Understanding Business Numbers and CRA Program Accounts

The terminology around CRA business registration can be confusing because a Business Number and a CRA program account are related but are not the same thing. Understanding the structure makes tax and payroll paperwork much easier to follow.

The Business Number identifies the business

A Business Number, commonly called a BN, is a nine-digit identifier used in dealings with government programs. Think of those nine digits as the core identifier.

Program accounts can then be associated with that Business Number for particular tax or administrative purposes.

Program accounts identify the program

CRA program accounts add letters and a reference number to the Business Number. Different program types are used for different obligations.

For example, GST/HST and payroll are separate programs. A business involved in both does not treat them as one interchangeable account simply because they share the same nine-digit BN.

RT, RP and RC mean different things

Common CRA program identifiers include RT for GST/HST, RP for payroll deductions and RC for corporation income tax. Other program identifiers exist for other activities.

The program identifier matters when making payments or communicating with CRA. Sending money to the wrong program account can create unnecessary reconciliation work even when the money reached CRA.

A sole proprietor may not need every account

Someone beginning a small unincorporated business should not assume they need to open every possible CRA program account. The accounts required depend on what the business actually does.

A sole proprietor with no employees and no requirement to register for GST/HST can have different CRA needs from an incorporated employer importing commercial goods.

GST registration can create an RT account

When a business registers for GST/HST, its GST/HST program account becomes the account used for returns, remittances and related CRA administration.

Keep the effective registration date in the business records. That date matters when determining when GST/HST collection obligations begin.

Hiring can create a payroll account

An employer generally needs to deal with payroll deductions such as income tax, Canada Pension Plan contributions and Employment Insurance premiums where applicable. The payroll program account is used for those employer remittances and reporting obligations.

Payroll money should never be treated casually as ordinary operating cash. Amounts withheld from employees and employer amounts due to CRA need to be tracked and remitted correctly.

Corporations have their own income-tax administration

A corporation is a separate taxpayer and generally files a corporate income-tax return. This is different from a sole proprietor reporting business income on an individual return.

Keep identifiers securely but accessibly

Maintain an internal record of the legal business name, Business Number, each active program account, effective registration dates and filing frequencies. Give sensitive tax information only to people who genuinely need it.

When paying CRA, verify the program and period before sending the payment. Many administrative headaches begin with a correct amount being applied to the wrong place.

The simplest mental model

Think of the nine-digit Business Number as the business identifier and the program account as the specific CRA relationship attached to it. Once that distinction is clear, much of the terminology becomes easier to understand.

Sources & Further Reading

Reviewed: September 2026

This article provides general educational information and is not legal, tax, accounting or financial advice. Requirements can change and individual circumstances differ. Confirm current requirements with the appropriate government authority or qualified professional.

The PureFarmFresh approach

Small business information should make it easier to understand the system, not make ordinary business owners feel they need to become experts in every regulation. We explain the practical framework and point to primary sources so you can decide what applies to your business.