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Americans Conducting Business in Canada Beware: Border Patrol Keeping Tabs

Posted by Stacey Duggan

|

Apr 29, 2014 9:56:00 AM

 

As seen on thestar.com “Border officials to share travellers’ info with federal government” by Nicholas Keung.

Effective summer of 2014, Canadian and U.S.A. border patrol services will start keeping tabs on Canadians and Americans entering and exiting either side of the border. The Entry/Exit program initiative will further increase both countries security and has already begun taking note of third country national’s information including those arriving to Canada on work permits, foreign students and visitors. 

The Entry/Exit program will be in full effect on June 30 2014, and will be extended to all Canadian and American citizens crossing the border.  

Canada and the USA border patrol services will soon be collecting both countries citizens information as part of the new Entry/Exit initiative from The Payroll Edge

What Information will the Canada Border Services Agency (CBSA) be collecting and sending to federal departments?

  • Travellers Name
  • Date of Birth
  • Nationality
  • Gender
  • Document Type
  • Work Location Code/Port of Entry Code
  • Date and Time of Entry
  • Country where travel document was issued

How does the Canada Border Services Agency use this information? Simple; data on entry to one country would serve as a record of exit from the other. This information will enable government officials to track illegal activity such as citizens scamming Employment Insurance or child tax benefits programs when they are not in the country.

So how does this affect American employers employing or paying Canadian workers? If you conduct business in Canada -and travel there regularly, be prepared to hand over your data to border officials and have it shared between both countries federal departments.  

If you have a U.S. employee who crosses the border into Canada on a regular basis and is away from their country of residence for long periods of time, ensure that you are aware of the rules surrounding foreign travel as it may not only affect the employee’s and companies taxation liabilities, misuse will result in their inability to cross the border at all.

American Employers conducting business in Canada should also be aware of the status of their permanent residency (if applicable) as this will now be tracked under the new Canada-U.S.A. border data exchange program. Permanent residents must live in Canada for a total of at least two out of every five years to remain eligible for the program.

If you conduct business in Canada and wish to avoid the complications of your U.S. employees crossing the border to service your clientele here, employing a Canadian may be the best solution.  To do so without the complexity of registering a business in Canada and understanding foreign employment law, an Employer of Record Service in Canada (known as a PEO in the U.S.A.) can help. A Canadian Employer of Record takes care of everything for American employers retaining Canadian workers including payroll tax deductions, employment standards compliance and HR management solutions. Contact The Payroll Edge to learn more. 

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

Topics: Professional Employer Organization, Government Compliance, PEO, Canadian Employer of Record, American PEO, American Business in Canada, Canadian-Based EOR, US and Canadian Business

Job Creation Supported with Three Year Freeze on Employment Insurance

Posted by Stacey Duggan

|

Nov 13, 2013 9:00:00 AM

government remittancesThe Harper Government announced last month that it will freeze the Employment Insurance (EI) premium rate for employees at the 2013 level of $1.88 per $100 of insurable earnings for 2014, and additionally that the rate will be set no higher than $1.88 for 2015 and 2016.

“While Canada has seen steady job creation since the end of the global recession with over one million net new jobs, significant challenges remain in the global economy. Our Government is freezing EI rates and leaving $660 million in the pockets of job creators and Canadian workers in 2014 alone which will help provide the certainty and flexibility employers, especially small businesses, need to keep growing,” said the Honourable Jim Flaherty, Minister of Finance, at an event hosted by Ottawa Camping Trailers Ltd. “This tax relief will help support Canada’s continued economic recovery and sustained, business-led, long-term growth.”

Since July 2009 employment has increased by more than one million jobs, the strongest job growth among Group of Seven (G-7) countries over the recovery. Close to 90 per cent of all jobs created since that time have been full-time positions, with more than 80 per cent in the private sector and two-thirds in high-wage industries.

The OECD recently projected Canada to lead the G-7 in economic growth for 2013 and the World Economic Form ranked Canada’s financial system as the safest and soundest in the world for a sixth year in a row.

