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What Can Happen When Your Canadian Payroll Calculator Lets You Down

Posted by Stacey Duggan

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Mar 14, 2014 9:05:00 AM

what can happen when your canadian payroll calculator lets you downWhen your Canadian payroll calculator lets you down, it can be a complete catastrophe, or a complete non-issue. It all depends on your knowledge, your experience, and the precautions you’ve taken. If you lack the right knowledge and experience, and haven’t taken any precautions, then the loss of your Canadian payroll calculator could cost you fines, back payments, and even criminal proceedings. A Canadian payroll calculator can be a useful tool but, like any tool, it can eventually break down. When that happens, you won’t be able to tell the CRA that your payroll calculator was out of commission. They don’t care why mistakes are made, they only care that you pay for your mistakes.

How a Canadian Payroll Calculator Can Let You Down

It’s unlikely that a Canadian payroll calculator will ever just stop working. More than likely, you’ll make a small error or oversight when entering numbers, and the calculator will have no way of letting you know that your numbers aren’t correct. You see, a calculator just crunches numbers. It doesn’t interpret laws or regulations, and it doesn’t assign worker classifications or check their tax status. All the calculator can do is take the numbers you give it, and provide you with an answer based on those numbers. If you make any mistakes along the way, the calculator will give you an incorrect answer without any indication that a mistake was made.

How You Can Avoid Making Mistakes (The Hard Way)

To avoid making mistakes when using a Canadian payroll calculator, you need an intimate knowledge of, and experience with, Canadian payroll laws. That knowledge comes only from years of payroll processing experience. That experience comes from years of working with and interpreting payroll laws and regulations. With time, money, and patience, you can get that knowledge and experience for yourself. Of course, that won’t leave much time for other tasks, like running a business.

How You Can Avoid Making Mistakes (The Easy Way)

As with most business related tasks, there is an easier, completely legitimate way to avoid problems with your payroll calculator. You can outsource your payroll calculations to a professional payroll service provider. A payroll service provider, like The Payroll Edge, employs teams of people who have the knowledge and experience to keep your payroll calculations free of errors. Their payroll services include everything from withholdings and remittances, to employment contracts and verification services. The Payroll Edge can handle as many or as few of your payroll and administrative tasks as necessary, freeing you to focus on your core competencies. You’ll also be able to focus on your business, free from worries about audits, fines, and back payments caused by small mistakes in your calculations.

Canadian Payroll Tax Deduction Calculator

Topics: Canadian Payroll, Canadian Payroll Calculator, Canadian Payroll Laws

How Good of a Canadian Payroll Calculator Are You?

Posted by Karen McMullen

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Mar 7, 2014 9:00:00 AM

How Good of a Canadian Payroll Calculator Are YouBeing a good Canadian payroll calculator is about more than just crunching numbers. There are a lot of different variables that can affect which payroll laws are applied, and when. Knowing and understanding those laws makes all the difference between being a good Canadian payroll calculator, and being another heavily fined business. If you decide to act as your own Canadian payroll calculator, then you assume the risk of any errors you may make. Considering the difficulty and complexity of Canadian payroll laws, the chances of making mistakes are very likely. Before you take on this risk for yourself and your business, you should be aware of some of the possible pitfalls.

Head-off Re-classification

Correct worker classification depends on a lot of different factors. That classification can change depending on when and where the job duties are performed, as well as by changes in the work environment. There are numerous laws, both federal and provincial, that can affect how a worker is classified in different situations. As a Canadian payroll calculator, it will be up to you to know which laws to apply, and when. If several laws seem to contradict each other, it will be up to you to determine which has priority. If you get it wrong, the fines and penalties will be on you.

Withholdings and Remittances

As a Canadian payroll calculator, you’ll need to calculate the necessary withholdings from each employee’s paycheque, and make the proper remittances to the relevant authorities. Like classifications, withholdings and remittances can change according to different circumstances. You’ll need to understand when and why these changes occur, so you can make changes as necessary. If you make any mistakes, there will be back payments and remittances on top of the fines and penalties.

The Devil is in the Details

Another of your tasks as a Canadian payroll calculator will be keeping up with every aspect of employee timekeeping. This will include accrued holiday pay, overtime payments, unemployment insurance, and more. Changes in worker status can affect any or all of their timekeeping requirements, so you’ll need to be on top of those changes as well. As with your other record keeping responsibilities, any mistakes will be costly. You could end up owing employees thousands of dollars in missed overtime or holiday payments, along with any fines you owe for missing those payments. Mistakes in this area can also open you up to civil suits and potential criminal proceedings.

