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 the process of paying your small business taxes online in British Columbia, including the steps you’ll need to follow and the information you’ll need to have on hand.

Create Your CRA My Business Account

The first step is to create your My Business Account on the CRA website <canada.ca/my-cra-business-account>. To create the account you’ll need to input your social insurance number, postal code, your date of birth and the amount you entered in your income tax return from either this year or the previous year.

You’ll then need to select a method for the CRA to send your security code for access to your account.

After this you’ll be asked to create a CRA user ID and password, and select five security questions. Once you’ve done this, you’ll review the terms and conditions and click “I agree”.

Once you receive your security code you’ll need to log in, review the terms and conditions, and then provide your Business Number. You’ll now have full access to your My Business Account. So what now?

Reviewing Your Outstanding Balances

Once you’ve linked your business to your CRA My Business Account, you’ll be able to access your tax information and view any outstanding balances or payments you need to make. Make sure to 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 make a payment, you’ll need to log in to your CRA My Account and select the “Payments” option. From there, you’ll be able to select 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.

Your Financial Institution

Log into your Financial Institution and select Add a Payee. You will 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

Then add your 15-digit business number as your CRA account number. Triple-check this, before hitting send, to make sure the payment is applied to the right account. Payments are normally received in 5 business days.

My Payment Portal

Have an Interac Debit, Visa Debit or Debit Mastercard for your business banking? Then you can use the CRA’s My Payment portal.

This payment is a great option, if you do not have business credit cards, however, you will need to make sure you know your daily transaction limit, to make sure it will go through. Payments are normally received in one to three days.

Pre Authorized Debit

You can create a PAD (Pre Authorized Debit) agreement through your My Business Account, by selecting the “Proceed to Pay” button and selecting “Schedule”, you can also view, modify, cancel and skip payments via your My Business Account.

When setting up the agreement, you will outline the payment amount and the date(s) that it should be made on. When setting this up for the first time, please remember that the first date must be at least five business days from when you set up the agreement.

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.

Paying Offline

Feeling old school and want to make payments in person? You can request Remittance Vouchers via your My Business Account. They will take up to ten business days to arrive via mail, you can then use these to make a payment at your financial institution, at a Canada Post outlet, or pay via a 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 authorize them via your My Business Account, searching for them using their RepID, GroupID, or Business Number. You can also revoke the authorization via the account too. All changes are instant, or you can specify an effective date.

Keep Records of Your Payments

No matter the way you have made your payment, you’ll need to make sure you keep confirmations of your payments, for your records, in case you need to verify your payment history at a later day.

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.