Falling unemployment over the recovery means the EI Operating Account is on track to return to balance, and the premium rate increases previously projected are no longer necessary.

“As payroll taxes like Employment Insurance are particularly challenging for small business, today’s announcement of an EI rate freeze is fantastic news for Canada’s entrepreneurs. This move will keep hundreds of millions of dollars in the pockets of employers and employees which can only be a positive for the Canadian economy. As employers pay 60 per cent of the cost of the EI system, small firms can use these savings to hire, improve wages or help grow their businesses,” said Dan Kelly, President and CEO of the Canadian Federation of Independent Business.

Starting in 2017, as announced in Economic Action Plan 2012, the EI premium rate will be set annually at a seven-year break-even rate. This will ensure that EI premiums are no higher than needed to pay for the EI program over that seven-year period, and will result in sustainable funding, affordable rates, and ongoing predictability and stability.

Government of Canada Site

Canadian Payroll Tax Deduction Calculator

Topics: Canadian Payroll Regulations, Government Compliance, Remitting Taxes, EI, Canadian Businesses, Employment Insurance

Staying Up to Date on Changing Payroll Regulations Can Be a Full-time Job

Posted by Stacey Duggan

|

Nov 8, 2013 9:00:00 AM

describe the imageAround 2,500 years ago, Heraclitus taught that “the only thing that is constant, is change.” In hindsight, it seems that he was predicting the existence of Canadian payroll regulations. Every year, if not more often, these payroll regulations undergo wholesale changes. New payroll regulations are added, old ones are removed, and many that are left get modified. When the dust settles, it’s up to you to figure out how the new set of payroll regulations affects your business. Unfortunately, the CRA expects a steep learning curve. Mistakes can start costing a business fines and penalties from the first day the new payroll regulations are in effect. With a lot to learn and relearn, and no room for error, keeping up with changes to the regulations can be a full-time job.

No Easy Task

Even without all of the changes, keeping up with payroll regulations isn’t easy. Aside from the CRA, there are provincial agencies that require their own remittances and paperwork. There are worker-classification issues, insurance payments, overtime calculations, and holiday pay to consider. Different workers will all have different rates and requirements, forcing the payroll manager to track each employee separately. Time reporting must be verified weekly to avoid any under or over payments. In the event of any errors, corrections must be submitted to the relevant agencies, and new cheques must be issued. And all of this is standard, day-to-day payroll management. There are complexities that can make all of this look simple by comparison.

All Tangled Up

Payroll regulations are complex, and interwoven. Some regulations that appear to stand alone can have a significant impact on other regulations. Worse yet, any impact may entirely depend on the situation at hand. A worker’s classification may change from one jobsite to the next—or it may not, depending on their role at the other jobsite. Reporting requirements can change from one job position to the next. Even pay rates for holidays or overtime can change, depending entirely on which regulations apply to a particular situation. The same worker may have to be tracked using multiple systems if they work at different sites or in different roles. Knowing how and when these regulations affect each other takes a lot of expertise. Getting, and maintaining, that level of expertise requires constant training and practice.

Staying up to Speed

Keeping up to date with changing payroll regulations requires a serious commitment of time and money. Payroll managers have to be trained, take classes, and attend seminars and conferences. Giving them the best tools requires purchasing expensive software, which also requires training to use. Even when they’re fully trained and have the right software, there’s no guarantee that they’ll be getting the experience to handle complex issues. The vast majority of their duties will be day-to-day payroll management. On the rare occasions when difficult regulations come into play, they may not have the expertise to recognize them.

Compliance with Confidence

A payroll service provider deals with changing payroll regulations every day. They may even be involved in helping to craft those changes. They have a level of expertise that can only be gained by constant training and immersion in payroll issues. They use state of the art software to help them accurately and efficiently meet your payroll needs. The cost of all the software and training is distributed among dozens, or hundreds, of clients—so you have no large, up-front expenses. Payroll service providers are frequently in contact with inspectors and auditors, so they know what red flags are triggering issues. To keep up with changing regulations, you need a full time payroll service provider.

