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Outsourcing Payroll in Canada? Here Are Some Things You Need to Know

Posted by Corinne Camara

|

Aug 4, 2017 9:00:00 AM

Outsourcing Payroll in Canada_Here Are Some Things You Need to Know.jpgIn many businesses, back-office activities such as payroll, can take up more time than one would expect. It’s not as easy as it seems, especially as a business grows and it’s needs expand. However, there is a solution you should consider: outsourcing payroll.

Download our free guide on what US companies need to know about paying  employees in Canada.

Outsourcing payroll in Canada has many benefits, all that allow you to focus on more important aspects of your business. In many ways, it’s a simple solution that protects your business and helps you grow. If you’re considering outsourcing payroll, here are some things you should know.

Why Should You Outsource Payroll?

There are many reasons why should consider outsourcing payroll in Canada, and they all provide benefits for your business. With strict regulations in place by The Canadian Revenue agency (CRA), having an expert running your payroll is a tremendous asset that limits risks. Saving time, reducing costs, and bringing an expert to your payroll services are just some of the most obvious benefits. From paychecks to federal regulations, you can rest easy knowing all your vital back-end tasks are being taken care of by experts in the field.

Always on Time

Things get busy. It’s completely understandable that payroll not be at the forefront of your business to-do list. However, your employees rely on you for their paycheck. While it might not seem like the biggest concern, regulated payroll keeps your employees happy and your business afloat.

By outsourcing payroll in Canada, you have guaranteed on time payroll processing. No longer will you have to worry about staying on schedule and managing timesheets—it will all be taken care of efficiently and quickly.

Knowledge of Regulations

As mentioned before, the CRA has strict guidelines and regulations for almost every aspect of your business finances. If you don’t think it’s serious, consider that failing to file Record of Employment can get you up to six months in prison, a $2,000 fine, or both. The list of penalties and consequences is long and complex. Not complying with these can get you and your business into some hot water, and as your business grows, the last thing you want is a lawsuit.

Outsourcing payroll in Canada means a professional is ensuring that your business is complying with federal and provincial regulations. They are up to date with legislative changes regarding employment standards and payroll taxation, as well as year-end tax reports. From worker’s compensation to T4s, you will no longer have to worry that your business will be at risk of an audit.

Reduce Costs

To answer the biggest question on your mind, outsourcing payroll in Canada will save you money. In fact, organizations that manage payroll services in-house spend on average 18 percent more than organizations that outsourced these functions. Depending on the size of your business, managing payroll can take multiple employees. The larger the business, the more money to be saved by outsourcing these functions. From accurately tracking employee timesheets, to accurately filing for taxes, outsourcing payroll gives you the upper hand.

Increase Your Productivity

Outsourcing payroll in Canada is easy and effective. It takes some of work off your shoulders, and lets you refocus your energy on more pressing business matters. From expanding your business, building new leads, and improving customer relationships, the last thing on your mind should be payroll. Give yourself a break and your business a boost by letting professionals take care of the back end of your business. From day one, you will see nothing but amazing results.

What US Companies Need to Know about Paying Employees in Canada

Topics: Payroll

5 Canadian Payroll Mistakes That US Companies Make All The Time

Posted by Stacey Duggan

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Aug 1, 2016 9:00:00 AM

5_Canadian_Payroll_Mistakes_That_US_Companies_Make_All_The_Time.jpgLearning how to navigate the payroll process in a foreign country can be a real challenge, even when that country is your neighbour to the north. While the United States and Canada share many business practices, there are some distinct differences in terms of how they regulate payroll management. In order to effectively, and legally, extend your business within Canada, it is essential that you become familiar with some of the unique challenges posed by the Canadian payroll system.

In order to better equip you with the information you need to successfully implement an effective payroll system, here are five Canadian payroll mistakes that US companies make all the time.

1. Not Consulting Best Practices

Canadian payroll Best Practices guidelines are an excellent way to familiarize yourself with the standard procedures for payroll within Canada, giving you a sense of what to expect and what to watch out for as you proceed. The guidelines give you the information you need to make sure you are complying with Canadian regulations, while also giving you the tools necessary to streamline your business by simplifying the transition from US practices to Canadian ones. Having access to the necessary information early on can save you a lot of grief down the road, not to mention time and money.

