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How to Set Up a Canadian Payroll Service

Posted by Corinne Camara

|

Aug 29, 2016 9:00:00 AM

How_to_Set_Up_a_Canadian_Payroll_Service.jpgIf you own a small business, it can be hard to figure out how payroll works. Trying to find the best payroll service, learning how to pay employees, and knowing the differences between each payroll program can be complicated and confusing. So your best bet as a business owner is to hire a professional payroll provider.

Businesses with less than 50 employees will benefit financially in a number of ways. Plus, you'll save time by outsourcing HR and payroll needs, because there will only be one report to approve and one invoice to pay.

When you work with a payroll processing system, they will work with you to set up the right payroll program for your business by doing the following steps:

1. Know Your Title

Before you can pay your employees, you must realize what title you fall under:

Employer: pays salaries, provides taxable benefits to employees.

Trustee: authorizes payments and/or deals with another person's property, business, or income.

2. Understand Deductions

Check which deductions through the Canada Pension Plan (CPP), Employee Insurance (EI), and the Canadian Revenue Agency (CRA) that must be made.

3. Obtain a Business Number

Ensure you have a Business Number (BN) set up ahead of time. This will make sure you are qualified and approved to own a business, and when filling out the paperwork you will need to supply:

  • Your full name as it appears on your income tax return
  • Your social security number
  • Your phone number
  • All details of your business

4. Organize Payroll Information

Compile all payroll program information including:

  • Account name
  • Figure out what date the employees will receive their first cheque
  • Business address
  • Mailing address if different from business address
  • Months included in the payroll
  • Pay-period, either weekly, bi-monthly, or once a month
  • The number of employees
  • If the business is a franchise, name of the franchisor and location of head office
  • If it is a foreign-owned business, the country of the business affiliate

5. Register

Register for a business registration either online, through fax or email, or by phone.

Online: Through the CRA, you can register for both a business number and a program account through their Business Registration Online (BRO) service. This is the best way to go if your business does not have any complex registration requirements.

Fax and email: You must complete form RC1, request a business number, and mail it to your nearest tax office.

Phone: Call the CRA's business inquires line at 1-800-959-5525. Before you call, it is important to know all pertinent information about each account you want to open.

As a business owner, you have many other things to worry about rather than dealing with the time consuming process of payroll. Outsourcing your payroll services to a professional provider will ensure your employees are always paid promptly and accurately. Call today for more information.

7 Signs It's Time to Outsource Payroll

Topics: Canadian Payroll Service

3 Steps to Choosing a Payroll Service Provider in Canada

Posted by Stacey Duggan

|

Nov 28, 2014 9:00:00 AM

3-Steps-to-Choosing-a-Payroll-Service-Provider-in-CanadaIf you're looking for a payroll service provider in Canada, you already know that a service provider can help your business in substantial and tangible ways. When you don't have to concern yourself with the day-to-day details of keeping up with payroll, you can focus on the aspects of your business that only you can manage. You can save time, and you can have the peace of mind that your business is staying compliant with provincial and federal regulations. Additionally, you can avoid confusion and delays when you have employee turnover that affects your payroll.

All of these benefits can be yours when you work with a payroll service provider in Canada, but how do you find the right provider for your business?

Ask About Government Remittances

Government remittance is an essential part of payroll, and when you hire a payroll service provider in Canada, you should expect that all of your remittance tasks would be handled by your provider. This isn't always the case, though. Many payroll service providers take care of the remittances to the Canada Revenue Agency (CRA), but they leave remittances to other government agencies up to you. Yes, you need to make sure your federal tax, EI, and CPP are sent to the CRA, but if you're already outsourcing these items, you might as well make sure that WSIB, Health Taxes, and other government remittances are managed and paid as well.

At The Payroll Edge, we calculate and remit all necessary funds to every relevant government agency in all Provinces across Canada. This is part of our regular service, and we provide you with a complete audit trail. 

Check on Compliance

When you search for a payroll service provider in Canada, be sure to ask about their knowledge of compliance. At last count, there were over 190 different payroll and HR regulatory legislative requirements affecting small-to-midsize businesses. It's nearly impossible for business owners to keep up with these regulatory requirements while they're dealing with the intricacies of running their businesses. Many payroll service providers provide online updates about these regulatory changes in the form of downloadable pdfs or online reports.