What Are You Leaving to Chance by Handling Payroll on Your Own

Topics: Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Canadian Payroll Deductions, Canadian Payroll Regulations, Government Compliance, Canadian Payroll Service, Payroll Calculator, CRA, Payroll Deductions, Payroll Regulations, CRA Compliant

Bigger May Not Always Better When it Comes to Payroll Processing

Posted by Karen McMullen

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Nov 1, 2013 9:00:00 AM

Bigger May Not Always Better When it Comes to Payroll ProcessingBusiness owners too often fall for the idea that bigger is always better. The huge payroll processing service with the flashy ad campaign must be great, right? They can afford huge billboards, sharp uniforms, and take up an entire floor of the new office building downtown—so they must be great, right? Of course, if they’re that great, why are they spending so much money and effort to convince you of how great they are? Maybe they do have great products and services, but something is lacking that makes them have to work so hard to attract new clients. Often, with large payroll processing providers, the thing that’s missing is personalized service. In a large office, with so many clients, it can be impossible to get to know each business on an individual basis. If you don’t know the business, how can you ever really know what the business needs?

I’ll Have to Refer You to Our Website

When you have tax or payroll questions, it would be nice to get an answer that’s specific to your business. A generic, one-size-fits-most web document isn’t going to address your particular concerns. You’ll have to read the document, decide what’s relevant to you, and then interpret how it applies to your business. Aren’t you using a payroll processing service to avoid these kinds of hassles?

A large organization isn’t going to take the time to research topics and how they apply to your business. When you call with questions, you’ll get generic answers and a web address for supporting documents. After that, it’s up to you to do the research and apply your findings.

Looks Good Enough to Me

At the end of the pay period, your payroll processing service will take the information you send them, enter it into their system, and cut the cheques. Error checking, if it exists, will only look for obvious arithmetical errors. Mistakes that would be obvious to anyone who knows about your business will be ignored or overlooked. It will be up to you to rectify any errors, and you could be charged extra by the payroll processing service.

What happens if there’s a data entry error, or somebody forgets to log in or out? Transposition errors could have your janitorial and senior marketing staff switching salaries. A simple, common-sense check of your data would reveal these errors, and correct them before they result in erroneous cheques. A large payroll service isn’t going to have the time, or the familiarity with your business, to catch these errors in time.

Sorry, We Don’t do That

Do you make remittances for any taxes other than the payroll tax? If you’re an employer in Canada you make worker’s compensation remittances and if you’re in Ontario or Quebec you have other taxes as well. Large payroll services typically only provide remittance services to your payroll tax account. This leaves you responsible for all of the others. Even though you’re paying for a payroll processing service, you could still end up doing some of the work you’d expected them to handle.

If you’re handling some remittances, you might as well be doing them all. If you’re outsourcing remittances, they should all be handled by a single provider. Having half of them done in-house, and half done by a payroll processing service is an invitation to errors. Having multiple service providers handling your remittances is also an invitation to disaster. A large agency may not have the time, or interest, in handling remittances to other agencies.

Smaller is Sometimes Better

Individualized attention can be a huge benefit when it comes to payroll processing. Those large agencies may do a lot of things very well, but personalization isn’t one of them.

What Are You Leaving to Chance by Handling Payroll on Your Own

Topics: Payroll Service Provider, Outsourced Payroll Service, Payroll Tax Calculations, Government Compliance, Payroll Calculator, CRA, Payroll Deductions, Remitting Taxes, Worker's Compensation

Changes to Alberta’s Occupational Health and Safety Regulations

Posted by Stacey Duggan

|

Oct 23, 2013 9:00:00 AM

October 1 Changes to Alberta’s Occupational Health and Safety RegulationsOne of the biggest challenges of running a business is navigating an ever-changing sea of statutory requirements. Regulations can, and often do, change with little or no notice, forcing businesses to scramble to keep up. This year is no different. Amendments to the Alberta Health and Safety Compliance rules went into effect on October 1st, 2013. As explained in this article on Lexology.com, these amendments can have a significant impact on how a business monitors, manages, and reports on workplace safety issues.