2. Lack of Familiarity with Canadian Payroll Regulations

The Canada Revenue Agency (CRA) has strict policies and strict deadlines that are unique to Canada, and it is imperative you follow precisely, in order to avoid costly fines and legal problems in the future. Taking the time to research Canadian payroll regulations, and how they differ from those in the United States, is an essential part of establishing a solid Canadian payroll system. That means becoming familiar with tax codes, relevant maximums, exceptions and deductions, and their associated deadlines. The CRA takes violations very seriously, and a lack of familiarity with the appropriate regulations could have serious consequences for your business.

3. Keeping Up with Changing Regulations

In an ideal world, you would be able to familiarize yourself with Canadian payroll regulations and be set for the future, but in Canada, regulations change regularly, and ignorance of those changes does not fly with the CRA. It is expected that if you are conducting business in Canada, you will keep up to date with all relevant changes, and make sure to comply. It is imperative that US companies operating in Canada routinely follow up on CRA regulations, and make sure that they are acting in accordance with the latest information. Failure to do so could lead to serious fines that could hurt your operations in Canada.

4. Correctly Classifying Employees

Making sure that you have given your employees the correct classification, be it permanent employee or independent contractor, is an important part of establishing proper payroll practices in Canada. The CRA monitors employee classification carefully, and misclassification is taken very seriously. Whether you deliberately misclassify a worker, or make an honest mistake due to unfamiliarity with classifications, the financial cost is hefty, with penalties, fines, and interest fees as a consequence.

5. Disorganized Data

While it may seem trivial, making sure that you have all of the proper paperwork in order is an essential part of a smooth transition to conducting business in Canada. Expanding north means new employees, new records, and new data to collect and input. Having your employees fill out the proper paperwork, provincial and federal, in a timely fashion, and making sure you establish an organized system for record keeping, will save you a lot of anxiety in the future. Disorganized records can lead to a host of problems in the future, such as over or under paying employees, which means unnecessary financial burden.

7 Signs It's Time to Outsource Payroll

Topics: Payroll

3 Easy Ways to Improve Payroll Efficiency

Posted by Ray Gonder

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Jul 29, 2016 2:48:45 PM

3_Easy_Ways_to_Improve_Payroll_Efficiency.jpgPayroll is one of the most arduous parts of running a business, requiring huge amounts of time, energy, and money. Payroll mistakes can be costly, both in terms of financial losses, and the time and energy it takes to fix the problem. The best way to avoid any missteps is to have an efficient payroll system in place. The more efficient the payroll system, the less of a drain it will be on the energy and resources that are needed in other areas of your business. Fortunately, while the consequences of a weak payroll system can be high, there are some easy and effective ways to increase your payroll efficiency. In order to make sure everything runs as smoothly as possible, here are three ways that you can maximize the efficiency of your payroll system.

1. Communication and Transparency

Not having a clearly communicated payroll procedure in place is one of the easiest ways for your company to lose efficiency. When employees are unsure of the proper policies or procedures surrounding payroll, they are more likely to make mistakes that could cost your company money, and more likely to need further guidance, taking up time and energy. Clearly communicated policies and transparent procedures gets everyone on the same page, and means less micromanaging and fewer costly mistakes. Clear and accessible policies on issues ranging from how to submit timesheets, to how to claim vacation time, or how to file a business expense, leads to less time being spent on administrative affairs, and more time working productively. Additionally, greater transparency can instill a deeper sense of trust between you and your employees, as they are given a clear understanding of how payroll operates, as well as the part they have in the process.

2. Keeping Up With Payroll Regulations

Canadian payroll regulations are constantly being updated, and in order to improve payroll efficiency, it is imperative that your company is both familiar with the tax and payroll codes already in place, and is keeping abreast with the changes that are coming into effect. While it is certainly tedious to have to regularly research updates on payroll regulations, missed deadlines or payroll errors based on outdated information can incur costly fines, and can burden your business with legal complications that could seriously impede the regular flow of operations. Checking regularly with the Canada Revenue Agency (CRA) to make sure that your company is up to date with payroll regulations is the safest bet when it comes to running your business as efficiently as possible.

