Using direct deposit is the fastest and most secure way to receive funds from the Canada Revenue Agency (CRA). Use it to conveniently and easily get any CRA refund — and to receive your COVID-19 federal support. The CRA provides an FAQ here addressing common questions about security, and how the system works.
Note that some COVID-19 benefit programs require that you have direct deposit. This tipsheet will help you receive your money! We will orient you to CRA online accounts and help you move your CRA relationship to the cloud.
Individuals, businesses, nonprofits and charities will find step by step instructions below.
Need help? Contact us at info@youngassociates.ca.
For those who’d rather DIY, here’s how.
CRA accounts for individuals and organizations
It’s helpful to understand how CRA has organized access to its various tax programs.
If you’re an individual, it’s to your advantage to set up My Account. This gives you access to your personal income tax account and individual benefit programs such as the GST/HST Credit. COVID-19 benefits such as the Canadian Emergency Response Benefit can be direct-deposited to individuals through My Account. Individuals have the choice of setting up the benefit by phone and receiving a cheque in the mail.
Organizations need My Business Account. It provides access to payroll accounts, HST, T3010s, corporation income tax, and other CRA programs related to businesses, nonprofits and charities. COVID-19 benefits such as the Canadian Emergency Wage Subsidy will be direct-deposited to your bank using the information provided to the CRA through My Business Account.
Setting up direct deposit on your CRA accounts
You can gain access to the accounts that you own. Just like setting up online banking, accessing your CRA account involves security procedures to keep your data and your money safe.
Individuals can set up access for their CRA My Account. Individuals may appoint a tax preparer or accountant to act on their behalf — but only the individual who owns the account can set up direct deposit.
Business owners can set up access for their CRA My Business Account. Businesses may appoint a bookkeeper, accountant or auditor to act on their behalf — but only the business owner can set up direct deposit.
Nonprofits and charities are a special case, because there are no owners. Rather, these organizations are governed by boards of directors. Therefore, individuals who have authority to deal with the account need to set up access to the organization’s My Business Account through Represent A Client. Only individuals with top-level access (Level 3) can set up direct deposit.
We explain the process of accessing a nonprofit’s or charity’s CRA account, step by step, in plain language, here.
For information about how to set up all of these account types, please see this page on the Government of Canada website.
What you’ll need before enrolling for direct deposit
Individuals will need:
A bank account with a Canadian financial institution
A void cheque that indicates:
the name of your financial institution
your bank account number
the branch number (also called the "transit number" — 5 digits)
the institution number of your financial institution (3 digits)
Nonprofits, charities and businesses will require all of the above items, as well as:
Your 9-digit CRA business number
The proper authority to modify the account: usually an owner, partner, director or an individual with Level 3 access
What if I don’t have a cheque?
If you do not have access to a void cheque, you can find your account information through your online banking account. If neither of those is accessible to you, please call your bank directly.
How to Complete your Direct Deposit Setup:
Individuals can phone the CRA to arrange for direct deposit, or log into My Account. In the “related services” section, navigate to “Arrange my direct deposit” and follow the instructions.
Business owners cannot set up direct deposit by phone. The only way is to log into My Business Account. In the “related services” section, navigate to “Arrange my direct deposit” and follow the instructions.
Charities and nonprofits need an individual with Level 3 access to complete the process online through their CRA Rep A Client account. To do so:
Log into CRA Rep A Client
Enter the Business Number (BN) of the account you’d like to access
If you get an error message, make sure you are set up as a representative for your organization using these step by step instructions.
Find the organization’s “Business Profile” link and click to view and edit information
Under the direct deposit section, edit and follow the steps to set up direct deposit using your bank account information
How Young Associates can assist
A consultation with us may make all the difference to your comfort level and confidence that your accounting system is up to the challenge of the pandemic.
We can help you find the correct information to set up your CRA cloud access and walk you through the process to minimize frustration and ensure that your account and direct deposit arrangements are properly completed.
We’d also be happy to give you a quote for full-service bookkeeping.
We work on the basis of fixed price agreements, so you’ll know going in how much our work will cost — and we always offer a money-back guarantee: if you’re not completely delighted with our service, we will, at your option, either refund the price or accept a portion of said price that reflects your level of satisfaction.
Contact us: info@youngassociates.ca.
This tip sheet was created by the Young Associates team based on the best information available to us as of the date of posting.
Although every effort has been made to provide complete and accurate information, Young Associates makes no warranties, express or implied, or representations as to the accuracy of content in this tip sheet. Young Associates assumes no liability or responsibility for any error or omissions in the information contained in the tip sheet.
Founded in 1993, Young Associates provides bookkeeping and financial management services in the charitable sector, with a focus on arts and culture. Young Associates also provides consulting services in the areas of data management, business planning and strategic planning. Heather Young published Finance for the Arts in Canada (2005, 2020), a textbook and self-study guide on accounting and financial management for not-for-profit arts organizations.
