Very often I am asked by my client “How should I make the payment to CRA”. There are multiple ways of making payments to CRA. I am listing them below:
- Mail Cheque to CRA for payment: it will take time to process the payment by CRA and also there is a risk of mail getting lost in delivery which will result in late payment penalties. However, if you decide to make the payment by cheque then make sure you write your SIN# or CRA Business # (HST or Payroll or Corporation Tax) and the period end for which the payment is made. If not CRA will not know why this payment is made and they will not allocate the payment to the correct account.
- Make payment through CRA my payment account: CRA has a weblink where in you can go online into the CRA portal and make the payment. The link for this payment method is https://www.canada.ca/en/revenue-agency/services/e-services/payment-save-time-pay-online.html . This link method can be used to make payment through Interac or visa debit. However, you have to be mindful of your daily online payment limit set by your bank. This method of payment is not suitable for large payments like HST and Corporation tax.
- Make payment through your online banking: This is the fastest and easiest method of making payments to CRA. You have to first add your SIN# CRA Business # as a payee in your online banking portal. You have to select the correct account you want to pay such as HST payment on filing or interim or arrears etc as there are many options. Once you select then proceed to pay for the right period and the right amount. You can also use this method to pre-set monthly instalments for the future so the payments are taken automatically from your bank account so you don’t pay any interest and penalties on missed out installment payments. To understand better this process I have made a video explaining how to make this method of payment. You can watch them below
