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5 Ways Using a Payroll Service Makes Sense

Posted by Stacey Duggan

|

Nov 6, 2013 9:00:00 AM

5 Ways Using a Payroll Service Makes SenseMany small business owners start out handling payroll on their own. As their company grows, it becomes increasingly difficult and time consuming to keep up with payroll. By that time, the company usually has some kind of HR manager or administrator, and they often inherit the payroll responsibilities. They become a default payroll manager, regardless of whether they have the training and experience to handle the needs of a growing company. This takes away from their HR responsibilities, and puts your payroll in the hands of someone who may not be able to dedicate the necessary time to do it right.

Instead of handing off your payroll needs from one employee to the next, it makes more sense to hire a payroll service. Payroll providers have the training, experience, and knowledge to handle the payroll needs of any size company. A payroll provider lets you and your staff stay focused on the business at hand, while your payroll needs receive the attention they deserve. Here are five ways that hiring a payroll service makes sense for your company:

Counting the Minutes

Every minute you spend on payroll is a minute that’s not focused on your core business activities. As the hours add up, and you answer employee queries, and read up on the latest legislative changes, more productive pursuits are being delayed.

A payroll service deals with payroll needs every single day. They don’t have other responsibilities that consume their attention. They can handle your payroll needs quickly, efficiently, and accurately. You will be able to spend more of their time focused on growing your business.

Time is Money

By saving you time, a payroll service saves you money. They also save you money by ensuring that your payroll is handled right the first time. Mistakes in payroll can be expensive. Cutting new cheques, making back payments, and government fines can quickly add up. The easiest way to avoid all of these potential expenses is by using a payroll service provider.

Focus on Service

When someone in your company handles payroll, they can’t always give immediate attention to questions or concerns. If you have a problem, you either have to interrupt the payroll manager, or wait for them to get back to you.

With a payroll service, they’re always working on payroll. When you call with questions or concerns, that’s just another part of what they do every day. Since they handle customer queries all the time, they can have the right answer for you right away. 

Get it Right

A lot of payroll mistakes can be traced to ignorance of changing legislation. Even when the legislation doesn’t change, it can be incredibly complex. Your payroll manager may not have the time to research all of the intricacies of the law, let alone keep up with the constant changes.

A payroll service understands the laws, as well as their application. They often participate in crafting new laws, so they have a deep understanding of the issues. Keeping up with changes is part of their day-to-day routine. This makes it easy for them to avoid mistakes that can lead to fines and back payments.

Expert Guidance

As your business grows and changes, you’ll need advice on future payroll issues. It’s unlikely that your payroll manager will have the experience to help guide that growth.

A payroll service handles clients of all sizes and stages of growth. This gives them unique insights into the challenges faced by businesses. This insight can prove invaluable in helping you steer your company into the future.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Service Provider, Outsourced Payroll Service, Best Payroll Calculator, Payroll Deductions, Dependable Payroll Service, Payroll Tax Laws in Canada, Great Payroll Service Provider, Small Business Operations, Small Business Payroll

Why Hiring a Payroll Clerk May Be the More Expensive Option

Posted by Stacey Duggan

|

Oct 21, 2013 9:00:00 AM

Why Hiring a Payroll Clerk May Be the More Expensive OptionAs a company grows, it becomes necessary to find a permanent solution to payroll processing. With the many details, regulations, procedures, and filings involved with payroll processing, delegating payroll responsibilities to an existing employee, or trying to take care of it yourself, becomes an unsatisfactory option. Some business owners or managers try to solve the payroll puzzle by hiring an in-house payroll clerk. This solution is probably better than trying to manage payroll yourself, but it has some serious drawbacks.

HR Overhead Costs

When you hire a payroll clerk, you take on numerous new overhead costs. First off, there's the cost of hiring, which includes advertising the job, reading through resumes, interviewing, and getting your new employee integrated in your payroll system. There's training to consider, which could involve off-site training, courses, and conferences to get your new employee up-to-speed with current payroll regulations. Your new payroll clerk needs a place to work, equipment, and software. Additionally, you'll need to consider the costs you incur with a new employee: benefits, insurance premiums, your portion of CPP contributions and EI premiums, and paid vacation and sick days.

