When it comes to balancing the scales of your payroll departments, it seems as if you always have to weigh time against money. If you want to minimize the amount of time you spend learning regulations and staying on top of paperwork, you’ll need to hire a knowledgeable and loyal set of payroll employees. But it can be expensive to maintain this type of staff, especially when each staffer is working full time.
This problem is compounded if you’re an American company looking to set up shop in Canada. A small staff may lack the manpower and knowledge necessary to handle everything from insurance to new labour regulations. At the same time, you want to use your resources as effectively as possible, so hiring full-time staff may not work. What do you do?
Hire a professional employment organization (PEO). A PEO is a body that hires workers for you and takes care of payroll and human resources tasks. Not only do PEO services in Canada help you recruit employees and manage their files, but they offer knowledgeable service that is indispensable to any enterprise.
Help Expand Businesses
A company has to do a lot of work before it can establish a presence in a new country. To take advantage of the low corporate tax rates and new markets that Canada offers, businesses must register with departments in both federal and provincial governments, set up bank accounts and insurance policies, and comply with a whole host of new regulations and laws (which we’ll touch on shortly). Combine this with the day-to-day work that payroll and human resources departments must complete, and you may find your staff overwhelmed by the process.
PEO services in Canada can relieve you of these burdens. As Canadian enterprises, they have already completed any necessary government registration. These organizations can help you establish any accounts or policies you may need, so working with them lets you get right to hiring foreign employees without getting bogged down.
Expertise with Taxes and Regulations
Tax policies and other regulations are some of the hardest aspects of opening a business in a new country. If you fail to comply with them, you will have to pay hefty fees. For example, the Canada Revenue Agency (CRA) can issue fines of up to 10 percent of a company’s annual income if they fail to remit their taxes on time. So how do you learn a host of obscure rules quickly so you don’t incur these costs?
You don’t have to. PEO services in Canada employ staffers that are already well-versed in Canadian regulations and tax policies. They also monitor new regulations and amendments, so if a policy changes, your business won’t be unduly affected. Once your company starts operating in Canada, they’ll continue to manage everything related to your company’s tax payments, from employees’ T4 forms to any essential reports.
Prevents Costly Mistakes
Sometimes a mistake won’t just make you look unprofessional. A bad slip-up can result in huge fines, investigations, and possibly even lawsuits. Payroll and human resources are particularly susceptible to these mistakes. For example, if you declare that a full-time worker is actually self-employed, you could find yourself in hot water with the CRA.
Hiring PEO services in Canada ensures two things. First, you know that you have experts working on your payroll and human resources tasks, so they know what behaviour to avoid. Second, they’re devoted solely to this type of work, so they won’t overlook something because they are too busy completing unrelated duties. As a result, you get added peace of mind when you outsource your payroll departments to a PEO.