A Risk Not Worth Taking

Trying to act as your own Canadian payroll calculator may save you a little money up front, but it exposes you to huge liabilities down the road. The law is so complex that few businesses take on the risk of handling compliance entirely on their own. Instead, they turn to payroll service providers like The Payroll Edge. The Payroll Edge provides a comprehensive suite of payroll and management services for Canadian and US businesses. Their services help ensure that your business is always in compliance with payroll laws, saving you the time and expense of audits, fines, and civil or criminal actions. With their help, you don’t have to worry about how good of a payroll calculator you are. 

Canadian Payroll Tax Deduction Calculator

Topics: Canadian Payroll, Canadian Payroll Regulations, Canadian Payroll Calculator

How to Avoid Costly Mistakes with a Canadian Payroll Calculator

Posted by Ray Gonder

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Feb 7, 2014 9:00:00 AM

How to Avoid Costly Mistakes with a Canadian Payroll CalculatorWhen dealing with Canadian tax withholdings and remittances, mistakes can cost you a fortune in fines and back payments. US-based businesses are more likely to make mistakes, as they usually aren’t as familiar with Canadian tax laws. A Canadian Payroll Calculator can help you spot the most obvious errors, and make sure that you’re withholding enough taxes from your employees’ paychecks. Using a Canadian Payroll Calculator will help you determine how much to withhold from standard employees in typical situations. However, since you will probably have some non-standard employees working in atypical situations, a Canadian Payroll Calculator can’t replace the advice of a professional payroll service.

Not for Every Employee in Every Situation

To give accurate results, a Canadian Payroll Calculator must be using accurate information. Typically, they use a standard algorithm, designed to fit the majority of employees. However, given the complexity of Canadian tax laws, and the wide variety of employee and job designations, there is no calculator that can foresee every possible scenario. To account for this, the person using the calculator must have a strong understanding of the law, and how it’s applied in the real world. Without that understanding, the results from the calculator won’t necessarily apply to every employee in every situation.

Guidance, not Advice

A Canadian Payroll Calculator shouldn’t be used in place of advice from an experienced professional. A calculator should typically be used to double-check results that you’ve already determined using the withholdings information provided by the Canadian Revenue Agency. Using the rules they provide, you can determine the withholdings for an employee, and then check for any discrepancies using a Canadian Payroll Calculator. If there are discrepancies, you know that there’s a problem with either your calculations, or how your employee is classified.

Checking Your Work

Of course, identifying where any errors exist requires you to know and understand Canadian tax laws. Without that knowledge, it will be impossible to find anything other than basic arithmetical errors in your tax withholdings. You’ll be looking for a needle in a haystack—without knowing what a needle looks like. The kind of knowledge required to do advanced error checking only comes from constant experience with Canadian tax laws. Unless you have the time to devote to gaining that experience, you’ll always be at risk for unseen errors. Considering how much those errors can cost you, it’s probably not worth the risk.

Seek Professional Help

To avoid potential fines and back payments, you should consider using a Canadian payroll service. These experienced professionals deal with Canadian tax law every day. They also deal with the people who are applying those laws in the real world. That combined experience gives them a deep understanding of the intricacies of Canadian tax laws. They can quickly and accurately calculate all of your withholdings and remittances, with little risk of under- or over-payments. They can save you money immediately thanks to their speed and accuracy, and in the future by avoiding audits and associated costs.

Canadian Payroll Tax Deduction Calculator

Topics: Payroll Processing, Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Canadian Payroll Deductions, Payroll Calculator, Canadian Payroll Calculator

Where to Find Professional Employer Organizations (PEOs) in Canada

Posted by Stacey Duggan

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Jan 31, 2014 9:00:00 AM

Where to Find Professional Employer Organizations PEOs in Canada2As a US-based business, you’re probably already familiar with the services a Professional Employer Organization (PEO) can offer. With their many benefits, it’s no surprise that PEOs are becoming increasingly popular in the States. For a US-based business wishing to hire Canadian workers to service their Canadian clients, the benefits of a Professional Employer Organization are even greater.