Vacation/Sick Days

Payroll never sleeps. Your employees need to get paid, and your government remittances must be submitted continually, whether or not your payroll clerk gets sick, takes a vacation, or needs personal time away from the office. Remittances must be sent in on time if your company is going to avoid fines levied by the CRA, and a single payroll clerk managing payroll processing for a whole company may have a hard time meeting every single deadline. Outsourced payroll processing, on the other hand, can manage payroll no matter what. They can guarantee that everything will be done in a timely fashion, and they don't require vacation days or sick leave.

Turnover

A good payroll clerk may get a firm grasp on everything it takes to manage your payroll effectively. Getting to this point takes time and consistent effort because payroll is complicated, and the regulations change from year to year. What will you do when your expensive, painstakingly trained payroll clerk gives notice and leaves your firm? You'll be back at square one, looking for a new employee who doesn't understand the ins and outs of your company and may require substantial training before you can feel comfortable with the state of your payroll again.

These problems can be avoided by turning your payroll processing over to an outsourced payroll processing company rather than hiring your own clerk. With outsourced payroll processing, you don't have to worry about adding to your HR overhead costs. Payroll won't require any square footage of your office space, it won't require that you buy any new equipment or specialized software, and you won't have to pay additional employee benefits. You also won't have to worry about the state of your payroll when someone wants to take a vacation. You'll just know that it always gets done faithfully, no matter who is in (or out) of the office. Finally, there are no turnover worries when it comes to outsourced payroll processing. Although your contact at the outsourced payroll processing company could change from time to time, your payroll will always be handled professionally and in a timely manner. Compared with outsourced payroll processing, hiring your own in-house payroll clerk may be the more expensive option.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Service Provider, Outsourced Payroll Service, hire payroll service, Best Payroll Calculator, CRA, payroll solution, Dependable Payroll Service, Employee Training and Development, Great Payroll Service Provider, Hiring a Payroll Clerk, Payroll Expertise

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

5 Reasons Businesses Dread Processing Payroll

Posted by Stacey Duggan

|

Aug 27, 2013 10:00:00 AM

Reasons Businesses Dread Processing PayrollIt's no surprise that processing payroll is toward the bottom of the list of tasks that business owners like to do. In fact, it wouldn't be a stretch to say that most business owners dread processing payroll. On the surface, processing payroll seems like a fairly simple and straightforward business responsibility, but anyone with payroll experience knows that there are reasons to dread it. Here are five.

1. Paperwork.

There might be a few people out there who enjoy paperwork, but if you feel that there are never enough hours in the day, paperwork can be a real thorn in your side. And with payroll processing, the paperwork is endless.

From the moment you hire an employee, you have to start keeping track of paperwork for that person. Not only do you have to stay on top of deductions, taxes, and contributions for each employee every pay period, but you also need to keep accurate enough records to complete end-of-year reports for the CRA. It takes an organized person with solid systems to keep all of this paperwork straight.

2. Deductions.

It's the employer's responsibility to deduct Employment Insurance premiums, Canada Pension Plan contributions, and income taxes from the employees' paycheques. Each of these deductions has its own formula and its own rules, and the employer is responsible for correctly figuring out each amount.

The CRA has an online calculator to help employers with these calculations, but pay close attention to the disclaimers: "You assume the risk associated with using this calculator," and "The reliability of the calculations produced depends on the accuracy of the information you provide." Therefore, you can't use the online calculator as an excuse if you end up with mistakes in your deductions.

3. Remitting.

Once you've finally figured out how much to deduct from each of your employees' paycheques, it's time to face the next dreaded task: remitting the deductions to the CRA. Monthly payroll deductions are due the 15th of each month, and your remittance needs to arrive on time. If it's just a day late, you'll face a fine, which we'll talk about next.

4. Fines.

If the CRA finds that your business is not properly remitting CPP contributions, EI premiums, and income tax, your business will be fined. If this happens more than once in a calendar year, the CRA will levy an additional fine. These fines can be a huge hit to your company's bottom line as well as to your morale as an employer.