Information Access

Current copies of the Occupational Health and Safety act regulations and codes must be made readily accessible to workers. These copies can be digital downloads or hard copies. Either way, they must be easily accessible to any employee who wants to reference them. The amendments are not clear about whether the copies must be physically present at the work site, but it’s probably better to error on the side of caution and have copies on hand.

Worksite Conditions

Prior to the new regulations taking effect, workers were only required to report any equipment problems that could lead to health and safety issues. This has been expanded and now requires workers to make a report any time they “believe an unsafe or harmful work site condition or act exists.” As an employer, any report will then require you to “review the situation and take any necessary corrective action in a timely manner.”

What Constitutes a “Hazardous Work Site”

The previous definition of a hazardous work site as a “restricted area and a blasting area” has been widely expanded. The new definition, “a blasting area and an area of a work site where there is a reasonable chance that the airborne concentration of asbestos, silica, coal dust or lead exceeds or may exceed the occupational exposure limit for one or more of the substances under an adopted code” will require changes to the way worksites are monitored and managed. Since areas far outside of the previous hazardous work site may exceed exposure limits, it could force businesses to classify much larger areas as hazardous.

Notifiable Diseases

Following the implementation of these amendments, all asbestos-induced cancers are now considered notifiable diseases. In a semantic change, “lead poisoning” has now been changed to “elevated blood lead level,” though it is still a notifiable disease if the level exceeds “0.5 micromoles per litre.”

Director’s Permitting Authority

One of the goals of the amendments is to better align the suspension and cancellation rules as they pertain to the mining certification program and non-mining blasters’ permits. To accomplish this goal, the Director of Inspection has been given greater authority to issue suspensions and cancellations, reassess competencies, require additional training, or all of the above. As of October 1st, the Director has the power to suspend or cancel mining certificates or blaster’s permits “if there is reason to believe that its holder has done or failed to do anything that, in the Director’s opinion, warrants the cancellation or suspension.” In addition, the director can reassess the competency of the permit or certificate holder “for any reason.”

Measuring the Impact

As these amendments to the Alberta Health and Safety Compliance regulations have just gone into effect, it’s difficult to know how they’ll be applied, and what lasting effect they’ll have on employers. Keeping up with changes to the Alberta Health and Safety Compliance regulations, and other statutes, can be time consuming and frustrating. The penalties, should you make a mistake, are dire. Working with a reputable outsourced back office service provider makes it easier to maintain compliance with regulations that are constantly in a state of flux.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Service Provider, Canadian Payroll, Government Compliance, Canadian Payroll Service, Temporary Staff Agency, Compliance, Alberta, Health and Saftety, Health and Safety Regulations, Alberta Health and Safety Compliance

3 Ways Outsourced Payroll Processing Saves You Money

Posted by Stacey Duggan

|

Oct 18, 2013 9:00:00 AM

3 Ways Outsourced Payroll Processing Saves You MoneyCanadian businesses large and small can save money by using outsourced payroll processing. Payroll processing is a necessary part of every firm that employs people, but it doesn't have to consume much of your time, resources, and focus. By outsourcing this task, you can reduce your overhead costs, find freedom from fines, and enjoy greater accuracy in your payroll.

1. Reduced Overhead Costs.

Some firms choose to hire a payroll clerk to take care of payroll processing. They figure they'll have greater in-house control over the process, and they might feel that communication will be easier when payroll processing is just a few steps away. Proximity and control can often be elusive, however, especially when you realize that these "benefits" can be extremely costly. One of the biggest drawbacks of choosing to hire your own payroll clerk instead of working with outsourced payroll processing is that you then assume additional headcount HR overhead costs. By adding another full-time employee to your payroll, you assume the clerk's wages, benefits, and other employee burdens such as Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums, not to mention paid vacation and sick days and health benefits premiums. You can reduce your overhead costs (and quite a bit of time and effort) by using outsourced payroll processing.

