Every day, it becomes possible to handle more and more business over the internet, and the Canada Revenue Agency is also part of this shift. Thanks to My Payment, you can now pay all kinds of federal taxes online.
What Is My Payment?
My Payment is a secure electronic payment service accessible through the CRA’s website. The service allows you to use Visa debit or Interac Online bank access cards. As of 2017, your Visa debit card must be from the Canadian Imperial Bank of Commerce, RBC Royal Bank, Scotiabank, or TD Canada Trust. Interac Online cards from over five dozen financial institutions also work.
What Taxes Can You Pay With My Payment?
You can pay all kinds of federal taxes with My Payment, and you can pay them with a single payment. For example, if your small business owes $2,000 in payroll tax, $3,500 for 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 of those obligations.
What Does My Payment Cost?
The CRA does not charge anything to use My Payment, but some financial institutions 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 My Payment.
What Do You Need to Use My Payment?
In addition to a Visa debit or Interac Online card, 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, the reporting period, and payroll information.
How Do You Use My Payment?
To use My Payment, head to the CRA’s website, and click on Start My Payment. That directs you to a list of hyperlinked payment options. For individuals, the options include income tax and child and family benefits repayments. For example, if you are a self-employed individual who pays individual income tax quarterly, you can click on the individual income tax hyperlink to make your payment. For businesses, the options include GST/HST, corporate income tax, payroll source deductions, excise taxes, and other business taxes. Again, you just click on the link for the tax you want to pay. Once you select the type of tax you need to pay, the program prompts you to enter a few more details about the payment, and then you enter your card number and expiration date to complete the 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. Mailing cheques to the CRA can get cumbersome, especially if you pay lots of different federal taxes. My Payment simplifies the process, and it allows you to pay all of your taxes in a single transaction. If you don’t have a Visa debit or Interac Online card, you may want to consider getting one just for the ease of these online payments.