We believe most business owners need more than access to online reports, however, and that's why we have HR specialists available by telephone to discuss how new regulatory changes affect your specific business. This service is provided to our clients at no additional cost. 

Find Out About the Service Provider's Relationship with Government Authorities

Like anyone else, government officials prefer to work with those who are familiar to them and who are recognized as having a thorough knowledge of the topic at hand. This makes their jobs easier as they sort through questions and unique situations. 

The Payroll Edge is well known by both federal and provincial government authorities because we contribute to discussions on government policy surrounding employment policy changes. Our clients benefit from the recognition we receive from our ongoing collaborations and discussions with government authorities.

By asking about government remittances, checking on compliance, and finding out more about a service provider's relationship with government authorities, you can choose a payroll service provider in Canada that meets your needs and offers specialized help to your business. When you can offload your payroll duties to the experts, you can focus on growing your business and doing the tasks you enjoy most.

7 Signs It's Time to Outsource Payroll

Topics: Canadian Payroll Service

How Canadian Payroll Keeps US Companies from Operating in Canada

Posted by Stacey Duggan

|

Feb 11, 2014 9:00:00 AM

How Canadian Payroll Keeps US Companies from Operating in CanadaManaging Canadian payroll is no easy task. For US-based businesses, there are numerous administrative hurdles that must be overcome before paying Canadian employees. Overcoming those hurdles is a time-consuming and expensive process. Once the hurdles have been cleared, there are ongoing concerns about the complexity of the payroll laws, as well as the frequent changes to those laws. The headaches associated with Canadian payroll have kept many US-based businesses from expanding into Canadian markets. For some businesses, the immediate and ongoing costs, as well as the risk of making mistakes, are simply too much to bear. Those companies choose to forego a Canadian expansion, rather than deal with the complexities of Canadian payroll law. Fortunately, there is an easy, affordable way to deal with Canadian payroll, while also minimizing the potential risks.

Jumping Through Hoops Yourself

Paying Canadian employees isn’t as simple as doing a quick currency conversion and sending out checks. Before you ever get to the point of paying employees, there’s a laundry list of administrative hoops to jump through. To legally establish a Canadian payroll department, you have to have a physical presence in Canada. This means establishing an actual, working office. You can’t get by with a postal box or an empty storefront. This cost alone has caused uncounted businesses to abandon their expansion plans.

Once you’ve established a physical presence, you’ll be faced with a few more hoops. You’ll need to set up all of your government accounts—the difficulty of setting up these accounts will vary greatly, depending on your type of business and what provinces you’ll be operating in. After that, you’ll need to set up bank accounts, purchase insurance, and schedule any workplace safety inspections. Once all of that is done, and you’ve gotten the green light from all of the different agencies involved, you can start hiring employees.

Hiring employees isn’t the final step in the Canadian payroll process. Once hired, they must be properly classified, trained, and provided all legally required materials regarding workplace health and safety. After they begin work, you’ll be responsible for keeping up with any changes to the laws, as well as any changes to worker classifications or job sites. Those laws can change with little notice, and are often subject to differing interpretations. Mistakes along the way will cost you time and money. Make mistakes after you’ve hired employees, and you could be facing audits, fines, and criminal penalties.

Letting Someone Else Jump Through Hoops

You could spend a lot of time and money trying to set up your own Canadian payroll department. Or, you could spend no time and less money hiring a Canadian Employer of Record (EOR). An EOR performs the same functions as a Professional Employer Organization (PEO) in the States. You pay the EOR directly, and they manage all aspects of your payroll. From hiring and training, to workplace safety and tax remittances, everything is handled for you. Since they’ve already set up the necessary accounts and infrastructure, they can start conducting your business in Canada almost immediately. And, since they service a variety of clients, the costs of jumping through the hoops are distributed across those clients – no single business has to foot the entire bill themselves.

An EOR like The Payroll Edge saves time, money, and risk. With their professional services, it’s unlikely that any mistakes will be made when dealing with Canadian payroll. They have the training and experience to keep up with the current complex payroll laws, and to deal with any future changes to those laws. With their help, you don’t have to worry about Canadian payroll problems keeping you from operating in Canada.

