Sign into your financial institution’s online banking service and look for the following options under “Add a payee.”
1) Federal – Corporation Tax Payments – TXINS
2) Federal – GST/HST Payment – GST-P (GST-P)
3) Federal Payroll Deductions – Regular/Quarterly – EMPTX – (PD7A)
4) Federal Payroll Deductions – Threshold 1 – EMPTX – (PD7A)
5) Federal Payroll Deductions – Threshold 2 – EMPTX – (PD7A)
Here are some common banks and how to sign up with their online banking system:
- CIBC – Small Business clients can enroll by signing in to CIBC Online Bank
- RBC – Speaking with your account manager to enroll your account into the system;
- Scotiabank – Scotia OnLine Financial Services already enrolls their users into the system. ScotiaConnect users will need to pay $25 and fill out a form to get enrolled (http://www.scotiabank.com/ca/en/files/16/05/GovernmentTaxPayment_enrollmentEN.pdf)
- TD Bank – Users are enrolled and can may payments through EasyWeb.
4. A service provider
This refers mainly to source deductions for your RP/payroll account paid by ADP, Ceridian, or other payroll service provider. This payment arrangement is set up directly with the service provider.