Pre-authorized debit help menu

What is pre-authorized debit?

Pre-authorized debit (PAD) is an online self-service payment option. Through this option, you agree to authorize the Canada Revenue Agency to withdraw a pre-determined payment amount directly from your bank account on specific date(s) to pay your taxes. Go to Pay by pre-authorized debit to get more information.

Pre-authorized debit main page

This page offers the following options:

Create a new pre-authorized debit (PAD) agreement

To create a PAD agreement:

  • Select the Create new agreement button.
  • Then select a Program account followed by a Payment allocation from the drop-down lists provided.
  • Complete the Agreement details page. The fields to be filled out will depend on the program account and payment allocation that you selected. Your banking information (branch, transit, and account number) is required.
  • Review and accept the Agreement details, Important information about pre-authorized debit, and the Terms and conditions on the Review and confirm information page. You will then have the option to manage your PAD agreement.

Note

This service allows you to create multiple PAD agreements.

Manage active pre-authorized debit (PAD) agreement(s)

To manage an active PAD agreement, you must first select the PAD agreement you want to manage from the Manage active agreements table on the main page of the application.

  • You will see only pre-existing PAD agreements associated with your CRA username and password.
  • Each PAD agreement is presented with a brief summary for quick referencing.
  • You can select only one PAD agreement at a time for detailed viewing or managing.
  • You can skip, modify, or cancel a payment only for active PAD agreements.
  • If no PAD agreements exist, nothing will be shown.

View inactive pre-authorized debit (PAD) agreement(s)

To view an inactive PAD agreement, you must select the View inactive agreements button on the main page of the application. This will bring you to the View inactive pre-authorized debit agreement page, where a table with inactive agreements will be shown.

  • Inactive PAD agreements will be displayed for a minimum of one year after they have become inactive.
  • If no inactive PAD agreements exist, nothing will be shown.

Program accounts and payment allocations

The following program accounts can be paid by pre-authorized debit. Only program accounts associated with your business number will be displayed.

Non-resident withholding tax – Part XIII

Select Non-resident withholding tax – Part XIII if you are a non-resident of Canada making tax payments for income you received from sources in Canada or if you are a payer or agent withholding and remitting Part XIII tax. The following payment allocations are available:

Regular remittance

  • Make a regular remittance of non-resident Part XIII tax.

Assessed arrears

  • Make a payment for an amount owing from your notice of (re)assessment.

For information about non-resident withholding tax (Part XIII), go to Part XIII tax.

Nova Scotia workers' compensation board (NSWCB)

Payments for any of the following are permitted:

Current

  • Make a payment for current source deductions for your account.

Amount owing

  • Make a payment for amounts owing on your account.

For information about the Nova Scotia workers' compensation board, go to NSWCB.

Corporation income tax (T2) (RC)

Payments for any of the following are permitted:

Interim / Instalment

  • Generally, corporations have to pay their taxes in instalments. Make an instalment payment, which is a partial payment of the total amount of tax payable for the year. For more information on interim / instalment payments, go to Paying instalments.

Note

The terms interim payments and instalment payments are interchangeable.

Balance due

  • Pay the balance of tax, which is the tax payable for the tax year after you have deducted the instalments already made for the year. For more information about paying your balance due, go to Paying your balance of corporation tax.

Amount owing

  • Pay the amount you owe, as shown on your notice of assessment / reassessment, on your statement of account / remittance, or in letters issued by the Canada Revenue Agency.

Goods and services tax/harmonized sales tax (GST/HST) (RT)

Payments for any of the following are permitted:

Interim / Instalment

  • Make an instalment payment, which is a periodic payment that registrants have to send us toward the net tax owing on their annual GST/HST return. For more information about interim / instalment payments, go to GST/HST instalment payments.

Note

The terms interim payments and instalment payments are interchangeable.

Balance due

Amount owing

  • Pay the amount you owe, as shown on your notice of assessment / reassessment, on your statement of account / remittance, or in letters issued by the Canada Revenue Agency.

Payroll source deductions (RP)

Payments for any of the following are permitted:

Regular remittance

  • Use if you are not an accelerated remitter and you are required to make payments once a month.