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

Topics: Payroll Processing, Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Canadian Payroll Deductions, Canadian Payroll Regulations, EOR, Canadian Payroll Service, U.S. Companies operating in Canada, CRA

Why a Canadian Payroll Calculator Can Be Your Best Friend

Posted by Stacey Duggan

|

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

5 Ways Outsourced Payroll Processing Saves You Time

Posted by Stacey Duggan

|

Jan 6, 2014 9:00:00 AM

5 Ways Outsourced Payroll Processing Saves You TimeIn business, time is money. Every minute you spend dealing with payroll processing is a minute that isn’t spent on your core business pursuits. For US-based businesses paying Canadian employees, the time spent on payroll is effectively doubled. Since your US payroll system won’t work for Canadian employees, you need a second, separate system. That means double the investment of time, energy, and money. To avoid this added expense, it makes sense to use outsourced payroll processing. Aside from saving you the time of setting up and utilizing a second payroll system, outsourced payroll processing can save you time in many other areas.

1. Administrative Setup

Setting up a business in Canada is time-consuming and costly. You need to establish a business presence inside of the country, establish all of the necessary government accounts, and create a banking and insurance infrastructure. Using an outsourced payroll processing service allows you to sidestep this investment of time and money. They can operate as an Employer of Record (EOR), which is the Canadian equivalent of a Professional Employer Organization in the States. As an EOR, an outsourced payroll processing service has already met all of the legal requirements for paying Canadian employees.

2. Legal Training

Learning the Canadian employment and tax codes takes a lot of time, and a lot of commitment. As the codes change over time, additional training is a constant expense. Without a deep understanding of the laws and regulations, mistakes are almost guaranteed. When those occur, the time and expense to remedy them can be considerable. Payroll service providers deal with payroll issues every day. They provide services to a wide variety of industries, so there aren’t many situations that they don’t encounter on a frequent basis. To deal with those situations, their staff is constantly training, attending workshops, taking continuing education classes, and meeting with auditors and inspectors.

3. Software Setup and Training

Once you have more than a handful of employees, it becomes impractical to try to handle payroll using a pen and paper. Payroll software is expensive, and it takes time to train employees to use it. As rules change, and software updates are issued, more training becomes necessary. Using a payroll service provider as an EOR saves you the time and expense of maintaining costly software. They already have the best software available, and they constantly train in its use. Instead of spending time learning software that serves a very small purpose for your company, your employees can focus on developing skills that advance your principle business endeavors.

4. Error Checking

Going over timesheets and invoices can take a considerable amount of time. If any errors are made, even more time is necessary to find and remedy the mistake. A payroll service provider has the software and experience to avoid mistakes in the first place, and uncover them quickly on the rare occasions when they occur. Since a payroll service provider has a large number of employees trained to handle payroll, there are more sets of experienced eyes going over your payroll numbers. This greatly reduces the chances of any mistakes slipping through the cracks.

5. Audit Prevention

Mistakes cost time to fix and, if they lead to an audit, cost time spent dealing with multiple bureaucracies. Collecting paperwork, meeting with officials, and sitting through hearings don’t help advance your business. The best way to deal with audits is to avoid them in the first place. Payroll service providers are experts at identifying and fixing any red flags in your paperwork that could lead to an audit. With their help, you can make sure that all of your paperwork passes muster.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Processing, Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Canadian Payroll Deductions, Canadian Payroll Regulations, Canadian Payroll Service, Payroll Calculator, Paying Canadian Workers

How American Companies Avoid Fines Paying Canadian Workers

Posted by Stacey Duggan

|

Jan 2, 2014 9:00:00 AM

How-American-Companies-Avoid-Fines-Paying-Canadian-WorkersFor a US-based business, paying Canadian workers is no simple matter. Some companies erroneously believe that all they need is a currency converter to start paying Canadian workers. If that were the case, every US company would be operating on both sides of the border. Unfortunately, despite the cultural similarities, the US and Canada don’t share very much when it comes to employment and payroll laws. The Canadian system is so different from the US system that there is virtually no overlap. For companies wishing to operate on both sides of the border, this presents a unique set of challenges. Paying Canadian workers without meeting those challenges can result in substantial fines and penalties. There are really only two legitimate ways to pay Canadian workers while avoiding those fines and penalties.