3. Outsourcing

Outsourcing payroll to a Professional Employer Organization (PEO) is one of the best, and easiest, ways that you can deal with the difficulty of managing payroll, while also making your company as efficient as possible. From maintaining constant compliance with legal regulations, to hiring and negotiating salary with new employees, managing payroll is a huge responsibility, and one that comes with many potentially costly pitfalls. PEOs alleviate the burden, taking on payroll, HR, and all of the legal complications. Many of the problems mentioned earlier, which hinder payroll efficiency, like lack of transparency or the difficulty in navigating payroll regulations, become the responsibility of the PEO that specializes in these areas. While outsourcing to a PEO means paying a flat monthly fee, in the long run, they can save your business a lot of money and a lot of stress, while affording you the opportunity to invest that energy in the places it is needed most.

 7 Signs It's Time to Outsource Payroll

Topics: Payroll

Should You Keep Your Payroll In-House or Outsource It?

Posted by Karen McMullen

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Jul 15, 2016 9:00:00 AM

Should_You_Keep_Your_Payroll_In-House_or_Outsource_It.jpgThere are certainly many points to consider when deliberating over keeping an in-house payroll department or outsourcing it. The first thing you should consider is how you view the role the payroll department plays within your business. In-house payroll can provide valuable insight on your workforce, giving you the flexibility to adjust the process to meet your team's needs on the fly. You’re also going to have immediate access to all the data you need to make informed decisions and improve your business.

Outsourcing is of course going to give you more time to focus on other tasks and it will simplify the process on your end. By partnering with a third party, you won't have to keep tabs on regulatory changes, filing taxes, and hiring additional people to fulfill HR functions. Read on as we look at these pros and cons more in depth.

Flexibility

Situations where you need to update payment agreements, such as collective bargaining agreements, might require that you have greater control over your payroll than if you were to outsource to a third party. When you need to make changes or adjustments in between pay cycles, handling it internally will give you that flexibility. Many outsource providers lack the ability to accommodate the unique needs of small-to-medium businesses. It might be in your best interest to go it alone, and there are always tips to improve payroll when you're handling it internally.

Better Grasp of Your Payroll Data

A third party provider won’t be available in the same way your own database will be. Access to historical data may be necessary for the unique needs of your business, and nothing can waste time like the ongoing back-and-forth between you and a provider. When the data is available within your office walls and managed by your team, you’ll have a better idea of what your financial needs will be. Finally, if security or privacy is a concern, you're going to want to invest in an internal HR department so you don't have to be anxious about sending sensitive data to an outside company.

Outsource and Save Time and Money

All of that flexibility and control mean nothing if you don't have skillful employees ensuring no mistakes are made. Costly paycheck errors, missed deadlines, and improperly filed taxes can use up all those resources you thought you'd be saving by doing payroll yourself. Outsourcing will give you a team with expertise that you might not otherwise have access to, especially if you're a small business. You can bet that expertise will lend itself to broader areas related to HR, saving you even more time and money.

Of course, the major benefit of outsourcing is the time saved by sending all the paperwork to a third party provider. You're going to have the time to focus on your core vision and the growth of your company without being bogged down by the stack of files left on your desktop. You can rest assured that your financial needs will be handled by capable professionals who are up to date with the latest legal regulations and legal compliance.

7 Signs It's Time to Outsource Payroll

Topics: Payroll

3 Steps to Increase Efficiency in Payroll

Posted by Karen McMullen

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Apr 15, 2016 9:00:00 AM

3_Steps_to_Increase_Efficiency_in_Payroll.jpgAs no doubt any company will tell you, payroll is one of the most complicated, time consuming, and expensive non-core aspects of doing business. As the market transitions into a more fluid place (focusing on contingent and independent contractors more and more), it only gets more complex. This has a lot of companies desperate for easier answers, something that can help them streamline, simplify—anything to increase efficiency in payroll. Luckily, there are steps that can be taken.

