Like nearly any element of your business, you need to achieve balance with your payroll department. You want the quality that comes with hiring full-time staff, but you may not be able to afford the salaries that come with it. Similarly, you may try to save money by working with a small group of professionals or incorporating these duties into your other responsibilities. But you might find that you have less time to focus on more important aspects of your company, and costly errors might start popping up. How can you get the best of both worlds?
If you hire an employer of record for payroll, you’ll get efficient service at a fair price. These organizations are often used to hire new clients, but through a limited agreement, they can be used for payroll management alone. They offer a heap of benefits to their clients and often feature flat monthly fees with no surcharges or hidden costs, so you can accommodate them in your budget easily. Read on to learn about the ways in which an employer of record can take any payroll burden off of your business.
You’ll Have Payroll Experts on Your Side
You need to know what you’re doing when you work with a payroll. Processors have to do everything from remitting taxes to managing employees’ paycheques and deductions. With so many responsibilities, it’s easy to make a mistake that can devastate your company. For example, if you fail to provide your organization’s taxes to the Canada Revenue Agency (CRA) by a given deadline, you may have to pay up to an additional 10 percent of the amount already owed. This also doesn’t include a monthly interest rate of an additional two percent, so if you fail to follow the proper regulations, it could cost you dearly. Regulations and guidelines also change frequently, so you may be completely obedient to every necessary regulation one year and in severe violation the next.
With an employer of record for payroll, you’ll never have to face this type of penalty. These organizations are staffed by professionals who know everything necessary about filing taxes, applying deductions, and more. Even as regulations change, these experts stay on top of every shift and amendment, ensuring you remain compliant. They are also wholly devoted to payroll operations, with staff that handle all aspects of the process. As a result, you get the advantages of a full-time team that is wholly devoted to your organization without having to pay for multiple salaries.
They Conserve Resources
Saving time and money with an employer of record isn’t just a one-time occurrence, though. With proven professionals on your side, you’ll be able to make the most out of nearly every aspect of your payroll. Employers of record often make their names by giving their clients extra services, so you can easily find one that will handle other aspects of your business such as human resources. Furthermore, these companies work with many different organizations, and the size of their client pool allows them to bargain for better rates on benefits. As a result, you’ll save in more ways than you thought possible if you team up with an employer of record.
They Eliminate Misclassifications
Since independent contractors work independently without receiving benefits, companies tend to hire them frequently. However, if you assign the duties and restrictions of a full-time employee to these workers, you could quickly find yourself in hot water with the CRA. Employers of record ensure this won’t happen to your business. They know the regulations that apply to independent contractors and employees, so they’ll ensure that your workers are classified and paid properly.