enfr

Pre-authorized debit (PAD)

Updated: 2017-02-16

The Pre-Authorized Debit (PAD) web service offers preparers an electronic method to submit a payment to the CRA on behalf of a taxpayer. Use it instead of printing the T7DR(A) which requires your client go to their bank to make a payment. 

The service is available for paying an amount owing on current-year T1 tax returns.  It is not to be used to pay any other amount due to CRA, such as a balance due on prior year returns.

You can use PAD to make multiple payments for a taxpayer; however, only one request can be active at a time. You cannot make another request until the payment date of the active request has passed. Any attempt to do otherwise will generate an error message.

EFILE number and password

To electronically file, you must have an EFILE number and password issued by the Canada Revenue Agency (CRA): 

The registration or renewal process includes a suitability screening which process can take up to a month to complete. This process may take up to 30 days. To allow enough time for the review of your application before the filing season starts, we encourage you to renew your application as soon as possible.

EFILE transmission options

Enter the CRA EFILE number and password in TaxCycle options:

  1. If you have a file open, go to File menu, then click Options. To open Options from the Start screen, click Options in the blue bar on the left side. (You can also access these EFILE options any time by clicking on the wrench icon in the Transmit sidebar.)
  2. On the left side of the screen, expand Transmission and then click on EFILE Accounts.
  3. Enter your CRA EFILE Number and EFILE Password.
  4. Click OK to save the options.

2018-options-efile-accounts

Complete the required fields in Part C of the T183

Balance due message in the Transmit sidebar

The CRA requires that a taxpayer sign the appropriate section on the T183 Information Return for Electronic Filing of an Individual's Income Tax and Benefit Return before a preparer can set up a pre-authorized debit on his/her behalf. Learn more about completing this form in the T183 form help topic.

TaxCycle helps you identify taxpayers eligible for PAD so you can offer this service to them:

  1. When a taxpayer has an outstanding balance on their tax return, TaxCycle displays a review message suggesting making a PAD request in the Pre-Authorized Debit (PAD) box in the Transmit sidebar.
  2. This message also appears in the Review sidebar, and in the Amount field in Part C of the T183.
  3. Click the link to Enter the balance due from the return. The amount is entered in the field, but you can still edit it. The taxpayer can choose to pay different amount (less or more) if he/she prefers.
    Enter the amount owing on the return
  4. Enter the withdrawal date, which must be at least five business days in the future but cannot be over a year in the future. TaxCycle includes a Quick Fix message to help you enter a valid date.
  5. Carefully enter the taxpayer's banking details. Errors may delay the request.
  6. Enter the signing date. A review message gives you a quick option to enter today's date.

Banking details on the T183

 

What to do if a client declines PAD

Not all of your clients will want to use the PAD service. If one declines, you can indicate this choice on the T183:

  1. Check the not interested box in the PAD section of the T183.
  2. Or click the Quick Fix link in the review message.
    pad-not-interested636228732462293971
  3. The PAD box in the Transmit sidebar will also show that the client opted out.
    Transmit sidebar with the opt out.

Confirm signature in Part C of the T183

By default, TaxCycle requires you confirm the taxpayer has signed Part C of the T183 before you can transmit the PAD request. Do this from the transmit sidebar:

  1. Confirm signature of the T183Click Print the T183 link (or Print again if you previously printed it) to print the form on whatever printer is configured for single-form printing. This opens the Print/Generate forms dialog box, where you can change the printer/output settings. From this dialog box, click the Print or Generate button to print/PDF the form. (Read the Print/PDF a single form help topic to learn more about the options available from this box.) 
  2. TaxCycle records the date and the name of the person who printed the form.
  3. Once you have a signed T183 on file, click the Confirm signature link. TaxCycle records the signing date and the name of the person who confirmed the signature.

It is very important that you keep this signed form in your files should the CRA ask for it. They regularly check with preparers. However, you can disable the signature confirmation step. This skips the confirmation step, but will still see links to print and optionally log the T183 signature before transmitting. To learn how to do this, scroll to the bottom of this page and read the section on "Disable signature confirmation."

Transmit PAD now

Transmit a PAD request

  1. Once you confirm the signature, the request is Ready to transmit
  2. Click the Transmit Now! link to begin the transmission.

You can also transmit PAD requests as the same time as you EFILE using Transmit family or Transmit multiple. Learn how in the Transmit family help topic and the Transmit multiple help topic.

Successful transmission results

Successful PAD transmission

If a PAD transmission is successful, you will see:

  1. The words Transmission successful in green text and green happy face. This is the same symbol that appears in the Client Manager for successful transmission, and it also appears (white on blue) in the blue bar at the bottom of the window of any open tax return, so you can quickly see the current status.
  2. The box also shows the Confirmation number for future reference. 
  3. Any messages returned from the CRA appear in this box. They begin with the number. 
  4. Click the Print the Client PAD Receipt link to give a copy of this information to your client.
  5. Click the PAD Results link to view the worksheet which contains a full list of the results from all PAD transmission attempts.
  6. If you wish to transmit a new PAD request, click Dismiss all CRA messages and start again. Please be aware, that after successfully transmitting a PAD request, you cannot make another request until the payment date has passed. Any attempt will generate an error message. 