1. Communication and Transparency

As with most areas of business (and life, for that matter), transparency and communication can go a long way to increase efficiency in payroll. For starters, a clear calendar or schedule shared with all employees can ensure they're well aware of their pay schedules, due dates for invoices or receipts or any other business expenses. Be clear about your policies and make sure everyone is well aware of the rate of holiday pay, or what missed hours will amount to. This can help ensure that everyone knows the process of expense reimbursement and your payroll employees can spend less time answering questions posed by confused workers and more time focusing on the tasks at hand.

It's also generally a good idea to encourage your workers to record their attendance hours, verify expenses, and follow-up to ensure any time they've booked off has been entered properly into the system. To increase efficiency in payroll, we have to consider the details—how much time do you think is taken up by minor requests, avoidable confusions, and common questions? By making everyone a part of the process, you take a great deal of pressure off of your payroll staff and save them a massive amount of time.

2. Digitize as Much as Possible

We're living in the digital age, there's no question about that. In response, many businesses have started digitizing their peripherals—things like payroll and human resources practically live on the computer, and there's a good reason for that. Unlike the days of old, where looking up old receipts and filing pay information meant stacks of paper in dusty boxes, we can cross-reference easily, making a lot of things a great deal simpler. If you haven't begun the transition, you should consider it now.

While many companies have begun following this lead, there are a few things those same companies haven't considered that could save a great deal of time. Consider offering or switching to direct deposit for payroll instead of traditional cheques. When direct deposit is in use, accuracy tends to go up and that means liability and mistakes go down. For those who would prefer to keep cheques, consider using a processing system to do digital cheques—manually writing them out can take a long time and errors are easily made.

Consider including payroll information in a shareable format, so employees are able to check their files anytime they please. This can greatly reduce concerns they may have, and means they'll be fielding less distracting questions, since they'll be secure in their knowledge and can access it whenever they want.

3. Engage a Payroll Service

Given just how vital it is to increase efficiency in payroll, many companies have considered even bigger changes and that's how they find themselves working with a payroll provider instead. When you consider how expensive it can be to maintain the amount of payroll experts you need to operate, outsourcing becomes an attractive option. For a set fee, you're getting the expertise and assets of a whole team of specialists. This means up-to-date information, a higher accuracy rates regardless of the complications, and the best software money can buy. It doesn't just increase efficiency; it takes the whole headache out of the equation, leaving your company to focus on its goals and not its details.

7 Signs It's Time to Outsource Payroll

Topics: Payroll

Why Payroll Is One Function You Definitely Should Outsource

Posted by Shannon Dowdall

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Mar 30, 2016 10:30:00 AM

Why_Payroll_is_One_Function_You_Definitely_Should_Outsource.jpgMore businesses than ever have been considering outsourcing their non-core activities—things that are integral to the company, like human resources and payroll, but don't actively further the companies goals or objectives. Payroll is one such activity that is gaining incredible popularity in the outsourcing world, to the great benefit of those who try it, whether they're a small company or a massive corporation.

That said, some are still skeptical—how does it work? What benefits does it offer exactly, and what's the difference between in house and outsourcing? It's understandable—any big shift in a business is worth researching before making a decision and the case for outsourcing payroll is no different.

It's More Cost-Effective

There's a persistent myth that in-house processing is less expensive than outsourcing, but when you consider the amount of resources required to address all things related to payroll and human resources, many tend to come up short.

Instead of hiring a full team, which is beyond the budget of many smaller companies, consider that when you outsource, you get the wealth of experience of every worker there—effectively, a larger team for less money. This also means you save money on training, full-time salaries and turn-around. A service provider offers a fixed rate on a scheduled basis (established at the get-go) with no hidden fees. What you agree on is what you pay, no surprises. 

Save Time and Resources

Probably one of the worst problems with payroll is the amount of time it can take. In terms of time, it can make payment processing all the more expensive. When you consider all the factors that go into a single paycheque, it's no wonder companies are crying out for a solution. There are remittances, taxes, employment insurance, retirement funds, benefits, vacation pay, deductions, and garnishments to worry about—plus, each cheque is different. They also need to go out on the same schedule, which means once the process is over, you'll have to start preparing for the next one.

When you outsource, you can stop worrying about all that time and better allocate those saved resources on more goal-oriented tasks. This might mean moving employees into areas where they can use their specializations to better effect, padding a more critical department, or using that time saved to strategize your next move.

