CRA Direct Deposit for Business

To help employers keep and re-hire workers amidst the challenges posed by the COVID-19 pandemic, the CRA is administering the Canada Emergency Wage Subsidy (CEWS).

The CRA requires employers to register for direct deposit in order to receive the benefit straight into their business payroll account. With only one-third of Canadian companies currently registered for CRA direct deposit, the CRA estimates it would need to send approximately 4.5 million cheques over the next four weeks, which is unsustainable. To ensure fast and secure payments, employers can now register business payroll accounts for direct deposit with the CRA through their financial institution.

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Direct Deposit Enrolment for Business



Overview

  • Prospera will soon be in a position to offer the CRA Direct Deposit for Business feature which will provide our business members - who have a business account that was opened on or before March 1, 2020 - with the ability to simply and securely submit their direct deposit enrolment information to the CRA. They can then receive CEWS payments from the CRA quickly and securely into their business payroll account.

  • Our CRA Direct Deposit for Business feature will currently enable only direct deposits in support of CEWS which will be paid into business payroll accounts. It is aimed at giving you fast access to CEWS, therefore will not apply to direct deposit requests for the corporation income tax refund and GST sales tax refund. Once enrolled, businesses will receive direct deposit of their Canada Emergency Wage Subsidy to the account at the FI that facilitated the enrolment.

  • To be eligible to enroll in CRA Direct Deposit for Business, you must have a valid 15-digit business number and a Payroll account (RP). In addition, the legal name of the business on file with us and your business owner details must match what the CRA has on file, or the direct deposit enrolment may not be successfully processed by CRA. To avoid any discrepancies which could result in rejection by the CRA, the owner of the business can complete the direct deposit registration and can fill in the optional fields for SIN # and DOB as these fields give CRA other criteria to do matching against. 

  • Enroling for CRA Direct Deposit for businesses does not register you for CEWS. You will need to apply separately through the Government of Canada’s application process. If you are approved for CEWS, registering for CRA Direct Deposit for Business through us will help you receive their funds faster.





FAQ



When can I access the CRA Direct Deposit for Business service through Prospera?
Prospera will soon be in a position to offer the CRA Direct Deposit for Business enrolment. Through this service, your business can simply and securely submit your direct deposit enrolment information to the CRA.

Please note: Applications for the CEWS benefit must be made directly through the CRA. Once you are approved for the CEWS benefit, registering for the CRA Direct Deposit for Business service helps ensure your CEWS payment from CRA is quickly and securely deposited into your business payroll account.


Who is eligible to enroll for CRA Direct Deposit for Business?
To be eligible to enrol, you must have a business account with Prospera that was opened on or before March 1, 2020. You must have a valid 15-digit business number and a Payroll account (RP). In addition, the legal name of the business on file with us and your business owner details must match what the CRA has on file, or the direct deposit enrolment may not be successfully processed by CRA. To avoid any discrepancies which could result in rejection by the CRA, the owner of the business can complete the direct deposit registration and can fill in the optional fields for SIN # and DOB as these fields give CRA other criteria to do matching against.

The following links provide further detail on eligibility:

What information will I have to provide when I sign up for CRA Direct Deposit for Business through Prospera?
Enrolment is completed using (where available) existing customer information on file at Prospera including: business name, owner name, 15-digit business number, SIN, and bank account info. Customer identity is verified without the customer having to log into the MyCRA website or contact the CRA directly.


What happens if the enrolment fails?
You can attempt to enrol again in direct deposit with your financial institution or via the CRA My Business Account.


What happens if the Business Number is not correctly formatted?
Our enrolment form will not allow for invalid characters to be inputted into the filed. The format will only allow 9 numbers, the letters Rr or Pp, and then 4 subsequent numbers.
I.e. : 123456789RP0001 or NNNNNNNNNrpNNNN. If an invalid character is entered, an error message will be displayed.

To avoid any discrepancies, which could result in rejection by the CRA, the owner of the business can complete the direct deposit registration and can fill in the optional fields for SIN # and DOB as these fields give CRA other criteria to do matching against.


What if I don’t see the updated bank account information for my business after 48 hours?
Contact the CRA at 1-800-959-5525.


How will the deposit show up in my account?
The deposits will show as being made by the Receiver General. The description on your statement will read "Federal Payment FED".


What CRA business payments are captured in the direct deposit enrolment through Prospera?
Our CRA Direct Deposit for Business enrolment feature will currently enable direct deposits in support of CEWS which will be paid into your business payroll account. It will not apply to direct deposit requests for the corporation income tax refund and GST sales tax refund at this time.


Can I have the payments go into my USD account?
No, the payments are paid in CAD and must be directed to a CAD account.


When can I apply for the Canada Emergency Wage Subsidy (CEWS)?
Starting April 27, 2020 eligible clients will be able to apply for CEWS through the Government of Canada. The CRA will collect applications throughout this week. As of May 4, the CRA will process applications through its automated verification system. As such, employers can apply at a time that’s convenient for them. All claims that are approved through the CRA automated verification process will be sent for payment on May 5, so that payments being made through direct deposit should begin to appear in employers’ accounts as of May 7.


What about businesses who are unable to bank online or through an app?
The CRA can still issue cheques for CRA business payments. For any questions related to your CEWS payments, please contact the CRA directly at 1-800-959-5525.


Does enroling for direct deposit for my business automatically sign me up for the Canada Emergency Wage Subsidy (CEWS)?
No, this sign up is only for choosing your method of receiving your CEWS payment.


I’m already signed up for direct deposit with the Canada Revenue Agency for my payroll account (RP). Do I need to enrol again?
No, you do not need to sign up again. The Canada Revenue Agency will use the account information that you have already provided for your direct deposit payments. You will however need to apply separately for the CEWS payment.


I’ve already signed up for CRA direct deposit with another bank/financial institution. If I sign up again, will it update what I have on file with the CRA?
Yes. The most recent enrolment you complete will become the account on file with the Canada Revenue Agency. Direct deposits for CEWS payments will only be made into one payroll account (RP), at one financial institution.


How will I receive my payment if it is $25 million or more?
If you are expecting a payment of $25 million or more, you will have to get your payment through the large value transfer system (LVTS). To do this, you have to be enrolled in direct deposit on your payroll account and be registered for the LVTS. If you are not already set up for LVTS, begin the registration process.