When it comes to understanding Canadian payroll, your first instinct may be to enrol in a payroll class to help your payroll and HR department learn the specifics. For those companies outside of Canada, this search is in effort to understand foreign payroll compliance and is often handed over to someone hesitant to learn a new set of laws when they are already comfortable with their own.
Canadian rules and regulations when it comes to paying an employee can be vastly different, especially when compared to a country such as the United States. These differences can exert a level of frustration on the payroll or HR person who is already schooled in one set of legislative compliance.
When it comes to choosing a Canadian payroll class ensure that part of the curriculum covers the following:
- Federal payroll taxes including the Canada Pension Plan, Employment Insurance and Worker’s Compensation.
- The additional provincial payroll taxes as they vary from province to province (ensure the class covers the province that most interests you as many payroll classes will avoid Quebec due to its complicated nature)
- Employee and Employer deductions and the remittance schedules assigned to each tax account.
- Employment standards when it comes to overtime, statutory holiday pay and vacation pay and a section on how these vary from province to province as well.
Not only should the above information be covered in a Canadian payroll class but the payroll and HR department need to be aware of the over 1700 rules and regulations when it comes to the Employment Standards Act which also varies from province to province.
Ensure that the Canadian payroll class you register your in house payroll person includes information on:
- Health & Safety and a Return to Work program should your worker be injured.
- Termination and pay in lieu of notice. Note: there is no ‘At Will’ employment in Canada.
- How to properly compose an employment contract ensuring that all clauses meet employment minimums.
What are the chances that not only will the Canadian payroll class offer all of the above, but that your payroll and HR person taking the class will retain all of the information? How will they keep up to date on the ever-evolving employment regulations and changes to tax law? Most likely the Canadian payroll class will offer nothing more than an overview of the functions and processes of paying an employee
What outsourcing your Canadian payroll to The Payroll Edge will bring:
- Complete compliance when it comes to calculating payroll taxation.
- Correct, on time remittances with all government bodies in every province.
- Employment standards expertise ensuring you meet your due diligence.
- Certified experts who understand the law and keep up to date on its changes.
- The freedom to focus on your business.
Canadian payroll processing doesn’t have to be complicated and you don’t have to take a new field of study to get it done. The Payroll Edge is a Canadian based payroll processing company specializing in helping American and foreign companies expand their workforce into Canada by acting as the employer of record (EOR), a similar service to a PEO in the U.S. We also take care of small businesses in Canada who don’t have the time or expertise for payroll.