A frequently asked question from clients is, “How do I make a payment to the CRA?” The Canada Revenue Agency (CRA) offers multiple payment methods, allowing you to select the one that best fits your needs. In the past, taxpayers would use remittance forms provided by the CRA to pay at bank tellers or by mail through Canada Post. These forms had magnetic ink encoding to ensure payments were applied to the correct taxpayer and tax year. Although these traditional remittance forms are still available by special request, the CRA is now encouraging more electronic payment options, which are easier for taxpayers to use.
Electronic Payment Options
Two common electronic payment options are through your financial institution’s online banking bill payment service or via CRA’s My Payment service.
Online Banking
Paying through online banking is as simple as setting up a new payee, similar to how you would for a utility bill or credit card. For individuals, you enter your Social Insurance Number (SIN) as your account number and select the payment option, such as payment on filing, arrears balance, or installment. Businesses need to select “Business Tax Payment” or a similar option within bill payments to make CRA payments, then choose the type of payment, such as GST, corporate tax, or payroll. Many banks also allow you to file your GST or payroll remittance at the same time as the payment.
CRA’s My Payment Service
The CRA’s My Payment service, which has been available for several years, accepts Interac Debit, Visa Debit, or Debit Mastercard payments. This service uses the same login information as your online banking account, so you don’t need to remember another password. Unlike online banking, which can take a day to process, My Payment provides immediate confirmation, making it ideal for last-minute tax payments. The steps for My Payment are similar to online banking: you select your payment type, account number, payment period, and amount. After reviewing the payment, confirm and click “Pay Now” to proceed with the payment.
Pre-Authorized Debit (PAD)
You can also set up pre-authorized debit (PAD) payments to the CRA. PAD payment agreements can be arranged for a one-time payment or a series of payments, such as installments. You can create a PAD payment agreement in your CRA My Account or by asking your electronic filer to complete and file form T185, Electronic Filing of a Pre-authorized Debit Agreement.
Credit Card Payments
While not free, credit card payments are an option for those who prefer to earn points. Two third-party providers, PaySimply and Plastiq, accept credit card payments for a fee of about 2.5%.
In-Person Payment Options
For those who prefer in-person payments, you can visit a Canadian bank, financial institution, or credit union if you have a personalized remittance voucher. Personalized remittance vouchers can be requested through CRA’s My Account or by calling the appropriate general enquiries line (1-800-959-5525 for businesses or 1-800-959-8281 for individuals). Individual taxpayers may also be able to have their tax return preparer print a personalized remittance voucher for in-person payments via cheque or debit.
The CRA’s newest payment option allows you to pay in person with cash or debit at any Canada Post outlet across Canada using a QR code that contains information to credit your account. Personalized remittance vouchers from the CRA or your tax return preparer will already have this QR code. If you don’t have a personalized remittance voucher, you can create a QR code at PaySimply. Service fees for Canada Post payment services range from $3.95 to $7.95, depending on the payment amount.
Conclusion
These various methods provide flexibility for taxpayers, making it easier to manage your tax payments. For detailed advice tailored to your situation, consider reaching out to us.