Ronika Khanna shows how to pay corporate taxes through online banking. Find your tax amount in CRA My Business Account or your notice of assessment, then use your bank's tax payment service to enter your 15-character account number and choose whether you're paying what you owe or making instalments.
Hello everyone. Today we are going to look at how to pay your corporate taxes payable or installments or the amount that you owe when you file your tax return through online business banking. And so the first step is to go to your cra, my business account, Revenue Canada's my business account and determine how much you owe. Or you might have received a notice of assessment in the mail and you can simply use that to determine the amount payable. I like going here just to make sure that I'm paying the right amount, that there are no additional interest or penalties that may apply. So to determine your corporate taxes payable you can simply scroll down on the main page and you'll see here it tells you how much you owe. Alternatively you can go to mail on the left hand side and you can see your latest corporation notice of assessment.
So once you have done that, then we are going to go into online banking.
And I will show you how to pay this $1,502.16 which and keep in mind, this is the amount owing or the balance due. So let's move over to online banking and we'll go to the tax payment and filing service.
Once we're in our online banking you would go to the pay bills section. Generally speaking, this is the TD interface. This is where it but if you're an RBC or BMO or CRBC it will also have a pay bills section and that's generally where you can find the tax filing service. So click on pay bills and it'll generally be a subset of the menu and you can simply go to Tax payment and filing.
Okay, so let us choose Make a tax payment of filing which will be next to your business. If you haven't signed up, you can generally just sign up through here. There's an agreement and then there are some fees that apply. So let's click on that. Make a tax payment and filing. And now we are going to add a payment type. And the payment type is this Federal Corporation Tax payments. So if you click on add a payment payment type you're going to go to Federal Tax. And here you can either go to Federal Federal Corporation tax payments or Federal Corporation income tax balance due, which is what we have in the amount on the website, which is the amount owing or the balance due. Same thing.
But in this case I want to show you the other boxes that are available on Federal Corporation Tax payments. So I'm going to click on this and then we'll click on next. And here you are required to put your tax account number and Your tax account number always ends in RC Triple 0, usually 1, but it can be 2 or 3 depending on if there has been been some amalgamations or there has been a change in status of your tax account. You'd find your tax account number simply by going to.
The top of the interface over here and you would copy and paste the number.
And then you can simply paste this here. Now let's look at what it requires. It requires an account digit that's 15 characters long and rc followed by rc and then the last four digits. So it's rc and in this case it's 0001. If you are not sure about this, you can go down here and see whether it is RC1 or something else. Then the fiscal year, you want to put the beginning of the fiscal year. So in my case it's April. I'm going to click next and then I will click done.
Now that it is set up, I am going to simply select this and then click on pay.
So now you will choose the account that you're going to pay for. Make sure that you have the balance in the account available to make the payments. It's very important. And you are going to select a tax account to pay. Usually you're just going to have one from the drop down it might just show up automatically. I have two, so I'm going to select the second one. And the period ending is is Your year end March 31, 2023.
The year end will appear on the notice of assessment on the top right corner.
Now we have three options here. The first option is the amount owing and that is the balance that is due is 1500 and 2 16. So I'm just going to enter that here.
However, we can also do interim payments which are installment payments. And you are required to pay installments under certain circumstances, which is primarily if your taxes for the previous year were over $23,000. Finally, and keep in mind you can future date this transaction so you can set up all your installments at one time. You just always want to make sure you have enough funds in the account. Payment on filing is when you have filed your corporate tax return or you're about to file it and you just want to pay the balance at the same time and that's when you would enter this amount here.
So it probably doesn't make a huge difference. But you do want to get this right because sometimes they will misallocate it and then you have to call them and get them to transfer it. It's a bit of a process. So it's just better to get it right over here. So again, if you have a notice of assessment, you will put it into amount owing and that will include everything that you owe for the year end in question. Once you've done that, the payment date I have set for tomorrow, but you can change this date if you'd like. You can make it for next week, you can make it for next month, whatever you would like. Then you click next.
I did not select the account.
And you click next and then you make sure everything looks good. The account, the tax account. You might want to verify this again to make sure you entered it correctly. The payment amount owing or if you're making installments, it would be interim payment on filing. If you are just simply filing your tax return or making a payment at that time, make sure the payment date is good and then when if all this looks good, you would click on Submit. Once you click on Submit, you'll get a confirmation indicating that the amount has been paid and a confirmation number. I highly encourage you to save that as a PDF to the accounting or tax folder on your computer just in case you need it in the future. It is useful to have and you may not need it for a few months. It is useful to have so that concludes our short tutorial on how to pay your corporate income taxes using business online banking. I hope this was useful. If you have any questions, don't hesitate to leave me a comment and I will answer it as quickly as possible and please subscribe. Have a great day.