Quarterly remittance

  • Use if you are not an accelerated remitter and you are required to make payments quarterly.

Accelerated threshold 1

  • Use if you remit from $25,000 to $99,999 in monthly deductions.

Accelerated threshold 2

  • Use if your monthly payments are $100,000 or more.

For more information about the four payment allocations listed above, go to Remitter types and due dates.

Balance owing

  • Use if you are making a current, last, or previous-year payment for an unassessed outstanding balance (T4 difference, T4 amendment).

Pensionable and insurable earnings review (PIER)

Payment on filing

  • Make a payment of the amount owing when you file your information returns.

Arrears / penalty / interest remittance

  • Use if you are making an arrears / penalty / interest remittance payment for amounts previously assessed.

Excise duty (RD)

Payments for any of the following are permitted:

  • Balance due
    • Make a payment on the remainder of tax that you owe, when the payment is due before you file a return.
  • Amount owing
    • Pay the amount you owe, as shown on your notice of assessment / reassessment, on your statement of account / remittance, or in letters issued by the Canada Revenue Agency.

For more information on this program account, go to Excise duty.

Excise tax (RE)

Payments for any of the following are permitted:

Balance due

  • Make a payment on the remainder of tax that you owe, when the payment is due before you file a return.

Amount owing

  • Pay the amount you owe, as shown on your notice of assessment / reassessment, on your statement of account / remittance, or in letters issued by the Canada Revenue Agency.

For more information on this program account, go to Excise tax and special levies.

Excise tax on insurance premiums (RN)

Payments for any of the following are permitted:

Balance due

  • Make a payment on the remainder of tax that you owe, when the payment is due before you file a return.

Amount owing

  • Pay the amount you owe, as shown on your notice of assessment / reassessment, on your statement of account / remittance, or in letters issued by the Canada Revenue Agency.

For more information on this program account, go to Excise tax and special levies.

Air travellers security charge (ATSC) (RG)

Payments for any of the following are permitted:

Balance due

  • Make a payment on the remainder of tax that you owe, when the payment is due before you file a return.

Amount owing

  • Pay the amount you owe, as shown on your notice of assessment / reassessment, on your statement of account / remittance, or in letters issued by the Canada Revenue Agency.

For more information on this program account, go to Air travellers security charge.

Information returns (RZ)

Payments for any of the following are permitted:

Amount owing

  • Pay the amount you owe, as shown on your notice of assessment / reassessment, on your statement of account / remittance, or in letters issued by the Canada Revenue Agency.

For more information on this program account, go to Completing and filing information returns.

Softwood lumber products export charge (SL)

Payments for any of the following are permitted:

Balance due

  • Make a payment on the remainder of tax that you owe, when the payment is due before you file a return.

Amount owing

  • Pay the amount you owe, as shown on your notice of assessment / reassessment, on your statement of account / remittance, or in letters issued by the Canada Revenue Agency.

For more information on this program account, go to Softwood lumber products export charge.

Agreement details page

When entering the agreement details to create a pre-authorized debit (PAD) agreement:

  • All fields must be completed correctly.
  • All field errors will be highlighted and remain on the page until they are corrected.
  • After all fields are completed correctly, select the Continue button to advance to the next page.
  • The Back button will bring you to the Payment allocation page.
  • The Cancel button will bring you to the main page of the application.

The following fields may need to be completed, based on the payment type and allocation selected:

Non-resident account number – This field is only for non-resident withholding tax (Part XIII) PAD agreements. Enter the complete and valid number (for example, NRx123456). This number can be found on your non-resident information slips, remittance vouchers, or correspondence.

NSWCB account number – This field is only for Nova Scotia workers' compensation board PAD agreements. Enter the complete and valid number (for example, NW0001).

Gross payroll (Dollars only) – This field is only for payroll source deductions PAD agreements. The entry must be a dollar amount between 0 and 999,999,999, with no decimals or commas.

Total assessable payroll (Dollars only) – This field is only for Nova Scotia workers' compensation board PAD agreements. The entry must be a dollar amount between 0 and 999,999,999, with no decimals or commas.