2. Freedom from Fines.

Regulatory changes plague Canadian businesses because they're difficult to keep up with, and the fines for ignoring the changes can be steep. Your own in-house payroll clerk will have a difficult time staying abreast of changes that can affect payroll processing, remittances, Employment Insurance, provincial and federal regulations, and more. When you entrust this work to an outsourced payroll processing firm, you are guaranteed to be compliant with all regulatory changes. Not only does this give you peace of mind and save you from administrative aggravation, but it also can save you from having to pay fines.

3. Greater Accuracy.

Along with the cost of hiring your own payroll clerk, if you take care of payroll processing in-house, you'll also incur the costs of payroll software and support systems. This software can be expensive, and there's no guarantee that it will always work perfectly and stay up-to-date with regulatory changes. Of course, there's a range of payroll processing software out there, from inexpensive and glitchy to break-the-bank expensive and robust. You'll have to make decisions about payroll processing software without having the benefit of experiencing them first-hand to judge them well. When you work with outsourced payroll processing, however, there are experts taking care of all of this for you. Since it's their business to guarantee that your payroll is processed correctly, on-time, and fully compliant with the law, outsourced payroll processing firms spend a great deal of resources on ensuring that their systems are robust, current, and fail-safe.

When you use an outsourced payroll processing firm to handle the details of your firm's payroll, you save money. You save money in overhead costs, fines, and accuracy. You can be confident that you're not overpaying any taxes or other government contributions. If saving money was the only benefit, it would be well worth it to go with a payroll processing firm, but that's not where the benefits end. In addition to saving money, you have the peace of mind of knowing that a major part of your firm is being handled by experts with years of experience in their field. Your payroll will always be on time and fully compliant with federal and provincial regulations. You can put payroll out of your mind and focus your efforts on more interesting and gratifying aspects of your business, which only you can handle.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Service Provider, Outsourced Payroll Service, Employee Payroll Deductions, Government Compliance, Canadian Payroll Service, Payroll Calculator, Great Payroll Service Provider, CRA Compliant

Why US Firms Need an Employer of Record in Canada

Posted by Stacey Duggan

|

Oct 16, 2013 10:00:00 AM

describe the imageYou already know how to operate a business in the United States, so is it really necessary to have an EOR or Employer of Record in Canada? If you're going to expand your business into Canada, you can go it alone without an EOR or employer of record, but you'll find the going a bit difficult. You'll have your own logistics and business issues to deal with, and the last thing you'll want to do is tackle the hurdles required of you by the Canadian government. Although Canada and the US have much in common, the legal and business environments have some striking differences, which can be difficult to navigate alone.

When a US-based company wants to start operating in Canada, the following criteria must be met.

  • The establishment of a Canadian administrative presence.

    This sounds fairly straightforward, but it requires significant expertise and attention to detail. You may find that the expense of establishing a Canadian administrative presence for your company makes your expansion cost-prohibitive.
  • The registration and maintenance of accounts with Canadian government authorities.

    Working with the CRA and other Canadian governmental agencies can be mind-boggling at times. This task is best left to those who have experience and contacts with the agencies. An EOR already works with Canadian government authorities on a regular basis. Taking care of this job for you is simple for an EOR with years of experience.
  • The handling of filings and remittances.

    Once your accounts are set up with various Canadian government agencies, the accounts must be updated on a regular basis. Funds collected from employees must be remitted at the appropriate intervals in the correct way. Reports must be filed, and while you're handling the American side of your paperwork, your EOR can take care of the Canadian side.
  • Canadian banking, financial, and insurance infrastructure.

    It's not just taxes and safety compliance that you have to think about when you expand your operations into Canada; you'll also need Canadian insurance, a Canadian banking solution, and a plan for your financial situation. Leave these details to an Employer of Record to avoid countless hours of work and frustration.
  • Ongoing Compliance.

    Just as laws change from time to time in the United States, Canadian laws change, both on the federal and provincial levels. It's tough enough to keep up with US legislative changes. Add to that another country's changing rules and you've got too much to keep up with. Allow your EOR or Employer of Record to understand and keep you compliant with all of Canada's provincial and federal guidelines regarding employment and health and safety rules.