5. Changing laws and regulations.

Many small business owners find that over time they can get the hang of payroll processing. It can become part of their daily, weekly, and monthly routines. But then, as new laws are passed, the rules change, and they find themselves back at square one. Laws related to payroll processing change frequently, and it can be quite difficult for harried business owners to keep on top of all the changes.

One solution to handling these dreaded payroll processing tasks is to turn your payroll tasks over to a third-party payroll service provider like The Payroll Edge. These services are experts in the details. They know the laws and rules, and they have systems in place to keep your business running smoothly.

7 Signs It's Time to Outsource Payroll

Topics: Payroll, Employee Payroll Deductions, hire payroll service, Payroll Calculator, CRA, Payroll Deductions, Great Payroll Service Provider, CPP, EI, Employee Payroll Tax, Small Business Payroll

Three Big Mistakes with Employment Contracts and Policies

Posted by Ray Gonder

|

Jul 17, 2013 10:30:00 AM

Employment Contracts and PoliciesA business with thoughtful and up-to-date employment policies is a business that runs well, even when it faces personnel turnover and industry changes. If you're uncomfortable setting and enforcing employment policies, you may find your business in a constant state of confusion or crisis. Even worse, you could find yourself on the wrong side of the law, facing fines or court cases if your employment policies are not in compliance with recent law changes. Let's take a look at three big mistakes that businesses make with employment contracts or policies.

1. Neglecting to State that Severance Payments are Subject to Mitigation in Employment Agreements

In the last year, the Ontario Court of Appeal made a ruling that could be very costly to employers who aren't paying attention. The court ruled that "employment agreements with a fixed severance term are not subject to an employer's implied right to deduct any mitigation earnings received by the employee during the notice period." If you're like many employers, you may have quite a few existing employment agreements that have fixed severance terms. If you want to be able to deduct mitigation earnings that were received by dismissed employees, you need to revise your employment agreements so they specify that severance payments are subject to mitigation. By making this simple change, you can avoid costly expenses in the future.

2. Ignoring Changes in Non-competition Terms

Recent changes to laws regarding non-competition covenants could be costly to your business. Laws continue to change, and if you don't keep up on new and subtle nuances to the law, you could find yourself in a weak position. It's no secret that non-competition covenants are difficult to enforce, but you have a much better chance of success when you use non-competition covenants that comply with the courts’ freshest and most current tests.

3. Neglecting to Review Your Compliance with the Accessibility for Ontarians with Disabilities Act, 2005 (AODA)

If your business employs more than 20 people, you need to pay special attention to AODA compliance. The AODA requires all organizations with 20 or more people to file a Compliance Report with the Ministry of Community and Social Services. This report confirms that your business follows all rules and regulations included in the AODA's Customer Service Standard. But that's not all. Even if your business just employs a single person (you), you need to create and implement an accessibility policy. This policy should include plans for disabilities that affect communication, benefit from the use of assistive devices, or require service animals. The policy should also focus on principles of equal opportunity, independence, integration, and dignity.

Obviously, it's difficult to keep up with employment policies. You're busy trying to keep your business running smoothly. You have plenty to do with your daily tasks without trying to keep up with legislative changes that may or may not affect your business.

A full service outsourced payroll firm can help you keep up with changes in employment policies so you don't have to. At The Payroll Edge, for instance, we ensure that our clients don't run into problems with employment contracts issues like severance plans, non-competition, and AODA compliance because we review their current policies and make updates if they're needed. And if you don't currently have an up-to-date employee policy, we can help you to become fully compliant with all government regulations.

For more information about how The Payroll Edge can help you to avoid costly problems with employment policies, or for information on other payroll and business services, contact us. We'll be happy to discuss your business' individual needs and make a customized plan for you.

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

Topics: Payroll Service Provider, Outsourced Payroll Service, Employee Policies, Payroll Calculator, Great Payroll Service Provider, Employment Contracts

Three Top Reasons to Consider an Outsourced Payroll Service

Posted by Ray Gonder

|

Jun 27, 2013 9:00:00 AM

Three Top Reasons to Consider an Outsourced Payroll ServiceDepending on how many roles you play in your company, there could be dozens of reasons to outsource to a payroll service. Payroll is a job that never really ends, so handing it off to professionals allows you to spend more time on running and operating your business. When you are less concerned about government compliance and making sure everyone gets paid correctly and on time, you have less stress and can focus on the more important aspects of your work.

