Home Blog

Blog

How to Stay On-Top of Changing CRA Payroll Tax Rules

Posted by Stacey Jones

|

Aug 4, 2014 9:30:00 AM

how to stay on top of changing cra payroll tax rulesChanging CRA payroll tax rules are a fact of doing business in Canada. These changes occur on at least an annual basis, with the potential for numerous other changes throughout the year. Changing CRA payroll tax rules can come about as the result of legislation, court cases, provincial changes, and even individual interpretations of different bureaucrats. Keeping up with changing CRA payroll tax rules is the responsibility of the individual business owner, and any penalties for mistakes will fall on them. There are a few ways to keep up with changing CRA payroll tax rules, some of which are easier than others.

Become a Payroll Specialist

If you have the time, money, and energy, you can take all of the necessary classes to become a payroll specialist yourself. It takes years of education, followed by years of experience to master Canadian payroll laws. Once you have the education and experience, you'll still need continuing education classes to keep up with recent and upcoming changes. All of this effort will take your attention away from your business, but you'll have a bright future as a payroll expert.

Learn as You Go

Another method to keep up with changing CRA payroll tax rules is by learning as you go. You can try to keep up with all of the changes while still maintaining all of your other business responsibilities. You'll pay for any mistakes you make along the way, but that should help motivate you to learn faster. The CRA will be happy to explain your errors to you during administrative hearings and, potentially, court cases.

In-House Help

One popular method managing changing CRA payroll tax rules is to hire an in-house payroll specialist. You'll need to pay for the latest software and training they need to do their job, along with continuing education classes and other expenses. Keeping up with the changing rules is a full-time job, so your payroll specialist won't be much help in managing other aspects of your business. It's truly a single-use position, and one with little margin for error.

Outsource Payroll Service Provider

If you're looking for a low-cost, no-hassle solution with little potential for errors, then a payroll service provider is your best option. Your account will be handled by a team of payroll experts who already have all of the necessary education, training, and experience. As an added benefit, you'll be sharing the costs of software and continuing education with all of their other clients--so you don't have a large capital investment in your payroll service.

To stay in business, payroll service providers must be up to date on the latest changes, knowledgeable about future changes, and aware of any differing interpretations. This in depth experience in all areas of payroll legislation is what sets them apart from any in-house payroll experts.

Canadian Payroll Tax Deduction Calculator

Topics: CRA Payroll Tax

Stacey Jones

Subscribe to Email Updates

Recent Posts

sidebar-cta-12-differences-to-expect-when-expanding-into-canada

Posts by Topic

see all