Guide to Paying Your Small Business Taxes Online

Paying your taxes online is a convenient and efficient way to fulfill your tax obligations to the Canada Revenue Agency (CRA). In this article, we’ll guide you through paying your small business taxes online in BC and what essential information to have on hand.

Create Your CRA My Business Account

To register, you have two options:

Option 1: Register Through a Sign-In Partner

This option allows you to sign in to the CRA with the same sign-in information you already use, such as for online banking. The registration process with this method is straightforward as long as you have an account with an authorized Sign-In Partner.

Option 2: Register Directly Through CRA

  1. Enter your social insurance number, date of birth, and tax information.
  2. Create a CRA user ID and password.
  3. Select your security questions and answers.
  4. Select a preferred method for multi-factor authentication.
  5. Once you receive a security code, you’ll need to log in, review the terms and conditions, and provide your Business Number.

Then, you’ll have full access to your My Business Account. So what next?

Reviewing Your Outstanding Balances

Once you’ve linked your business to your account, you can access your tax information and view any outstanding balances or payments you need to make. Review this information carefully to ensure that it’s up-to-date and accurate. If you need to make any changes, you can do so directly through your account.

How To Make a Payment 

To pay, log in to your CRA account and select the “Payments” option. From there, you can choose the type of payment you’d like to make and enter the amount. You can make payments using a credit card, debit card, or pre-authorized debit. Here are the five main ways to pay for your small business taxes:

1. Online Banking

Log into your Financial Institution and select “Add a Payee.” You’ll have the following options:

  • Federal – Corporation Tax Payments – TXINS
  • Federal – GST/HST Payment – GST-P (GST-P)
  • Federal Payroll Deductions – Regular/Quarterly – EMPTX – (PD7A)
  • Federal Payroll Deductions – Threshold 1 – EMPTX – (PD7A)
  • Federal Payroll Deductions – Threshold 2 – EMPTX – (PD7A)
  • Federal – Canada emergency wage subsidy repayment

Add your 15-digit business number and your CRA account number. Triple-check these before hitting send to ensure the payment is applied to the correct account. Payments are typically received in five business days. Pay on time to avoid fees and interest.

2. My Payment Portal

Do you use a Visa Debit or Debit Mastercard for your business banking? Then, you can use CRA’s My Payment portal.

This is a great option if you don’t have business credit cards. However, you should double-check your daily transaction limit to know if it’ll be processed. Payments are normally received within one to three days.

3. Pre-Authorized Debit

You can also create a Personal Authorized Debit (PAD) through your My Business Account. Select the “Proceed to Pay” button, then hit “Schedule” to create your PAD agreement.

You can access “Manage pre-authorized debit” from the “Business Balance and Services” section on the Business Overview page. From there, you can view, modify, cancel, and skip payments.

When setting up the agreement, you’ll outline the payment amount and the date(s) on which they should be made. While going through this process for the first time, remember that the first date must be at least five business days from when you set it up.

4. Credit Card, Paypal or E-Transfer

The CRA uses the third-party PaySimply to process all credit card, PayPal, and e-transfer payments. This service does charge a fee for processing the payment, and processing times can vary.

5. Paying Offline

Feeling old school and want to make payments in person? You can request Remittance Vouchers via your My Business Account. They’ll take up to ten business days to arrive, and you can use them to make payments at your financial institution, a Canada Post outlet, or via cheque in the mail.

Authorizing a Representative to Access Your Business Accounts

You can also give your accountant permission to access your business account and make payments on your behalf. You can provide them with authorization through your account by searching their RepID, GroupID, or Business Number.

You can also revoke their authorization through your account. All changes are instant, or you can specify an effective date.

Keep Records of Your Payments

No matter how you make your payments, make sure to keep their confirmations for your records. This will be helpful in case you need to verify your payment history at a later date.

Small Business BC is Here to Help

SBBC is a non-profit resource centre for BC-based small businesses. Whatever your idea of success is, we’re here to provide holistic support and resources at every step of the journey. Check out our range of business webinars, on-demand E-Learning Education, our Talk to an Expert Advisories, or browse our selection of business articles.