1. Save Time

From the moment you hire an employee, you have payroll responsibilities to manage. As part of the hiring process, you must collect information on your new employees and fill out tax forms in their behalf. At the end of each calendar year, you will fill out T4 forms and send year-end summaries to government reporting agencies. And that doesn't include your ongoing payroll responsibilities.

Each time you process payroll, you will calculate benefits and deductions from each employee's pay cheque, figure out payroll amounts based on tables published for the province or territory in which each employee reports for work, and send remittances to several different government agencies, each of which has its own due date throughout the month.

As you can guess, all of these tasks can take a great deal of your precious work time, time which could be much better spent in the service of managing and growing your company.

2. Reduce Stress

Not only is payroll time-consuming, but it can also be highly stressful. When you handle payroll yourself you must open and operate a payroll account with the Canada Revenue Agency (CRA). Of course, this involves time and energy setting up the account initially, but the real stress comes in your day-to-day operations. Each time you run payroll, you'll have to check contribution rates, maximums, and exemption charts for income taxes, CPP contributions, and EI premiums.

If employees have questions or if the rules and regulations change (which they inevitably do), you have to make adjustments, possibly mid-payroll cycle. If you're not an expert in Canadian payroll, these adjustments can be quite stressful, especially when you consider that if miscalculate, you could face fines.

3. Stay Compliant

And that leads us to a third reason to consider outsourcing payroll service: to stay compliant. When you take care of your payroll yourself, you run the risk of non-compliance. The laws, rules, and regulations surrounding payroll can be confusing, and to make matters worse, they change as laws and guidelines change. The following is an example of why it's important (and difficult) to stay compliant.

A recent minor change could make a big difference for your employees, but many Canadian employers simply don't know about the finer points of payroll tax deductions. If an employer chooses to pay for third-party short-term and long-term disability benefits, the insurance benefits will be taxable. This rule also applies if an employer funds their own disability program. If you choose to fund such a program, as the employer you will claim a deduction on line 229 of your T1 premiums, and you may do so for all premiums paid since 1968 that you haven't previously claimed.

Such fine points of payroll taxes are known only to those who are experts in the field or who spend an enormous amount of time keeping up on all the latest changes to payroll rules and regulations.

If you want to save time, reduce your stress, and stay compliant with Canada's payroll tax laws, it's time to consider outsourcing your payroll service. For more information, contact us at The Payroll Edge. We're ready to help.

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

Topics: Payroll Service Provider, Outsourced Payroll Service, Payroll Service, Best Payroll Calculator, payroll solution, Payroll Deductions, Dependable Payroll Service, Great Payroll Service Provider

How to Do Payroll in Canada

Posted by Ray Gonder

|

Jun 25, 2013 11:49:00 AM

How to do payroll in Canada 2If you were hoping that cutting cheques would be the sum total of your payroll responsibilities, you're in for a surprise. Canadian payroll is a bit more complicated than that. It can be challenging for US-based companies to adapt to payroll methods and guidelines in Canada, since the laws and regulations are quite different. It can also be difficult for new small businesses to get the hang of payroll responsibilities, especially when they're dealing with all the other details of running a small business. To help you get your bearings, we've put together a short (but not comprehensive) list of payroll tasks that you'll be responsible for.

Remittances

Calculating deductions and benefits contributions is time-consuming and tedious because you have to calculate each employee's individual deductions depending on their wages and province of work. Once you've done all of this paperwork, however, you're not done. You still need to remit the deductions and contributions to up to three separate government agencies, which each have their own due dates. If the remittances are not submitted properly, you could be fined.

Year-end Requirements

Your ongoing payroll responsibilities should be accurate throughout the year, but at the end of the year, you're also charged with reporting to tax authorities about the filings made by your company. These filings are from both the employee and employer perspective of taxation. You must also fill out T4 forms for each of your employees with an understanding of how to report certain things like commission and non-taxable earnings.

