One reality of running a business in Canada is that you’ll need to pay taxes to the Canada Revenue Agency. The CRA collects business income taxes, GST/HST payments, and payroll remittances from employers.
If you’ve been running your business for a while, you’ve probably already had to make some of these payments. Maybe you went to your financial institution to make a payment, paid through the CRA’s online channel, or wrote a cheque to the CRA.
Did you know there are many different ways to make a CRA remittance payment? Here are all the ways you can make sure your payments are getting to the CRA on time.
What Is a CRA Remittance Payment?
There are several different scenarios in which you’ll need to make a CRA remittance payment. The most common is to submit your business taxes. These payments are usually annual, although many businesses pay in quarterly installments. Some businesses may be required to pay in installments.
Another type of remittance payment is the GST/HST tax payment. If your business makes over $30,000 in gross sales per calendar year, you’ll need to collect HST or GST from your clients. The type of tax you collect depends on where your clients are located. GST/HST payments are made either annually or in most cases via quarterly installment payments.
Finally, if you have employees, you’ll need to collect payroll remittances and submit them to the CRA on a regular basis throughout the year. If your employees are paid biweekly, you’ll need to collect deductions for employment insurance, the Canada Pension Plan, and income tax. These must be submitted to the CRA by their required deadlines.
Make a Payment by Cheque
The most common way of sending remittance payments used to be by cheque. The CRA still accepts cheques, including personal cheques.
However, cheques are costly. They take time for you to print up, send out, and process once they arrive at the CRA. They’re especially unwieldy if you need to pay the CRA on a frequent basis.
You Can Transfer from Your Financial Institution
Another way you can make a CRA remittance payment is by transfer from your financial institution. You’ll need your documentation from the CRA, including your business number.
You can send payments by going to your local bank branch. Alternatively, you may be able to pay online using an online banking service or banking app.
Pay at a Canada Post Outlet
Another option is to pay at a Canada Post outlet. You can use cash or debit at these outlets to pay your taxes. This isn’t usually the ideal option for most business owners, but it could help if you work in a rural area.
Use Your Credit Card to Make a Payment
The CRA doesn’t accept credit card payments directly. Instead, the agency has partnered with different providers to allow business owners to make remittance payments using their preferred credit cards.
This is probably the best option for business owners, as there are so many advantages. You can make the payment on the card, then pay it later. This helps with cash flow, which is a huge consideration for small businesses.
It also allows you to ensure you pay on time, as well as avoid interest on loans or overdraft if your cash flow is tight. Finally, it allows you to take advantage of your credit card reward or rebate program. Even your CRA remittances can help you earn points or cash.
Want to Make Credit Card Payments to the CRA?
Paying by credit card for a CRA remittance payment just makes good sense for many business owners. If you want to get started, talk to a provider about how you can streamline your payments.
The information in this article is for educational and information purposes only and should not be relied upon for decision making. Always seek the expertise of a professional advisor or accountant prior to making any decisions.