
Business
Many businesses treat the filing of a return as the finish line.
It is not.
Filing a return and paying a balance owing are two separate obligations. The return reports what is owed. The payment satisfies it. Treating them as the same thing is one of the most common, and most avoidable, causes of interest charges, misapplied payments, and unnecessary friction with the Canada Revenue Agency (CRA).
For any business working with an accounting and bookkeeping firm in Toronto or across Canada, knowing how to pay the CRA correctly is part of disciplined financial management. Whether the balance relates to corporate income tax (T2), GST/HST, or payroll remittances, the payment must reach the correct program account, on time, and through an approved method.
This guide explains the most common ways to remit a balance to the CRA, the information to have ready before paying, and the mistakes that cost businesses both time and money.
A corporation can file a flawless return and still fall offside if the payment is late, incomplete, or applied to the wrong account.
Filing deadlines and payment deadlines are not always the same. For many corporations, the balance of tax is due before the return itself. Interest begins to accrue on any unpaid balance from the due date, regardless of when the return is filed.
This is why payment should be treated as a scheduled event, not an afterthought. A business that knows what it owes, which account it belongs to, and how it will pay is far less exposed than one that scrambles at the deadline.
Before making any payment to the CRA, have the following ready:
The program identifier matters. A payment entered against the wrong account, such as corporate tax instead of payroll, can create a balance in one account and an apparent shortfall in another, even though the money was paid.
Important: Any payment to the Receiver General over $10,000 must be made by electronic means. Cheques are still accepted for amounts of $10,000 or less, but electronic payment is strongly recommended for speed, security, and traceability.
There are several approved ways to remit a balance to the CRA. The right one depends on the amount, the timing, and the account being paid.
Log in to your business online banking with any major Canadian financial institution, select Add Payee, and search for the correct CRA payee name. Common options include:
CRA My Payment lets you pay using Visa Debit, Debit Mastercard, or Interac Online from a
participating Canadian financial institution. Credit cards are not accepted through this service.
On the CRA website, select Pay now, choose Businesses, select the relevant program such as corporate income tax (T2), enter the BN, tax year, and amount, then complete the payment. It is immediate and provides instant confirmation.
A pre-authorized debit is set up through CRA My Business Account. Select the relevant account, choose Proceed to pay, then Pre-authorized debit, and follow the prompts to schedule a one time or recurring payment.
PAD takes about five business days to set up the first time, so it should be arranged in advance rather than at the deadline. It is well suited to recurring obligations such as payroll remittances and tax instalments.
Wire transfers are typically used by non-resident corporations or for very large payments. The banking details and SWIFT code are available on the CRA website. The BN and program identifier must always be included as a reference, otherwise the CRA may be unable to apply the payment correctly.
Payments can be made in person at your bank using the personalized remittance voucher provided by the CRA. If you do not have a remittance voucher, one can be requested through CRA My Business Account, or your accounting firm can obtain it on your behalf.
Make the cheque payable to the Receiver General for Canada, and write the BN and tax year-end on the front, for example 123456789RC0001, T2 year-end 2025-12-31. Mail it with the remittance voucher to the CRA.
Keep in mind that the CRA considers a payment received on the date it actually reaches the CRA or its agent, not the date it was mailed. Allow at least five business days for delivery.
The date a payment is received, not the date it is sent, is the date that counts.
This single detail causes more avoidable interest charges than almost any other. A cheque mailed on the deadline is late. A pre-authorized debit arranged the day before a deadline may not be active in time. Electronic payments made through online banking or CRA My Payment are the safest way to ensure the CRA receives funds on the intended date.
For businesses managing multiple obligations across corporate tax, GST/HST, and payroll, a clear payment calendar is essential.
Across small and mid-sized businesses, the same payment mistakes appear repeatedly:
None of these mistakes are complicated. They simply reflect the difference between a business that has a system and one that does not.
Paying the CRA is not a standalone task. It is the final step in a chain that begins with accurate bookkeeping.
When books are current, balances are known well before deadlines. When GST/HST and payroll are tracked monthly, there are no remittance surprises. When records are clean, the correct amount is paid to the correct account the first time.
In other words, how well a business pays the CRA is a direct reflection of how well its records are maintained throughout the year. Strong bookkeeping and accounting services in Toronto should connect record keeping, reporting, and payment into a single, predictable process.
At Progress Group, our Toronto accounting and bookkeeping services are built to support the full compliance cycle, not just the filing of a return.
We help businesses:
Our work is designed to help businesses move from reactive filing to structured tax management.
Because paying the CRA should never be guesswork. It should be built into the way the business operates.
Online banking is generally the fastest and most reliable method. Once the CRA is set up as a payee, payments are processed quickly and a confirmation number is provided immediately.
Most businesses pay through online banking by selecting the federal corporation tax payee, entering the fifteen-character account number ending in RC0001, and submitting the amount. CRA My Payment and pre-authorized debit are also available.
Not directly through CRA My Payment, which accepts only Visa Debit, Debit Mastercard, and Interac Online. Credit cards, including Visa, Mastercard, and American Express, as well as PayPal, can be used through third party service providers authorized by the CRA, though those providers charge a processing fee.
Yes. Payments to the Receiver General over $10,000 must be made by electronic means. Cheques remain acceptable only for amounts of $10,000 or less.
The payment can usually be transferred to the correct account or period. If this happens, contact your accounting firm promptly so the transfer can be requested through the CRA before interest or compliance issues arise.
Yes. Progress Group helps businesses across Toronto and Canada manage corporate tax, GST/HST, and payroll payments, set up CRA payment methods, and maintain a clear payment and compliance calendar.