Become a Canadian Payroll Expert

If you choose to go it alone, you, or someone in your company, needs to learn everything there is to know about Canadian employment and payroll regulations. Federal and provincial laws are incredibly intricate, with a lot of subtleties that are learned only through years of experience. They are also in a state of constant evolution. This year’s rules and regulations can be substantially different from next year’s rules and regulations. Some policy changes can roll out at completely random times during the year, requiring you to keep up with possible changes every day of the year. Once a policy is in effect, you’re responsible for abiding by it, whether you know about it or not. If you fall behind on your studies, or miss an announcement from one of the many agencies you’ll be dealing with, you’ll be on the hook for any penalties.

Hire Canadian Payroll Experts

Canadian payroll service providers are experts at paying Canadian workers. In fact, it’s something they do all day, every day. They are constantly learning the new laws and regulations, and how they apply to the many different worker classifications and scenarios. They have the newest software and technology to streamline payroll services for maximum efficiency at minimal expense. If you’re interested in paying Canadian workers legitimately, and without the risk of fines, you should consider hiring a Canadian payroll service provider.

Canadian payroll service providers like The Payroll Edge operate as Employers of Record (EORs) within Canada. These fulfill the same functions as Professional Employer Organizations (PEOs) in the US.

Instead of becoming, and remaining, and expert on Canadian payroll law, you can simple hire a Canadian payroll service provider to act as an EOR. They’ll handle all of your hiring, management, payroll, and compliance, without you having to spend all of your free time studying foreign payroll legislation.

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

Topics: Payroll Service Provider, Canadian Payroll, Canadian Payroll Deductions, Canadian Payroll Regulations, EOR, Professional Employer Organization, Canadian Payroll Service, PEO, Canadian Employer of Record, American Business in Canada, Paying Canadian Workers

What is the Best Canadian Payroll Calculator?

Posted by Ray Gonder

|

Dec 27, 2013 9:00:00 AM

What is the Best Canadian Payroll Calculator2Any business (including those based in the US) that needs to pay Canadian workers could benefit from a Canadian payroll calculator. These calculators can help you figure out basic withholdings for Canadian taxes, the national pension plan, and unemployment insurance (called employment insurance in Canada). For everyday withholdings and remittances, a Canadian payroll calculator can point you in the right direction. However, there are some limitations to a Canadian payroll calculator that you need to take into account. Failing to address those limitations can cause you to withhold too little or too much money from your workers’ checks. When that happens, you’ll be on the hook for back payments, repayments, fines, and more.

What it Does

A Canadian payroll calculator takes the information you enter, and gives you a quick overview of the most likely withholdings and remittances. It bases the output solely on the information you’ve entered, so be sure to double check what you enter. Using current laws and regulations, the calculator is able to predict the standard withholdings for your employees. This will help give you an idea of what you should be holding back from each paycheck. While it’s certainly not foolproof, it can show if your withholdings are currently way off.

What it Doesn’t Do

A Canadian payroll calculator can’t do advanced error checking, and it can’t offer legal advice. It assumes that you understand, and are correctly applying, all of the Canadian workplace regulations. If you misunderstand or misapply a regulation, the calculator will give you an erroneous result. If you misclassify a worker, or enter the wrong tax information for them, again, you’ll get a false result. The calculation is only as accurate as the data entered, so be sure you know what you’re entering.

The Best Calculator

Right now, the most reliable Canadian payroll calculator is a professional payroll service provider (like The Payroll Edge). They know and understand all of the relevant laws and regulations governing payroll withholdings and remittances. The staff spends every day dealing with every possible payroll scenario, so they don’t get tripped up by the subtleties of the law. They know how to appropriately classify employees, to make sure they’re being entered correctly into the payroll system. A professional payroll service provider can also offer advanced error checking, so simple arithmetical mistakes don’t end up costing you fines and back payments. While a payroll calculator can point you in the right general direction, a professional payroll service provider can ensure that you achieve, and maintain, full compliance with all applicable laws.

