Paying taxes to the Canada Revenue Agency (CRA) is a crucial aspect of tax compliance for individuals, corporations, and non-residents with Canadian tax obligations. Whether you're paying income tax, GST/HST, payroll remittances, or installment payments, understanding the correct payment procedures can help you avoid penalties and interest charges. GTA Accounting has prepared a comprehensive set of guidelines to help tax filers make payments to the CRA accurately and on time.

Why Accurate Payments to the CRA Matter

Making accurate and timely payments to the CRA ensures compliance with Canadian tax laws and prevents issues such as penalties, interest, or collection actions. It also helps maintain good standing with the CRA, minimizing the risk of audits or enforcement measures.

How to Make Payments to the CRA

There are several ways to make tax payments to the CRA, each with its procedures and requirements. Here’s a step-by-step guide to ensure your payment process is smooth and error-free.

1. Paying Online Through CRA My Account

The simplest way to pay the CRA is through the CRA My Account for individuals or the CRA My Business Account for businesses. This method allows you to pay using a variety of options:

  • Pre-authorized debit: Set up one-time or recurring payments directly from your bank account.
  • Credit or debit card: Use the CRA’s third-party payment processors (Plastiq, PaySimply) to make credit or debit card payments.
  • Interac e-Transfer: Some banks offer Interac e-Transfer as a payment option for CRA balances.

To set up an account and pay, visit CRA My Account or CRA My Business Account.

2. Paying Through Online Banking

If you have online banking set up with a Canadian financial institution, you can pay your CRA taxes like regular bills. Here’s how to set up the CRA as a payee:

  • Log in to your online banking portal.
  • Search for "CRA" or "Revenue Canada" in the list of payees.
  • Choose the appropriate payee:some text
    • "CRA (revenue) – current-year tax return" for income tax payments.
    • "CRA GST/HST" for GST/HST payments.
    • "CRA payroll" for payroll remittances.
  • Enter your 9-digit Social Insurance Number (SIN) or Business Number (BN) as the account number.
  • Specify the amount and confirm the payment.

For more details, visit the CRA’s guide on paying through online banking.

3. Paying by Mail

If you prefer to pay by mail, you can send a cheque or money order directly to the CRA. Follow these steps:

  • Make your cheque or money order payable to the "Receiver General for Canada."
  • Write your SIN, BN, or Trust Account Number on the front of the cheque.
  • Include a completed Remittance Voucher with your payment.
  • Mail the payment to the CRA’s appropriate address, depending on your location and payment type.

Be aware that mailing payments may result in delays, so allow sufficient time for delivery to avoid late fees.

4. Using a Third-Party Service Provider

The CRA has partnered with third-party service providers to accept credit card, PayPal, and Interac e-Transfer payments. These services offer convenience and flexibility, allowing you to choose the payment method that best suits your needs. While convenient, these services often charge a transaction fee.

Common providers include:

  • Plastiq
  • PaySimply
  • Paytm

You can access these services through the CRA’s third-party payment options page.

5. Paying at Your Bank or Canada Post

You can also pay in person at your bank or Canada Post location:

  • At the bank: Visit your branch with your remittance voucher and payment.
  • At Canada Post: Use the Canada Post "PaySimply" service to pay in person using cash or debit.

Ensure you bring a completed remittance voucher to facilitate the payment process.

6. Setting Up Installment Payments

If you owe more than $3,000 in taxes (or $1,800 for Quebec residents), the CRA may require you to pay in installments. Installments help spread tax payments yearly and prevent large balances at tax time. To set up installment payments:

  • Review your Installment Reminder from the CRA.
  • Use Form T7DR(A), the personalized installment payment form provided by the CRA.
  • Make installments quarterly by the due dates: March 15, June 15, September 15, and December 15.

For more information, check the CRA’s installment payment guide.

7. Managing Payment Arrangements

If you’re facing financial difficulties and cannot pay your total tax amount, the CRA may allow you to set up a payment arrangement. This involves making smaller, regular payments over time. To request a payment arrangement:

  • Call the CRA at 1-888-863-8657 for individual accounts or 1-877-477-5068 for business accounts.
  • Prepare your financial information, including income, expenses, and assets, to discuss your ability to pay.

You can also use the CRA My Account or My Business Account to propose a payment plan.

Why Choose GTA Accounting for Tax Payments to the CRA?

At GTA Accounting, we help ensure that all your CRA payments are accurate and timely. Our services include:

  • You provide guidance on the correct payment method for your tax obligations.
  • I am setting up pre-authorized debit for recurring payments.
  • I am assisting with installment payments and payment arrangements.
  • We also manage communications with the CRA on your behalf, addressing any payment issues and ensuring that your tax matters are handled professionally.

Conclusion

Accurate and timely tax payments are not just a requirement, but a vital aspect of staying compliant with the CRA and avoiding penalties or interest charges. By following GTA Accounting’s guidelines, you can confidently make your CRA payments and ensure that your tax obligations are met efficiently.

If you have any questions about making payments to the CRA or need assistance with your tax filings, don't hesitate to contact GTA Accounting today. We’re here to help you manage your tax payments smoothly and ensure you meet all your tax obligations.