Rejected transmission

pad-rejected

If a PAD transmission is rejected by the CRA due to errors, you will see:

  1. The words Transmission rejected and a red sad face. This is the same symbol that appears in the Client Manager for failed transmissions, and it also appears (white on blue) in the blue bar at the bottom of the window of any open tax return, so you can quickly see the current status.
  2. Any error messages received from the CRA also appear in this box, starting with the error number. This number may be useful if you need to contact the CRA regarding an error.
  3. The longer error description usually contains information on what went wrong with the transmission, so you can work to correct it.
  4. Click the PAD Results link to view the worksheet which contains a full list of the results from all transmission attempts.
  5. When you have resolved the issue, click Dismiss all CRA messages and start again to re-transmit. 

PAD results worksheet

The PAD Results worksheet lists the results of  any attempts to electronically submit a PAD request. 

Regardless of a successful or failed transmission, TaxCycle records the time and the result of the transmission, so you always have a complete record of transmission attempts and returned messages, even if you have to retransmit the return.

Failed connection to the Internet

Internet connectivity issues

Transmissions will fail if your Internet connection isn't working properly. If this happens, you will see (the following items and screen capture apply to all transmission types, not just T1 EFILE):

  1. The words Transmission failed and two computers with red dots between them. This means that TaxCycle could not connect with the CRA system and no attempt at filing the return was made.
  2. Click the Diagnose Internet connectivity link to see whether your Internet connection is working. 
  3. TaxCycle will run a check on your Internet connection and display the results.
  4. The results of this transmission attempt are also recorded on the EFILE Results (or T1013 Results, etc.) worksheet. Click the link to open the worksheet.
  5. When your Internet connection is working again, click Dismiss error(s) and retry to try the transmission again. 

Transmission history

No matter what type of transmission you make (EFILE, ReFILE, PAD, T1135, etc.), each transmission attempt is recorded in the file history:

  1. Go to the File menu, then click on Info
  2. Click on History
  3. Find the record of the transmission in the list.
  4. Click the first save button (the one with the lightning bolt) to save a copy of the XML file that was transmitted to the CRA.
  5. Click the second save button (the one with the green arrow) to save a copy of the response sent back from the CRA.
  6. TaxCycle also updates the workflow information for the taxpayer. (See the Workflow groups and tasks help topic.)

efile-history


t183-print-instructions

How to avoid printing the second page of the T183

The second page of the T183 contains instructions for the form. Many preparers prefer not to print this second page. 

Regardless of how or when you choose to print the T183 (as part of a print set, as a single form, etc.), you can easily exclude this second page from printing when configuring your printer/output. For example, on this single form print box:

  1. Clear the Print instructions check box.
  2. Click the Save these settings for T183 link to have them available next time you print.

TaxCycle will only print the first page of the T183.


Default the PAD selection to "not interested"

A New File option allows you to default the Pre-Authorized Debit (PAD) field on the T183 to "not interested". To set this option:

  1. From the Start screen, click Options in the blue bar on the left side. If you have a file open, go to the File menu, then click Options
  2. On the left, expand T1/TP1 and click on New File to apply the settings to all years. To set different options for a particular year, expand the section and click on a year.
  3. On the right, scroll down to the section for T183 Default values.
  4. Select Taxpayer does not wish to use Pre-Authorized Debit.
  5. The not interested box in the PAD section of the T183 will be checked by default on new files, whether blank or carried forward. If this option is different than what is set on the form, a review message appears in any existing files.

PAD new file option

Disable PAD transmissions entirely

If you do not wish to arrange pre-authorized debits for your clients, you can disable PAD transmissions from TaxCycle entirely in options:

  1. If you have a file open, go to File menu, then click Options. To open Options from the Start screen, click Options in the blue bar on the left side. (You can also access these options any time by clicking on the wrench icon in the Transmit sidebar.)
  2. On the left side of the screen, expand Transmission and then click on Workflow.
  3. On the right-hand side of the window, scroll to the table. In the row for Pre-Authorized Debit (PAD) transmissions, clear the check box under the Can Transmit column. This hides the PAD box from the Transmit sidebar and any related review messages.

Disable PAD transmission from options


Disable signature confirmation

The CRA and Revenu Québec expect a signed T183, TP1000, T1013, T1135, etc. before you transmit, but you are not required to log the signature confirmation in TaxCycle if your practice has another way of tracking this information. You can disable the signature confirmation step in options.

  1. If you have a file open, go to File menu, then click Options. To open Options from the Start screen, click Options in the blue bar on the left side. (You can also access these options any time by clicking on the wrench icon in the Transmit sidebar.)
  2. On the left side of the screen, expand Transmission and then click on Workflow.
  3. On the right-hand side of the window, scroll to the table. In the row for the transmission type you require (for example, T1013 or T1 EFILE), clear the check box under the Documents Signed column.

2018-options-transmission-workflow-signature