Canadian Payroll Tax Deduction Calculator

Topics: Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Payroll Tax Calculations, Payroll Tax in Canada, Canadian Payroll Regulations, Canadian Payroll Service, Payroll Calculator, CRA Payroll Tax

5 Things to Consider When Hiring a Payroll Service Provider in Canada

Posted by Stacey Duggan

|

Dec 2, 2013 9:00:00 AM

5 Things to Consider When Hiring a Payroll Service Provider in CanadaHiring a Canadian payroll service provider isn’t a decision that should be made lightly. Like all of your long-term business partnerships, you should do your due diligence, and make sure you know exactly what you’re getting into. By doing your homework, you’ll be able to enjoy all of the benefits that a reputable Canadian payroll service provider has to offer. To help you get started, here are five things you should keep in mind when hiring a Canadian payroll service provider.

1. Are They Full Service?

Don’t let the name fool you; high-quality payroll service providers usually offer a full range of services along with payroll management. If your Canadian payroll service provider does nothing more than turn timesheets into cheques, you’re not getting a lot for your money. Full service providers can handle remittances, error-checking, audit protection, and more. Find out what services are available, even if you don’t need them immediately. Adding new services from a full-service provider is easier than changing providers as your business grows.

2. Are They Easy to Work With?

The best Canadian payroll service provider isn’t much good to you if you can’t use their services. Engaging a payroll service is about convenience and cost reduction. If they aren’t convenient, there’s almost no chance you’ll save money using their services. Ask about features like online access and monitoring. If they use a proprietary time tracking system, make sure that they’re available to help you make your system compatible with theirs. Find out ahead of time what is expected of you, and what they’ll do to help you meet those expectations.

3. Are They There When You Need Them?

Problems don’t always arise during normal office hours. This is especially true if you’re running multiple shifts. When a problem does crop up, is your Canadian payroll service provider available to help you? No payroll provider operates on a 24/7 basis; however, quality payroll providers always have someone available to address emergencies. Whether it’s a callback service, a mobile number, or an emergency email address, there should always be a way to get in touch with someone.

4. What Help do They Provide?

Support services can vary widely from one Canadian payroll service provider to the next. Some offer little to no support, leaving you on your own when problems arise. Other, more reputable providers, offer a robust support network, covering everything from timesheet reconciliation to audit preparation. Wider support options may cost a little more, but can quickly pay for themselves if you ever need them.

5. Can You Afford Not To?

Handling payroll services on your own is expensive, labour-intensive, and risky. You’ll have to handle all of the expense of training and buying software and equipment on your own. In the event of any errors, you’ll be on your own when the CRA comes calling. Given all of the obvious and hidden expenses of managing your own payroll, payroll service provider is a safer, more affordable option.

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

Topics: Payroll Service Provider, Outsourced Payroll Service, Payroll Tax Calculations, Canadian Payroll Service, Dependable Payroll Service, Full Service Payroll Provider

Make Sure You Don’t Miss Any Canadian Tax Withholding

Posted by Stacey Duggan

|

Nov 27, 2013 9:15:00 AM

Payroll Service Providers Ensure You Don’t Miss Any Canadian Tax WithholdingMissing Canadian tax withholdings can be an expensive mistake for your business. The fines and penalties for improper withholdings can easily exceed the cost of hiring a Canadian payroll service provider to do it right the first time. In the event of an audit or formal hearing, you’ll also have to factor in the expense of legal representation. Of course, you also have to consider the amount of time you’ll spend dealing with multiple levels of government bureaucracy. In the end, the services of a Canadian payroll service provider would end up saving you a lot of money, time, and aggravation. Whether you’re a Canadian employer or a US-based employer paying employees in Canada, a Canadian payroll service provider can make sure that your withholdings are accurate and timely.

Canadian Businesses

Payroll regulations in Canada are incredibly complex. They also change frequently, and with little notice. To make matters worse, the application of those regulations can change depending on your situation. Filing deadlines may change, depending on your previous withholdings. The necessary withholdings may change, if the nature or place of employment for a worker changes. Keeping up with changes to the regulations, and changes to the way they apply to your business, can be more than a full-time job. If you get it wrong, even once, the fines and penalties can be staggering. Engaging the services of a Canadian payroll service provider helps ensure that you never get it wrong.