Number of employees – This field is for payroll source deductions and Nova Scotia workers' compensation board PAD agreements. The entry must be a number between 0 and 999,999, with no commas.

Period-end – This field is required for certain payment types and helps us apply the payment to the proper tax period. Enter the date for the period-end you are paying in the format provided.

First payment date – This field is required for all payment types. The first payment date must be between five business days and one year from the current date. If the frequency selected is End of month, the first payment date must be the last day of the month.

Frequency – This field is required for all payment types. The following frequencies may be available to select, based on the payment type selected:

  • One time: Withdrawn on the date indicated
  • Weekly: Withdrawn every seven days, calculated from the first payment date
  • Bi-weekly: Withdrawn every fourteen days, calculated from the first payment date
  • Monthly: Withdrawn on the same date each month
  • End of month: Withdrawn on the last day of each month
  • Quarterly: Withdrawn on the same date every three months

Number of payments – This field is required for all payment types.

  • Entry must not create a PAD agreement lasting more than two calendar years.
  • Entry must be numeric (for example, 123).

Amount This field is required for all payment types.

  • You must enter an amount of at least $2.
  • Entry must be numeric (for example, 123).
  • Cents must be entered with a decimal, followed by two numbers.

Banking information – You must enter the following banking information accurately and in numeric format (for example, 123456789):

  • your five-digit bank branch number
  • your three-digit financial institution number
  • your bank account number

You can find this information on your bank's cheques (see the blank cheque coding example provided). You can also get the information from your financial institution.

Note

If you have previously entered banking information when creating a PAD agreement, this information will be shown; you can use it by selecting the Most recent banking information box. If you select this box, you will not be asked to enter new banking information.

Review and confirm information page

To complete this page, you must first:

  • review your pre-authorized debit (PAD) agreement details, to make sure all information is correct; and
  • read and understand the Terms and conditions and Important information about pre-authorized debit. Select the Authorization box and then select the Confirm button to create the PAD agreement.

If the information is incorrect or you want to change your selection, click on the Change information link.

If you do not want to continue, select the Cancel button. The Cancel button will remove previously entered information and return you to the Pre-authorized debit main page.

Pre-authorized debit agreement confirmation page

This page will show the pre-authorized debit (PAD) agreement confirmation. The confirmation contains all the details of your PAD agreement, the terms and conditions for your PAD agreement, and important information about your PAD agreement.

You have the option of selecting the Print or Save button to get a version of your confirmation that you can print or save to your computer.

This confirmation will be available in your Pre-authorized debit agreement history within 48 hours, and it will remain online for a minimum of one year after the PAD agreement is cancelled or expires. You will also be able to print and save the notification from there.

Manage active pre-authorized debit agreement page

On this page, you can perform four actions: view, modify, skip a payment in, or cancel your pre-authorized debit (PAD) agreement.

  • To view your PAD agreement, simply view the details posted on the page. If you would like details based on each transaction in your PAD agreement, select the View agreement history button.
  • To modify your PAD agreement, select the Modify button. For more information about modifying your PAD agreement, go to the Modify active pre-authorized debit agreement section.
  • To skip a payment in your PAD agreement, select the Skip payment button. For more information about skipping a payment in your PAD agreement, go to the Skip payment section.
  • To cancel your PAD agreement, select the Cancel agreement button. For more information about cancelling your PAD agreement, go to the Cancel agreement section.

Modify active pre-authorized debit agreement page

To modify an active pre-authorized debit (PAD) agreement:

  • All fields must be completed correctly.
  • All field errors will be highlighted and remain on the page until they are corrected.
  • Once all fields are completed correctly, select the Continue button to advance to the next page.
  • The Back button will bring you to the Manage active pre-authorized debit agreement page.

How to complete each field:

Payment type – This field cannot be modified. To change the payment type, you must cancel the PAD agreement and create a new one.

Non-resident account number – This field cannot be modified. To change a non-resident account number, you must cancel the PAD agreement and create a new one.

NSWCB account number – This field cannot be modified. To change a Nova Scotia workers' compensation board account number, you must cancel the PAD agreement and create a new one.

Gross payroll (Dollars only) – This field is only for payroll source deductions PAD agreements. The entry must be a dollar amount between 0 and 999,999,999, with no decimals or commas.