Minimize Your Legal Risk

A lot of people argue that when a company's needs are straightforward, there's no need to outsource at all. While that might be true for some, it follows the assumption that a company’s needs will never change, nor will the laws associated with them. In truth, payroll law and all regulations related to it can change on a minute's notice, often shifting from year to year. This means it can be a struggle to stay current, especially regarding changes that might effect the way you process payments.

When you outsource your payroll, you're entrusting your legal compliance to professionals who stay knowledgeable on policies, and can adjust in no time. This means less risk of errors and mistakes for you, which in turn leads to less fines, penalties, or even jail time for violations of the law.

Maintain Full Control

With good reason, many companies are concerned about losing control over their pay schedule or human resources departments when they decide to outsource. They imagine that they'll have no more say, which is critical in such a core aspect of business. Thankfully, that's not the case. A good provider will be in constant communication to ensure that all tasks done are done to the specifications of the company itself. You make the rules, they follow your directions.

Consult with a provider today and find out how outsourcing can help your business.

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

Topics: Payroll

3 Common Questions about Outsourcing Payroll, Answered

Posted by Karen McMullen

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Feb 26, 2016 9:00:00 AM

3_Common_Questions_about_Outsourcing_Payroll_Answered.jpgOutsourcing payroll is becoming a more discussed topic every day, especially as companies look for good ways to increase efficiency while protecting their bottom line. For small businesses and large, they're finding that their diverse needs tend to put a strain on their in-house payroll processing and perhaps an even greater strain on the payroll employees themselves. That's why more curiosity has been piqued in terms of outsourcing payroll altogether, and why so many questions have come up. Luckily, we have those answers for you.

1. How Does It Work?

For starters, outsourcing payroll involves partnering with a third party payroll service that will be handling all payroll and related HR duties. They will pay your employees on your behalf, handle taxes and deductions, write-offs and benefits, manage overtime and vacation pay, and a lot more with relative ease.

When you begin, you'll be sent a payroll report – it will need to be approved by you and your company to ensure that all the information is correct. It will include things like the pay cycle and details relating to holiday pay, any benefit payouts necessary, and other things of that nature. Once that's settled, they can begin processing according to your exacting specifications, even taking care of tax remittances for both your employees and your company, allocating funds to RSPs, insurance, etc., and to top it all off, everything will be broken down into a single, simple invoice for you.

2. What Are the Benefits?

One of the trickiest things for small businesses and start-ups is balancing their resources in an effective way, because they are vastly goal oriented, but don't have the budget to justify seemingly peripheral expenditures. That's why so many have begun outsourcing payroll altogether. Because there is a full team dedicated to your account, you can get the benefit of a number of experts rather than relying on one or two in-house people to handle everything. This is especially intriguing to small businesses that can rarely afford the resources required to handle everything with the same grace and efficacy. After outsourcing payroll, a great deal of companies find that they're able to save a massive amount of time, resources, and money and are able to put their workers towards more important and critical operational tasks, thus increasing their efficiency and often, their revenue.

On the legal side of things, your payroll service is also well informed when it comes to compliance and law, which means fewer mistakes and fines and less liability for you.

3. How Much Does It Cost?

Human resources and payroll, generally, take up more money than any other single department, regardless of the size of the company. Given how much there is to worry about, it's no wonder. Not only are they meant to process complicated pay cheques on a regular basis, but they also have to consider taxes at tax time, manage contracts and vacations, firing and hiring, severance, and more—all while remaining fully legally complaint to boot. Having even only one person on-site is expensive, and with only one person, things are getting done with less efficiency than you'd prefer.

Consider what it would cost to hire a team of lawyers, or to hire a full human resources or payroll department. These are largely expensive areas, despite how necessary these areas of expertise can be on a regular basis. When you consider outsourcing payroll, you're considering the alternative to that, which is to hire a single group to manage everything on your behalf, including the legal aspects. You're saving money in three expensive areas while still benefiting from the same experience. The fee you pay is flat and comes with no surprises – it's important to remember that any good service wouldn't include hidden fees and that's the sort of comfort your bottom line would be happy to see.