Not Finding What You’re Looking For?

If you’re looking for a Professional Employer Organization in Canada, you should be aware that they operate under a different name. In Canada, a PEO operates under the title of Employer of Record (EOR). An EOR offers the same services and benefits as a PEO, along with a number of services specific to businesses trying to establish a Canadian presence. For US-based businesses, these professional employers are especially helpful when trying to service clients north of the border but not looking to establish a bricks and mortar location in Canada.

Services for US-Based Businesses

When hiring in Canada, there are some major obstacles that must first be overcome. There’s the difference in pay structures, benefits, employment standards and of course the liability of not knowing how another country operates when it comes to employment. These obstacles are so confusing that many US businesses simply give up on their expansion plans. With the help of an EOR, you can realize your dream of a Canadian expansion without having to deal with any of these obstacles directly.

An EOR, like The Payroll Edge, can provide you with all of the services you need to hire your Canadian staff all the while being completely legal and in compliance with Canadian employment law. Since they already operate in Canada, they already have all of the necessary infrastructure and accounts to begin hiring and paying your Canadian employees. Setting all of this up on your own is an expensive and time-consuming process that leaves a lot of room for errors that will add to the time and cost of your expansion.

With an established Canadian EOR, you don’t have to worry about any of the following;

  • Creating a physical presence for your business in Canada
  • Establishing all necessary government accounts
  • Setting up banking and insurance accounts for your business
  • Ensuring workplace safety and continued compliance
  • Providing government mandated training for all Canadian employees
  • Withholding and remitting all necessary taxes and fees from employees’ payroll
  • Calculating, distributing, and rectifying payments to employees and contractors
  • Handling interactions with multiple layers of government bureaucracy

As the employer of record for your Canadian workforce, they take complete care of all of the above allowing you to service your Canadian clients seamlessly. 

Experience Trumps Perseverance

As a business owner, you probably have a “can-do” attitude toward running your company. While that attitude is admirable, it can be misplaced if it negatively impacts your business. Trying to establish a Canadian presence on your own opens you up to a lot of costly mistakes. If you make any mistakes during the expansion, it will cost time and money to fix them. If you make any mistakes after the expansion, you may be on the hook for fines, back payments, and even criminal actions. With the experienced, professional help of an EOR, you can have your Canadian workforce without the red tape of having a business presence north of the border.

A Canadian EOR is where you will find a Professional Employer Organization in Canada.

12 Things an American Company Looking to Hire a Worker in Canada Needs to Know

Topics: Outsourced Payroll Service, Canadian Payroll, EOR, Professional Employer Organization, PEO, U.S. Companies operating in Canada, Canadian Payroll Calculator

Why a Canadian Payroll Calculator Can Be Your Best Friend

Posted by Stacey Duggan

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Jan 28, 2014 10:25:00 AM

describe the imageWhen trying to navigate the complexities of Canadian payroll laws, it’s good to have a friend on your side. A Canadian payroll calculator can be that friend. For US-based businesses, Canadian laws can be especially cumbersome and difficult to overcome. Like a good friend, a Canadian payroll calculator can offer advice, guidance, and encouragement. That advice and guidance can keep you from making costly mistakes, while encouragement can keep you going even when complying with the laws seems impossible. There are a lot of tools you can use to ease your Canadian expansion, a Canadian payroll calculator is one that will make it feel like you have a trusted friend in your corner.

Advice When You Need It

Sometimes, you just need to know if you’re on the right track. A Canadian payroll calculator can help you determine if your withholding calculations are near the mark. By entering some basic employee information, you can get an overview of the most typical tax situations in different provinces. While it can’t give you information on every possible scenario, a Canadian payroll calculator can give you a good starting point for the most common tax situations. Best of all, like a trusted friend, a payroll calculator is available whenever you need it. You don’t have to wait for business hours, or make an appointment—just open the calculator and start getting help.

An Ounce of Prevention

Like a good friend, a Canadian payroll calculator can help keep you from becoming your own worst enemy. If the advice it gives varies wildly from your own calculations, then you should double-check your numbers. It’s possible that you’re entering erroneous information, or misinterpreting some aspect of the law. If you ignore the advice and stick to your own numbers, you may be opening yourself up for future legal consequences. While the calculator won’t be right in every instance, broad discrepancies should be thoroughly investigated. If you can’t decide between your numbers, and the numbers the calculator gives you, then it’s time to consult a professional.