When you use an EOR or Employer of Record, your employees are viewed as employees of that firm, and this situation simplifies your company's operations dramatically. Instead of having to set up tax accounts, find insurance, and open up bank accounts for payroll purposes, your workers slide into an already fully-compliant situation without your having to do any of the groundwork.

Suddenly, expanding into Canada seems like a much more reasonable and simple enterprise than you thought it was. All you need is a reliable and experienced Employer of Record like The Payroll Edge.

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

Topics: Canadian Payroll, Canadian Payroll Deductions, EOR, Government Compliance, Employer of Record, U.S. Companies operating in Canada, CRA, American Business in Canada

The CRA is Watching – 5 Audit Red Flags

Posted by Stacey Duggan

|

Oct 9, 2013 11:06:00 AM

CRA is Watching 5 Audit Red FlagsHow does the CRA make sure that Canadian businesses comply with current tax law? They audit. A CRA audit can come in one of three flavors: Income Tax Audit, HST/GST Audit, and Employer Compliance Audit.

The Income Tax Audit is the most basic (and least painful) type of CRA audit. Essentially, the CRA will examine the amount of money you spent and earned. This isn't to say that an Income Tax Audit won't impact your business. It will cost you time and money.

The HST/GST Audit verifies that you have been faithfully collecting and remitting GST/HST (Goods and Services tax/ Harmonized sales tax). This CRA audit is more involved than the Income Tax Audit.

The Employer Compliance Audit is used to ensure proper withholding and remittance. It's important to note that the CRA also examines taxable benefits in this audit.

You may feel a little better knowing that the CRA will not perform both the Income Tax Audit andthe HST/GST Audit on the same firm. That's small comfort, however, when you realize that a CRA audit is time-consuming, tedious, expensive, and intrusive. It's best to avoid an audit from the start, and the best way to do that is to avoid the following red flags:

1. Neglecting to pay CPP or EI.

One of your responsibilities as a Canadian employer is to withhold CPP contributions and EI premiums from your employees' pay cheques and then to send these funds along to the CRA. In addition to your employees' contributions and premiums, you must add your own contributions to these funds. If you don't, the CRA will require that you cover both your own portion and that of your employees.

2. Reporting Consecutive Losses.

Nobody likes to admit that their businesses are suffering – until tax time, that is. The government allows for losses by offering extra tax credits. This helps fledgling businesses to make it past those difficult first years. If you report four or more consecutive losses, however, the CRA will likely audit to see what's going on.

3. Failing to Hire an Accountant or Outsourced Payroll Processing Firm.

The CRA knows that when people handle their accounting themselves, they're more prone to making errors. In addition, when you handle your own accounting, there's more temptation to include income or expenses that shouldn't be included in your reports. For these reasons, the CRA is more likely to audit small businesses who handle their accounting themselves.

4. Reporting Excessive Business Expenses.

If you report business expenses that are much higher than you usually report, or if your business expenses are higher than other similar businesses in your area, the CRA may want to find out why. Sometimes businesses report higher-than-usual business expenses when they face a big expansion or remodeling project. You can avoid this red flag by spreading your business expenses out over several years instead of tackling everything at once.

5. Receiving Most of Your Income in Cash.

The CRA looks for unreported income, and cash deposits will be scrutinized. You should be able to explain each of your cash deposits, especially if they're not being reported as income. The CRA especially targets small businesses when it comes to analyzing cash income.

An outsourced payroll processing service can help to minimize your risk of a CRA audit by guaranteeing proper withholding and remittance, helping you to become 100% compliant, and structuring your payroll processes to avoid audit red flags. If you feel that you're currently on shaky ground when it comes to a CRA audit, take steps today to improve your situation and your peace of mind.

7 Signs It's Time to Outsource Payroll

Topics: Outsourced Payroll Service, CRA Audit, Government Compliance, Best Payroll Calculator, CRA, CRA Compliant, CPP, EI, Tax Laws, Canadian Businesses, Audit Red Flags

3 Ways Payroll Processing Can Be Made More Efficient

Posted by Ray Gonder

|

Oct 4, 2013 4:18:00 PM

3 Ways Payroll Processing Can Be Made More EfficientProcessing payroll adds a thick layer of administrative work to your already hectic days. Payroll is complicated, ever-changing, and annoyingly details-oriented. In an effort to streamline operations and be more efficient, Canadian employers generally opt for one of the following three methods.

