Every day, it becomes possible to handle more and more business over the internet, and the Canada Revenue Agency (CRA) is now part of this shift. Thanks to My Payment, a system that allows individuals and businesses to make payments to the CRA, you can now pay your federal taxes online.
## What Is My Payment?
My Payment is a secure electronic payment service accessible through the CRA’s website. To make a payment, you need a bank access card or debit card with either a Visa, MasterCard, or Interac Online logo. You can also use a debit card from a participating financial institution in Canada. You may not use a credit card to pay taxes on the My Payment system.
## Can You Pay Taxes With My Payment?
You can pay many types of federal taxes with My Payment, and you can pay them in a single lump sum. For example, if your small business owes $2,000 in payroll tax, $3,500 in quarterly income tax, and $1,000 in excise taxes, you can log into My Payment and submit a single $6,500 payment to cover all those obligations.
## How Much Does My Payment Cost?
The CRA does not charge you anything to use My Payment, but some financial institutions may charge a fee to use this service. In most cases, the fee is a single transaction fee. Contact your financial institution directly to see if it charges for using the My Payment system.
## What Do You Need to Use My Payment?
In addition to a debit card with a Visa, MasterCard, or Interac Online logo, you also need your Social Insurance Number or nine-digit non-resident account number, if relevant. To pay taxes for your business, you need your business number as well as details such as the number of employees at your firm, the reporting period, and your company’s payroll information.
## How to Pay Canadian Taxes Online Using My Payment
To use My Payment, head to the CRA website, go to the Start My Payment section, and click “Pay Now.” That directs you to a list of payment options. For individuals, the options include Income Tax and Child and Family Benefits Repayments. If you’re a self-employed individual who pays individual income tax quarterly, you can click on Income Tax to make your payment.
For businesses, you have multiple options, including GST/HST, Corporate Income Tax, Payroll Source Deductions, Excise Taxes, and Fuel Charge. Again, just click on the link for the tax you want to pay. Once you select the type of tax, the program prompts you to enter a few more details about the transaction, and then you enter your card number and expiration date to complete the tax payment.
At the end of the process, a confirmation page appears along with a receipt of your payment. To be on the safe side, you should print out the receipt or save a digital copy for your records. That way, if the CRA doesn’t credit the payment properly, you have proof that you submitted it. My Payment simplifies the process of paying taxes, and it allows you to pay all your taxes in a single transaction. If you don’t have a Visa or MasterCard debit or Interac Online card, you may want to consider getting one just for the ease of these online payments.
## Request Free In-Person Tax Help From a CRA Liaison Officer
If you have a small-business tax question or if the thought of a Canada Revenue Agency audit worries you, relax: The CRA now offers free, in-house help for small businesses. The government realizes the huge role that small business owners pay in the Canadian tax system and wants to help them meet their obligations.
As part of this program, unincorporated small businesses can now request free in-person help, and small-business groups and associations can request free in-person seminars from CRA liaison officers. After a successful test run in the greater Montreal area, and as part of Finance Minister Dianne Lebouthillier’s promise to offer more client-focused service, the CRA offers this service at 130 offices located throughout the provinces and territories.
An in-person CRA liaison officer can:
* Answer your tax-related questions and address your concerns
* Discuss common tax errors and financial benchmarks in your business community
* Explain how various tools and services offered by the CRA can help your business
* Review your books and records, and provide recommendations on how to strengthen your bookkeeping system
For seminars, the officer can:
* Explain common tax errors
* Demonstrate how to use financial benchmarks for your group’s industries
* Describe how the CRA’s services can help your businesses
* Explain general bookkeeping concepts and best practices
This is an excellent opportunity to gain some tax knowledge, educate your staff, and get to know someone from your local CRA office better. Best of all, you don’t have to worry about whether a request for an in-person visit will result in an audit or the CRA reassessing your previous returns. More than 25,000 small businesses have taken advantage of this opportunity since the initiative began in 2014. All you have to do to join them is submit the Liaison Officer Service Request Form from the CRA website.
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