Total assessable payroll (Dollars only) – This field is only for Nova Scotia workers' compensation board PAD agreements. The entry must be a dollar amount between 0 and 999,999,999 with no decimals or commas.

Number of employees – This field is for payroll source deductions and Nova Scotia workers' compensation board PAD agreements. The entry must be a number between 0 and 999,999, with no commas.

Period-end – This field is required for certain payment types and helps us apply the payment to the proper tax period. Enter the date for the period-end you are paying in the format provided.

Next payment date – This field is required for all payment types. The next payment date must be between five business days and one year from the current date. If the frequency selected is End of month, the first payment date must be the last day of the month.

Frequency – This field cannot be modified. To change the frequency, you must cancel the PAD agreement and create a new one.

Payments remaining – This field is required for all payment types.

  • Entry must not create a PAD agreement lasting more than two calendar years.
  • Entry must be numeric (for example, 123).

Amount This field is required for all payment types.

  • You must enter an amount of at least $2.
  • Entry must be numeric (for example, 123).
  • Cents must be entered with a decimal, followed by two numbers.

Banking information – You must enter the following banking information accurately and in numeric format (for example, 123456789):

  • your five-digit bank branch number
  • your three-digit financial institution number
  • your bank account number

You can find this information on your bank's cheques (see the bank cheque coding example provided). You can also get the information from your financial institution.

Cancel pre-authorized debit agreement page

To cancel your pre-authorized debit (PAD) agreement:

  • The “Your agreement can be cancelled as of” date is determined by the five-business-day rule.
  • Select the Yes button to confirm the cancellation and advance to the next page.
  • The No button will bring you back to the Manage active pre-authorized debit agreement page.

Skip a payment page

To skip a payment in your pre-authorized debit (PAD) agreement:

  • The “Next payment you can skip” date is determined by the five-business-day rule.
  • Select the Yes button to skip the payment and advance to the next page.
  • The No button will bring you back to the Manage active pre-authorized debit agreement page.

Pre-authorized debit agreement history page

This page lets you view a history of your pre-authorized debit (PAD) agreement. If you need to access information that is not shown on this page, please Contact us.

Five-business-day rule for pre-authorized debit agreements

Create

Whether you're creating or managing a pre-authorized debit (PAD) agreement with the Canada Revenue Agency, all agreements have to follow the five-business-day rule. The five-business-day rule is based on the amount of time needed to process each payment within a PAD agreement.

When creating a PAD agreement, the first payment date you can enter must be five business days later. That date will be calculated by the system and shown when you enter the details for your PAD agreement. There are no exceptions to this rule. If pre-authorized debit is not the best option for you, you can view the other ways to Make a payment to the Canada Revenue Agency.

Note

PAD agreements created or managed from Monday to Friday, excluding holidays, before 6 p.m., Eastern time, will be processed for that business day; otherwise, they will be processed the next business day.

Manage (Cancel, Modify, Skip)

When managing your pre-authorized debit (PAD) agreement(s), the five-business-day rule will apply to these options:

  • Cancel an agreement
  • Modify an agreement
  • Skip a payment

For all these options, we will provide you with the next available payment date that can be managed.

If a payment is scheduled within the next five-business-day window, you will not be able to cancel or modify the payment. You can still modify or cancel the PAD agreement for any payments remaining. The payment being processed will be withdrawn, according to the original PAD agreement.

This rule also applies to skipping a payment. If a payment is being processed and is in the five-business-day window, it cannot be skipped. But if there are payments remaining in the PAD agreement (with the exception of the last payment), the subsequent payment can be skipped.

Example

On June 27, Tom logs into My Business Account and accesses the Pre-authorized debit service. He wants to modify his PAD agreement to change the amount being withdrawn from $100 to $200. His next payment is set to be withdrawn on June 29. When Tom tries to modify the PAD agreement, he is offered July 7 for his next payment.

Since the June 29 payment is already being processed and is within the five-business-day window, the next available date is being displayed. Tom cannot modify the June 29 payment, but he can change the amount in the remaining payments. To modify the June 29 payment, Tom should have submitted his request five business days earlier.

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