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

Topics: Payroll

3 Reasons Why You Should Outsource Payroll in 2016

Posted by Corinne Camara

|

Feb 24, 2016 9:00:00 AM

3_Reasons_Why_You_Should_Outsource_Payroll_in_2016.jpgAs the owner of a business, you no doubt know that payroll is by far one of the largest expenditures (and headaches) a business faces. That's why more and more companies are choosing to outsource payroll instead of doing it in house – it frees up their current workers to do things that further help the business in terms of operations and goals, instead of inefficiently hacking through mountains of peripherals instead.

There are still some businesses that need convincing, however – questions about its cost and benefits come up a lot, and of course they do. As a business owner, it's important to carefully consider all your options and their benefits before jumping into anything. That's why we've gathered together the top three reasons people outsource payroll in one place, to help those on the fence see just what it is they're missing.

1. Cost Savings

First and foremost, almost every business is looking for a way to cut costs – not just in terms of saving money, but being able to use that money in a more effective way is a top priority. In-house payroll processing and human resources duties are expensive, and often costly in terms of time, resources, and energy. For small businesses, they simple can't afford to pay a team to manage it all for them and that leaves them with few options. While some opt to hire a single person full- or part-time, others try to manage it themselves on top of various other duties, which can lead to mistakes, or otherwise pull them away from more important tasks.

When you outsource payroll to a third party organization, you pay a single flat fee that covers the whole of your needs – whether you have a hundred employees or only five. You not only save money in terms of payroll processing and human resources duties, but you also gain the benefit of expertise that's otherwise expensive in a full-time individual and the knowledge of a legal team as well. It also leaves you with the ability to focus on what's most important, without worrying about wasting your assets in ineffective ways.

2. Legal Compliance

One of the most difficult aspects of every business is probably legal compliance. Every step a business takes is guided by myriad rules and regulations, policies, and laws – it's impossible to get away from it. When it comes to processing payroll, even the best of us are guilty of a few mistakes, because there's so much to consider – deductions and remittances, tax deadlines, wages and employee records, working with the Canadian Revenue Agency and ensuring that employees who work hourly are paid for the correct amount of hours. It never ends!

When you outsource payroll, you're not just getting payroll experts, you're getting legal minds as well. This is a team of highly trained, specialized individuals who place a high emphasis on compliance, and keep up to date with the constantly changing laws in a way that many businesses can't afford in terms of time or money.

3. Efficiency

When processing payroll takes up so much time, a lot of other things can be put on hold. This can be a distraction for a lot of businesses, especially small and growing ones, and leave them hassling with bureaucracy and paperwork instead. Consider instead that outsourcing can help you take that time back. When you have a third party focusing on your payroll on your behalf, you can put your people to better use in more creative and innovative roles. In the time it might take an in-house employee to handle even a few complex operations, a payroll organization will have completed it all to your satisfaction. And in the end, time is money.

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

Topics: Payroll

Why SMBs Are the Winners with Outsourced Employee Payroll Services

Posted by Karen McMullen

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Feb 22, 2016 9:00:00 AM

Why_SMBs_Are_the_Winners_with_Outsourced_Employee_Payroll_Services.jpgIt used to be uncommon for small and medium-sized businesses (SMBs) to outsource their payroll processing services to another company for one simple reason: the needs of small businesses never seemed to be big enough to justify outsourcing employee payroll. These days, payroll management has changed quite a bit. Large corporations aren’t the only organizations that benefit from using outsourced payroll services—in fact, small businesses may actually benefit more from using outsourced payroll solutions than big companies!

Here are just a few of the most important features that outsourced payroll services provide to small businesses.

Timely & Accurate Payments

Employee pay cheques are delivered on time and without errors. This may seem like a basic feature of outsourced employee payroll processing, but it’s easily the most important! Employees won’t trust the company (and won’t want to continue working there) if they have no reassurance that they’ll be paid on time.

Onboarding

A payroll provider will handle the onboarding process for new employees. This includes pay negotiations, contracts, confidentiality agreements, insurance package information, and benefit package organization—all the normal stuff that an entire HR department might have to do!