US Businesses

If you’re a US-based business paying Canadian employees, things are even more complicated. You have to deal with all of the same rules and regulations that govern Canadian businesses. You also have to deal with all of the issues inherent in running a business across international borders. And you have to do it all while still dealing with all of your payroll issues in the States. You will essentially be running two separate, and incredibly complex, payroll departments. Mistakes on either side of the border can cost you dearly.

Using a Canadian payroll service provider as an Employer of Record (EOR) offers you some key advantages. Similar to a US Professional Employer Organization (PEO), an EOR acts as your administrative presence in Canada. They can handle all of your payroll needs, including withholdings and remittances. They can also help you establish a business infrastructure, meet insurance requirements, and other practical and legal necessities. With their help, you don’t have to worry about missing withholdings, managing multiple payroll departments, juggling international legal compliance, or other issues.

Work More, Worry Less

Using a Canadian payroll service provider allows you to spend more time focused on mission-critical tasks. You don't have to spend time managing multiple payroll departments, learning international payroll requirements, or dealing with bureaucrats from two separate countries. Instead, you can let a Canadian payroll service provider handle all of those issues for you, while you remain focused on more important business pursuits.

Canadian Payroll Tax Deduction Calculator

Topics: Payroll Tax, Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Canadian Payroll Deductions, Payroll Tax Calculations, Payroll Tax in Canada, Canadian Payroll Regulations, Payroll Service, Canadian Payroll Service, U.S. Companies operating in Canada

Manage Your Payroll the Right Way with an Outsourced Service Provider

Posted by Ray Gonder

|

Nov 20, 2013 9:00:00 AM

describe the imagePayroll processing is an important part of any business. Making sure everyone is paid accurately, and on time, is critical. Making sure all of your reporting and remittance obligations are met is equally critical. Mistakes in any part of your payroll processing can lead to labour issues, audits, and expensive legal entanglements. There are several ways to handle your payroll processing, some more difficult than others. Handling your payroll the right way will save you time, effort, and money. Handling it the wrong way can end up costing you way more than you bargained in the long run.

DIY Payroll Processing

You always have to option of just doing it all yourself. Most businesses start out this way, with the owner handling payroll until it becomes too large to manage. You can take the time to learn all of the regulations, attend conferences to learn about new legislation, and even buy yourself some expensive software. Of course, then you have to learn to use the software, and keep up with updates and changes to the software. Once you have the knowledge and the software, you can spend hours every week handling all of the paperwork for payroll processing, as well as addressing any employee issues with payroll. As your business grows, you’ll spend more and more time on payroll, and less time focused on your business.

Pass it Along

Often, when payroll processing gets too complex for the owner, it gets handed down to the growing HR department. They inherit the responsibility of keeping up with changing legislation, learning new software, and dealing with employee issues. They often have little or no previous experience with payroll processing. They get to start from scratch, and learn the ins and outs of payroll service as they go. Of course, they aren’t liable for any mistakes they might make along the way. That burden still falls directly on the company. Incorrect payments or improper remittances can trigger a visit from the CRA. If they find problems with compliance, the fines and penalties go to the company, not to the HR staff.

Amateurs vs Experts

Payroll processing is a lot like other business services. It’s best to leave it in the hands of agencies that specialize in making sure it’s done right. Most businesses use accountants for taxes, shipping companies to deliver goods, and service agencies to repair equipment. Why do they outsource all of those needs? Because smart owners know that no business can do everything. Letting trained, experienced experts handle your tangential business needs just makes sense. When you try to do everything, you end up putting too much stress on your personnel, and pulling their focus away from your core business pursuits. By outsourcing some of your needs, you allow your staff to maintain laser-focus on growing and improving your business.

An outsourced payroll service relieves pressure on your staff, and relieves you of the stress of worrying about potential audits and penalties. They have years of experience interpreting and applying new and existing legislations, allowing them to easily navigate the complex payroll requirements. They undergo frequent, rigorous training, and have access to the latest and best software. Using their services is just like engaging a tax professional or repair service. If you want the best service, you hire someone who specializes in the service you need, and who has a proven track record of success.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Processing, Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Canadian Payroll Deductions, Payroll Tax Calculations, Payroll Tax in Canada, Canadian Payroll Regulations, Canadian Payroll Service, Payroll Calculator, CRA, CRA Payroll Tax, CRA Compliant

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