In Over Your Head

A good friend will tell you when it’s time to talk to an expert. If a Canadian payroll calculator is consistently showing that your numbers are off, that’s an indication that it’s time to get professional help. There are a lot of complexities to Canadian payroll law, and it’s possible that you’re missing something important. The calculator has no way of knowing if it’s a worker classification problem, a job-site location issue, or a simple arithmetical error. All it can do is take the information you give it, and provide its best guess based on the most common regulations. For anything beyond that, you need to talk to a payroll professional.

In this Case, Good Friends are Easy to Find

Fortunately, it’s easy to find other trusted friends for your corner. A professional payroll service, like The Payroll Edge, can handle all of your Canadian payroll needs for you. They have a highly-trained, highly-experienced staff of payroll professionals. With their help, you’ll speed up your payroll process, while also minimizing the chances of an audit or penalties. Using a professional payroll service takes all of the guesswork out of handling your payroll, while also freeing up your staff to handle other tasks. While a Canadian payroll calculator can help you do it yourself, a payroll service provider can do it for you.

Canadian Payroll Tax Deduction Calculator

Topics: Payroll Service Provider, Canadian Payroll, Canadian Payroll Service, Best Payroll Calculator, Payroll Calculator, CRA, Canadian Payroll Calculator, Payroll Tax Laws in Canada, Full Service Payroll Provider

What’s The Best Canadian Payroll Calculator?

Posted by Stacey Duggan

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Jan 17, 2014 1:40:00 PM

What’s The Best Canadian Payroll CalculatorLike a personal income tax calculator, a Canadian Payroll Calculator, like the one here can be a handy tool for determining if you’re on the right track with exemptions and withholdings. However, like a personal tax calculator, a Canadian Payroll Calculator is no substitute for the assistance of an experienced professional. If an online calculator could replicate professional experience, there would be no more need for CPAs, accountants, or tax attorneys. As things stand, calculators are limited by the knowledge and experience of the person using them. If you make an incorrect entry, or don’t fully understand how to apply the thousands of different rules and laws, then the output will be inaccurate. With personal taxes, this could result in an audit, fines, and back payments of thousands of dollars. When handling payroll for dozens or hundreds of employees, the costs could increase exponentially.

No Substitute for Experience

Let’s face it – payroll laws are complicated, no matter what side of the US-Canada border you’re on. If you happen to operate on both sides, then the complications are doubled. Payroll professionals spend years learning all of the intricacies of the law, and even that robust knowledge can’t prepare them for everything. When new laws are adopted, there’s no way for the authors to foresee every possible situation. When unique situations arise, applying the law correctly requires experience with previous, similar, situations. You can’t get that experience from just an online Canadian payroll calculator.

Payroll professionals handle every conceivable situation, week in, and week out. Every day is spent gaining more experience in the application of payroll regulations. While you or your payroll department may spend a few hours each week on payroll, payroll providers do it every single day. This level of experience allows them to quickly and accurately handle the most complex payroll needs.

Get Additional Value from A Payroll Provider

For US businesses operating in Canada, payroll regulations are just one of many day-to-day issues that must be dealt with. Maintaining a physical business presence, government accounts, insurance, and workplace compliance are a few more. Trying to manage the legal requirements of a business on both sides of the border can tax your resources and exhaust your staff. And, if you make any mistakes, the costs can quickly offset any profits you’ve enjoyed. No Canadian Payroll Calculator can tell you if you're handling your legal compliance correctly.

Payroll service providers in Canada also operate as Employers of Record (EOR). Performing the same functions as a Professional Employer Organization (PEO) in the US, an EOR makes it easy to manage your business from a distance. Instead of paying to set up your entire business organization north of the border, you pay the EOR, which already has all the business resources you need in place. Instead of spending your valuable time jumping through legal hoops and dealing with multiple layers of bureaucracy, you actually spend your time running your business. The EOR has the expertise and experience to handle all of the legal requirements, while you focus on the things that make your business successful.

Canadian Payroll Tax Deduction Calculator

Topics: Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Canadian Payroll Deductions, Payroll Tax in Canada, Canadian Payroll Regulations, Employer of Record, Payroll Calculator, CRA, CRA Payroll Tax, Canadian Payroll Calculator

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