Staying Compliant with CRA During a Mail Strike
In October of 2018, Canada Post workers went on strike. It was not their first (nor likely to be their last) strike.
What Happens to CRA Payments During a Mail Strike?
During a mail strike, businesses are expected to remain complaint with Canada Revenue Agency (CRA) and Revenu Québec, and Canada Post must still deliver CRA’s Canada Child Benefit (CCB) and Working Income Tax Benefit (WITB). All other benefits from CRA are considered non-essential; if you are receiving non-essential payments via a cheque, it may be delayed.
For businesses, relying on the mail service means remitting and receiving documents and payments on time. Here is how to stay compliant when a mail strike is in force.
Avoid Mail Strike Disruption by Signing Up for Direct Deposit
Both companies and individuals can have CRA deposit payments directly into their bank accounts. For businesses, expected deposits include:
- corporation income tax refund
- goods and services tax/harmonized sales tax credit
- refund of excise tax or other levies
- refund of payroll deductions
For businesses, signing up for direct deposit is easy. It can be done online through My Business Account or by mailing (before or after the strike) Form RC366.
Leverage My Payment
Small business owners can use CRA’s My Payment online. The service accepts Visa Debit, Debit MasterCard and Interac (no credit cards).
Visit Your Bank
If you do not like to conduct business online, head to your bank. Banks are able to process your CRA payments, such as taxes and GST/HST/QST remittances.
Set up Pre-Authorized Debit
Having a pre-authorized debit structure in place ahead of a mail strike can give you peace of mind. Set this up when you file business taxes with EFILE, or through My Business Account.
Canada Post Outlet
This seems a little counterintuitive as it is Canada Post that is on strike, but Canada Post outlets can take CRA payments. There is a fee for this and you must have a QR code on your paperwork (or generate one online); however, this is a viable payment method to avoid late fees or payment default.
Stay Organized and Ahead of the Game
Whether or not a strike is looming, CRA does not excuse late or missing payments. To avoid being caught up in a strike, or simply missing a payment by to overlooking it, take some proactive steps.
My Business Account is a powerful tool that will help you stay on top of what is owing and what is paid out from CRA. Business owners can also see what payments are upcoming, and plan ahead to remit on time.
AF Accounting can Help
AF Accounting is here for small business owners. Accounting and bookkeeping are our focus, so we help you stay organized and compliant with CRA and Revenu Québec. Our cloud-based accounting means that a mail strike would not impact your payments or remittances. Contact us today to learn how AF Accounting helps your business get ahead with proven solutions.
Looking for more advice on how to stay compliant with CRA or Revenu Québec? Check out this article.