Payroll services are becoming a more popular option for businesses both large and small, namely because it suits their diverse needs. Small companies especially find it less expensive and less resource draining which translates to smoother process all around. That said, there are a great deal of questions surrounding it, leaving many to wonder if it's an option that suits them. Luckily, we have a list of the most common questions asked about payroll services and all the answers to boot.
1. What Is Outsourcing Payroll?
When you use payroll services, you're partnering with a third-party business that will handle all payroll and HR related duties involved. This means they will not only pay your employees for you, but also handle related taxes, deductions, write-offs, benefits, overtime and vacation pay and more. This is an option beloved by small businesses that simply don't have the people to deal with all the complexities and legal requirements and for large businesses who prefer to focus on their own goals and less on administrative tasks.
2. How Does It Work?
Once you get started, you will be sent a payroll report – this needs to be approved by you and ensures that things like the pay cycle you've decided on are correct. It will also clarify details relating to your policies on holiday pay, any benefits like retirement funds, and more. In effect, they will take care of taxation remittances (for both the employee and your company), allocate appropriate funds to RRSP plans and any relevant employment insurance, arrange for the method of payment and break it all down into a single, simple invoice for you to look over.
3. What Are the Benefits?
Many companies, especially start-ups, new companies and smaller companies, feel bogged down by human resource duties. Anything that pulls them away from their goals is at the least a distraction and at most, a harmful waste of resources, time, energy and even money. Since many businesses can't afford to have a whole team of HR people (and some only have one person, which can lead to costly mistakes and misunderstandings), outsourcing to payroll services is a good option. It simplifies your workload and turns what would be a hundred small tasks into a single review for you. This saves a great deal of time and saves them from otherwise wasting important assets. This also means your legal compliance is covered for you, which is by far one of the most stressful aspects of doing business. Your payroll service will ensure that you're always compliant, even when new laws and regulations are put into place.
4. How Will This Affect My Employees/Workers?
Good payroll services will be able to guarantee that your employees will always be paid accurately and on time, to ensure your system runs as smoothly as possible. Given that this is a large stress for a company of any size, it becomes a huge relief for employees who don't want to worry about late payments or incorrect amounts. This also includes their T4s, ROEs and any other relevant documents as well. Anytime you can lower the stress of your employees and workers, you've made a good – and productive – decision.
5. How Much Does It Cost?
When you consider how much it costs to hire an on-site payroll processor or human resource manager, it's a great deal less. On top of which, when you use payroll services, you're getting a team of dedicated experts in their field to work for you instead of a single person, which takes the pressure off of a small internal department. Given how complex compliance can be, you also save money on would-be lawyers in case of legal troubles related to misclassification or filing problems. Any service worth its salt doesn't include invisible fees either – what you see is what you get, and that offers peace of mind.