1. Forget About It.

Sure, you'll still pay your employees, but you won't bother with all that troublesome CRA stuff. Think about it: if you didn't have to maintain your CRA account, calculate deductions, take care of payroll remittance, and mess with those troublesome T4 Slips and year-end reports, you'd be as free as a bird. You could get so much more done. You could actually focus on the exciting and profitable parts of your business.

There's just one problem with this method of processing payroll . It's so illegal that your business will probably not last very long. The first month or two that you fail to deduct and remit payroll taxes from your employees' pay cheques, the CRA will levy fines, penalties, and interest on your company. If you still persist in ignoring your legally obligated payroll duties, you may be prosecuted, fined again, and possibly even imprisoned. Clearly, this is not a good option for streamlining your company's payroll processing.

2. Hire a Full-Time Payroll Clerk.

If you've decided that the first option is not for you, you might consider hiring a full-time payroll clerk. A full-time payroll clerk would have time to take care of all the details for you so you would be free to manage your business and do what you do best. Essentially, you'd be hiring an employee to take care of administrative work that doesn't directly benefit your business. And you'd have to pay for benefits for this employee, including employer contributions to benefits and Employment Insurance.

This gets to be quite expensive, and although you'd have a person on your staff to manage the day-to-day headaches incurred by processing payroll, you're still ultimately responsible for this person's job performance. If your full-time payroll clerk doesn't have the experience to manage complicated payroll issues, or if the laws change and your clerk is unaware of the changes, you're still responsible for any problems. So while this option is better than the first option, it still comes with some drawbacks. Is there a better way?

3. Outsource Payroll Processing.

Wise employers know better than to neglect payroll responsibilities or to hire a full-time, on-staff worker to handle them. They know that forming a partnership with a payroll processing service provider can get them expert service at a reasonable price, leaving them time to focus on running and growing their businesses.

Payroll service providers like The Payroll Edge can guarantee that your payroll will be processed correctly every time, and they have experts on-staff who can answer tricky questions and find solutions to unusual circumstances. They have contacts at the CRA, so it's easier for them to reach governmental agencies to get specific answers than it would be for you or for one of your employees. Best of all, a reputable payroll processing firm will understand the details of your payroll, ensure its accuracy, and know how your payroll affects your company's legal compliance. A partner like this is an incredible asset to your company.

If processing payroll has become a heavy burden for you and for your company, do yourself the favor of investigating the third option: outsourcing payroll processing. To learn more about how outsourced payroll processing can benefit your company, contact us at The Payroll Edge.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Service Provider, Payroll Service, Payroll, Employee Payroll Deductions, Government Compliance, Best Payroll Calculator, CRA, payroll solution, Dependable Payroll Service

Alberta's Minimum Wage Increases September 1, 2013

Posted by Stacey Duggan

|

Sep 3, 2013 10:40:00 AM

Alberta Human Services

 

 

Canadian payroll providers take note; the minimum wage in Alberta increases as of September 1st.

Most Alberta employers must pay their employees, including students and youth, at least the minimum wage. The minimum wage in Alberta is set out in the Employment Standards Regulation and is as follows:

  • an hourly minimum wage of $9.75 ($9.95 effective September 1, 2013) for most employees;
  • an hourly minimum wage of $9.05 for employees serving liquor as part of their regular job;
  • a weekly minimum wage of $389 ($397 effective September 1, 2013) for many salespersons, including land agents and certain professionals; and
  • a monthly minimum wage of $1,854 ($1,893 effective September 1, 2013) for domestic employees.

However, certain categories of employees are exempt from the minimum wage requirement in the Regulation.

For more information visit the Government of Alberta Website

 

Topics: workforce compliance, Employment Standards Act, Government Compliance, Minimum Wage, Minimum Wage Increas, Minimum Wage Increase

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