Paying taxes by cash and cheque are time-consuming processes. In this case, you have to visit any collection office of your corporation. Any Canadian Tax Consulting Service will ask to pay your tax amounts online to experience efficiency and an error-free process.
Online banking is one of the most popular payment options in Canada. To pay taxes to the Canada Revenue Agency or CRA, you need to use a Canadian financial institution’s online banking option. To pay corporate taxes online, you can also use a business bank account. You can create reminders of your tax payment date in your account of your financial institution.
The process to pay individual taxes online
To pay a tax amount, you have to follow some steps perfectly. At first, you need to sign in to your financial institution’s online banking service’s individual account. Then check the “Add a payee” section. Under this section, you can find three different options.
The first option is CRA (revenue) – current-year tax return. Click this option to file your current fiscal year’s tax return.
The second option is CRA (revenue) – tax amount owing. Use this option to pay pending tax amounts of previous fiscal years.
The third option is CRA (revenue) – tax instalment. You can use this option to pay the tax amounts of the upcoming fiscal years.
After choosing an option, you need to enter your CRA account number which is actually your 9-digit social insurance number.
The process to pay corporate taxes online
To pay your corporate tax online, at first, you need to sign in to your financial institution’s online banking service’s business account. Then check the “Add a payee” section and the options listed under it.
There are five different options and they are 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) and Federal Payroll Deductions – Threshold 2 – EMPTX – (PD7A). Choose any one of these options according to your requirements. However, if you are confused, you can take advice from a tax consultant in Toronto.
After choosing an option, you need to enter your CRA account number and unlike individual tax system, this CRA number should be your 15-digit business number.
There are a lot of financial institutions and they are preferred by citizens to set up online banking with CRA. Some of these institutions are ATB Online (for individuals), ATB Financial (for businesses), Citibank, HSBC, BMO and a lot more.
At the Accounting & Tax, our accountants and tax experts keep themselves well-informed about the latest tax-related technical upgrades offered by the Canadian Government and different financial institutions. You will experience the benefits of the fast, smooth and reliable payment procedure. For any type of assistance, you can contact our technical support team.