Compliance

A payroll provider will monitor legislative changes in employee regulation and taxation, and alert each business when pertinent legislative changes are about to take place.

Businesses that operate internationally really have a tough time with employee payroll tasks, and not just during tax season. A company based in the U.S. that employs Canadian workers, for example, has to be able to comply with federal and state regulations in the U.S. and federal and provincial regulations in Canada. Outsourcing payroll to a service that specializes in international management is the easiest way to ensure compliance in both countries.

HR Management

A payroll provider will handle HR management—even when it goes beyond basic payroll processing. This includes management of sensitive employee information, such as medical or disability information.

Another benefit here of outsourcing HR management is that you never have to worry about gossip within the company (because although most HR workers are professional, there will always be a few exceptions).

When you partner with a payroll provider, you’ll have reassurance that no employee leaves the company with valuable and sensitive information about the business itself and about individual employees. Again, you never want to think that your employees will steal valuable information—but you also never want to risk it. Outsourcing your payroll processing ensures that important information is stored safely and never misused.

So if you consider yourself part of the SMB community, it’s time to look at your own business and payroll and ask yourself how exactly an outsourced employee payroll provider can benefit your business.

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

Topics: Payroll

The Best Business Decision You'll Ever Make: Outsource HR & Payroll

Posted by Shannon Dowdall

|

Feb 17, 2016 9:00:00 AM

The_Best_Business_Decision_Youll_Ever_Make_Outsource_HR__Payroll.jpgLet's be honest – it's a new year and one of our main resolutions is always to save money. The same goes for individuals and businesses alike, but as we creep away from the new year, many of us are already faltering. The bottom line is a major focus for everyone, but it can be a far greater challenge as the owner of company when it comes to deciding where to cut costs. Many businesses, especially small ones, are already looking at thin margins but can't afford to cut back on their basics – their employees and operating costs, marketing, infrastructure – all of these things are necessary and difficult to downsize.

Knowing this, however, there are a few areas everyone can cut costs, and those areas are human resources and payroll. By a large margin, payroll and HR usually take up the largest chunk of the budget, whether you're a small business or a massive, multinational corporation. That said, so many aren't sure how to cut those costs because although they're considered peripherals, they're also extremely important to the operation of a business. The solution? Outsource HR and payroll, increase efficiency, and save money.

What Are the Benefits?

Simply put: cost savings. For companies that handle human resources and payroll in-house, they find it can be a massive budget drain. When you outsource, however, you're gaining the benefit of a large, focused team that not only simplifies those concerns, but also generates efficiency like no one else can. Instead of paying the full-time salaries of a few, or even a dozen people, you pay a flat rate based on what you need each month and nothing more. You’ll have a team of dedicated professionals working with top industry standards to ensure the job is done correctly. Imagine what a low-cost solution could do for your budget – businesses can funnel those extra savings into more important areas, like operation costs, perks for employees, anything that helps them get closer to obtaining their goals. And what business couldn't use a bit of extra money?

Naturally, when making any major decision, cost can't be the only thing considered. Luckily, there are myriad benefits to making the switch to outsourcing HR. For example, many companies feel they waste a great deal of time and resources on human resources duties – companies want to be able to focus mostly on their prime objectives and operation and spend less time on internal management. On top of which, many businesses simply can't afford to have more than one or two people managing payroll and HR, which means even more time as a small team becomes bogged down with everything that's involved. When you outsource HR duties, you're able to simplify your workload immensely and put those people to better use elsewhere. You can take back all that wasted time and turn it into pure efficiency.

By partnering with a back office solutions provider, you're not just getting a payroll expert, you're getting a legal team and an HR team as well. We know that mistakes can be costly and incredibly damaging to your time, wallet, and even reputation when they occur, leaving you open to liable or even legal action by the government in the case of taxes and required deductions. You'll find that laws change, sometimes month to month, and regulations are always being added and subtracted – it can be hard to keep up. When you outsource these concerns to a third party, they're the ones who have to worry about it and they do. That's why they remain fully up-to-date on all new regulations that occur and ensure that they are constantly learning. That means you're gaining peace of mind that's nearly invaluable, ensuring that you remain compliant across the board.

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

Topics: Payroll, human resources

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