Employee Inquiries and Ongoing Legislative Changes

Payroll isn’t just paying someone an hourly wage x the hours they work. It’s much more complicated than that. There are taxable and non-taxable earnings, employer and employee benefit contributions, overtime, taxation maximums, vacation, and many, many more variations to consider. Add to that the fact that payroll legislation is a moving target and can change without notification. Managing payroll can be a confusing, time consuming task.

Your employees expect that they are to be paid correctly and on time. A paycheque is at the core of why they are working for you and is continuing incentive for them to do their very best to keep your company productive. Not being able to provide a regular, correct pay or to answer their payroll questions correctly can cause any employee to become disgruntled.

At The Payroll Edge, we can manage the above tasks for you and more. Our payroll experts are always on top of the latest tax-related legislations. They will field your employees' questions and guarantee that your payroll will be done accurately and on-time.

In addition, we offer premium human resource services as well, which can lighten your load considerably. These services include workplace injury claims management; consultation for employee review, conduct, termination, and layoff; and employment agreements, which protect your from legal action.

We know that you're an expert at what you do, but most likely, you're not a full-time payroll specialist. That's where we come in. We have over 25 years of experience with Canadian payroll. We know the ins and outs of the Canadian payroll, and we process over 5,000 pay cheques each week for companies in all Canadian provinces. If you'd like to spend more time focusing on your business and less time dealing with tedious paperwork, give us a call. There's real peace of mind that comes with knowing that your payroll is always taken care of by experts. Instead of staying up late the night before payroll is due every couple of weeks, you can continue to focus on doing what you do best: running and growing your company.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Payroll Tax Calculations, Canadian Payroll Service, Best Payroll Calculator, payroll solution, Payroll Deductions, Great Payroll Service Provider, Small Businesses Payroll, Payroll Expertise

What Makes a Great Payroll Service Provider

Posted by Ray Gonder

|

Jun 6, 2013 2:23:00 PM

what makes a great payroll service providerMany employers consider hiring a payroll service provider when they realize that their time and energy is better spent handling their areas of expertise. Small business owners wear many hats, but if you can delegate payroll to a service provider, you'll be able to focus on areas of your business where you can make a bigger difference.

When searching for a payroll service provider to take over these responsibilities, look for a provider that exhibits the following four characteristics.

1. Dependability.

The Payroll Edge is known for dependability. We process over 5,000 pay cheques every single week for Canadian firms. We've been doing this for over 25 years, so we know all about federal and provincial regulations and how to get your payroll done on time. In fact, we're so confident in our dependability that we guarantee that your payroll will be accurate and on time.

2. A Variety of Services.

Not only do we guarantee your payroll to be on time and accurate, but we also offer a slew of other services. We are more than just a payroll calculator. We know that different companies require different services, so we offer several different packages. If you're looking for more than the basics, try our Premium Human Resource Solutions package. This package takes care of workplace injury claims, Ministry of Labour claims, and consultations for employee review, conduct, termination, and lay off. If you want to pick and choose your services, you can develop your own payroll package from our a-la-carte services.

3. Easy-to-use Reports.

A great payroll service provider makes life easy for you. With The Payroll Edge, we send our clients a simple report outlining the exact pay and deductions for each person on your payroll. All you have to do is review and approve the report. If you find any details that need revisions, you let us know and then get back to work. We handle all the details, such as direct deposits, tax deductions, remittances, and pay stubs. All you have to do is approve one report and pay one invoice.

4. Expertise with Government Agencies.

Our years of experience have given us the ability to work with various government authorities. Many government officials view The Payroll Edge as a recognized authority from our past interactions with them. Therefore, we can handle any problems that arise quickly and smoothly. Our experience and knowledge of Canadian tax laws, combined with our relationships with others in the industry and in the government, are great assets to our clients. We take care of any inquiries or issues that arise, so you don't have to interface with the government agencies involved.

By selecting a dependable payroll service that offers a variety of services, you won't have to spend time and energy taking care of payroll yourself. A payroll service provider that generates easy-to-use reports and handles interaction with government agencies will make your life easier. To find out how The Payroll Edge can help your company, contact us to speak with a representative.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Service Provider, Payroll Service, Payroll, hire payroll service, Best Payroll Calculator, Payroll Calculator, Payroll Deductions, Dependable Payroll Service, Great Payroll Service Provider, Payroll Expertise

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