Simon Says: Open Your HST, Payroll, and T5 (RZ) Accounts with CRA

Jan 27

When you start or grow a business in Canada, registering the proper tax accounts with the Canada Revenue Agency (CRA) is a critical first step. Most registrations can be completed online in minutes using Business Registration Online (BRO) through your CRA account. Below is a quick guide to help you get it done correctly.

Step 1: Log In to Your CRA Online Account
Log in to:

CRA My Account (sole proprietors), or
CRA My Business Account (corporations)

From the main menu, select “Register for a business number or CRA program account” or “Add a program account.”

Step 2: Use Business Registration Online (BRO), BRO allows you to add CRA program accounts under your existing Business Number (BN) without submitting paper forms.

Step 3: Register the Accounts You Need HST (RT) Account
You generally need to register if:

Your taxable revenues exceed $30,000 over 12 months, or
You voluntarily register to recover HST paid on expenses (ITCs)

Payroll (RP) Account
Required if your business:

Pays salaries, wages, bonuses, or taxable benefits
Must remit CPP, EI, and income tax deductions

T5 (RZ) Information Return Account — Corporations

T5 accounts are primarily for corporations.

They are required when a corporation pays:

Dividends to shareholders
Shareholder loan interest
Certain investment or income payments

You must have an RZ account open before issuing T5 slips.

Step 4: Enter Business Details
CRA will ask for:

Business activity description
Start dates for each account
Payroll frequency (if applicable)
Contact and mailing information

Once submitted, accounts are typically active immediately.

Step 5: Ongoing Compliance
After registration, you are responsible for:

Filing HST returns
Running payroll and remitting deductions
Filing annual T5 slips and summaries (corporations)

All filings and payments are managed through CRA My Business Account.

Common Issues We See

Registering accounts too late
Using incorrect effective dates
Issuing dividends without a T5 (RZ) account
Assuming CRA registrations happen automatically

These errors often lead to penalties and interest.

Need Help?

Registering accounts is just the beginning. Choosing the right accounts, correct dates, and staying compliant is where professional advice matters. If you’re unsure what applies to your business—or want it set up properly from day one, Ottawa Valley Accounting Professional Corporation (OVAPC) can help.