Pay Corporate Taxes Online

Deadline Approaching? How to Pay Corporate Taxes Online

Tax season got you down? Feeling that creeping dread as the corporate tax deadline gets closer? You’re definitely not alone. Many business owners find themselves scrambling at the last minute, trying to figure out the online payment system.

But what if paying your corporate taxes online could be, dare we say…easy? This guide breaks it all down, so you can ditch the stress and get back to what you do best – running your business!

Here’s what we’ll cover:

• The exact, step-by-step process for online payment.
• Different online payment methods that are accepted by the CRA.
• Common mistakes to avoid, saving you time (and money!).

We at NRK Accounting get it. Dealing with taxes can be one big headache. Our team of licensed tax accountants in Toronto has been helping businesses, just like yours, for over 20 years.

CRA’s Online Payment: A Step-by-Step Walkthrough

Forget mailing cheques! Paying your corporate taxes online is faster, and frankly, way more convenient. Let’s break down the process into manageable steps. There are two main avenues: using your bank’s online service, or the CRA’s My Payment.

Option 1: Through Your Canadian Bank or Credit Union

Most major Canadian financial institutions offer corporate tax payment services directly through their online banking platforms.

1. Log In: Access your online banking account. The one you usually use for everyday business transactions.
2. Find the “Pay Bills” or “Payments” Section: This might be labeled slightly differently depending on your bank, but look for something similar.
3. Add a Payee: You’ll need to add the CRA as a payee. Search for “CRA” or “Receiver General”. You might see options like:

• CRA – Corporation Tax – (TXINS)
• CRA – Corporation Tax Payment – Current Year (CORP)
• CRA- Revenue-GST/HST
• Select the correct one based on what kind of installment or tax type you are trying to pay.

1. Enter Your Account Number: This is your 15-digit Business Number (BN). Double, triple-check this number! A typo here can cause serious delays.
2. Enter the Payment Amount and Date: Be absolutely sure about the amount. Consider adding a case study here, illustrating a company, that failed to submit correct information, facing interest payments.
3. Confirm and Save: Review everything carefully. Once you confirm, save a copy of the transaction record for your files.

Option 2: Using CRA’s My Payment Service

My Payment is a direct payment service run by the CRA.

1. Go to the CRA Website: Head to the official CRA website (canada.ca/en/revenue-agency.html).
2. Select “My Payment”: Look for the “My Payment” option. It’s usually prominently displayed.
3. Choose Your Payment Method: My Payment lets you pay directly from your bank account (like Interac Online) or using a Visa® Debit, Debit MasterCard® or Interac® card.
4. Follow the Prompts. There are visual tutorials on the CRA website that would be very useful to include here.
5. Again, Your Information. Carefully put in your BN, tax type and so on.
6. Save your Receipt. You will want to have a record.

Regardless of the method you choose, make the payment at least a few business days before the official due date. This gives the payment time to process and avoids any late-payment penalties. Better safe than sorry.

Pick Your Payment: CRA’s Accepted Online Methods

The CRA actually gives you several options for paying your corporate taxes online. It’s not a one-size-fits-all situation. Here’s the breakdown:

1. Online Banking (As We Just Covered)

• How it works: You initiate the payment directly through your bank’s website or app, just like paying a regular bill.
• Pros: Convenient if you’re already familiar with your bank’s online system. No need to create a separate CRA account.
• Cons: Requires you to have online banking set up with a participating financial institution.

2. CRA’s My Payment

• How it works: This service on the CRA website lets you pay directly using:
  • Interac Online (from participating banks/credit unions)
  • Visa® Debit
  • Debit MasterCard®
• Pros: Good option if your bank doesn’t offer direct corporate tax payments, or if you prefer to use a debit card.
• Cons: You can’t use a regular credit card (see below for that option).

3. Pre-authorized Debit (PAD)

• How it works: You authorize the CRA to automatically withdraw payments from your bank account on specific dates. You set it up through CRA’s My Business Account.
• Pros: Fantastic for avoiding missed deadlines. Set it and forget it!
• Cons: Requires a bit of setup. You need to be comfortable with automatic withdrawals. A case study opportunity exists here to show the benefits of automatic payments.

4. Third-Party Service Providers (Credit Cards)

• How It Works:
  1. You can use a third-party service provider that accepts credit cards.
  2. The provider sends payment and remittance details to the CRA.
  3. Please not that there are fees associated with this option!
• Currently Accepted Third-Party Providers:
  1. Plastiq
  2. PaySimply
• A great area to create a chart/diagram outlining each third-party service provider, the payment type and fees involved.
• Pros: Allows you to use your credit card (and potentially earn rewards).
• Cons: These providers charge a fee for their service. You need to factor that in.

5. Wire Transfers (For Larger Amounts)

• How it works: For very large tax payments, you might need to use a wire transfer. This is typically done through your bank.
• Pros: Secure for large sums.
• Cons: Usually involves higher fees than other methods. Contact your bank for specific instructions.

You’ve got choices! Pick the method that best suits your business needs and your comfort level with online payments. Don’t be afraid to try a different method next time if one doesn’t work out.

Avoid These Costly Corporate Tax Payment Mistakes

Even small errors when paying your corporate taxes online can lead to headaches, delays, and potentially penalties. Let’s avoid that! Here are some common pitfalls to watch out for:

• Incorrect Business Number (BN): We’ve said it before, but it’s that Double, triple, quadruple-check that 15-digit number. One wrong digit, and your payment could end up in limbo.
• Wrong Payment Allocation: The CRA has different codes for different types of taxes (GST/HST, payroll deductions, corporate income tax, etc.). Make absolutely sure you’re selecting the correct one when making your payment.
• Procrastination: Waiting until the absolute last minute is a recipe for disaster. Online payments can sometimes take a few business days to process. Give yourself a buffer!
• Ignoring Confirmation Messages: Always save a copy of your payment confirmation. This is your proof of payment if anything goes wrong. Take a screenshot, print it, save the PDF – whatever works for you.
• Forgetting About Installments: If your corporation has to pay taxes in installments, you can’t just make one lump sum payment at the end of the year. You’ll likely face interest charges. Mark those installment due dates on your calendar! This is also a good opportunity to plug in a case study about a business that missed installment payments.
• Not Using Available Resources: The CRA website actually has a ton of helpful information, including FAQs and video tutorials. Don’t be afraid to use them!
• Mixing up accounting periods Enter the correct amount for the correct period in question.

Bottom line? Paying attention to detail is key. A few minutes of careful review can save you a lot of trouble (and potentially money) down the road. Take your time, double-check everything, and you’ll be golden. You got this.

Corporate Tax Payments? Handled. With NRK Accounting

Paying your corporate taxes online in Canada doesn’t have to be a scary, confusing ordeal. Armed with this guide, you can tackle the process with confidence and get back to focusing on what truly matters: growing your amazing business.

Here are your quick takeaways of the article:

• Online is the way to go: Faster, more convenient, and less paper!
• Multiple options exist: Choose the payment method that best suits your
• Details are everything: Double-check that BN and payment allocation!
• Don’t delay, pay today Avoid penalties and submit your payment well before the deadline.

Feeling a bit overwhelmed, still? That’s where NRK Accounting comes in. Our team of experienced tax accountants in Toronto has been helping businesses, small and large, conquer tax season for over two decades. We offer personalized service – think of us as your tax partners, not just number-crunchers.