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How to Avoid Costly Mistakes with a Canadian Payroll Calculator

Posted by Ray Gonder


Feb 7, 2014 9:00:00 AM

How to Avoid Costly Mistakes with a Canadian Payroll CalculatorWhen dealing with Canadian tax withholdings and remittances, mistakes can cost you a fortune in fines and back payments. US-based businesses are more likely to make mistakes, as they usually aren’t as familiar with Canadian tax laws. A Canadian Payroll Calculator can help you spot the most obvious errors, and make sure that you’re withholding enough taxes from your employees’ paychecks. Using a Canadian Payroll Calculator will help you determine how much to withhold from standard employees in typical situations. However, since you will probably have some non-standard employees working in atypical situations, a Canadian Payroll Calculator can’t replace the advice of a professional payroll service.

Not for Every Employee in Every Situation

To give accurate results, a Canadian Payroll Calculator must be using accurate information. Typically, they use a standard algorithm, designed to fit the majority of employees. However, given the complexity of Canadian tax laws, and the wide variety of employee and job designations, there is no calculator that can foresee every possible scenario. To account for this, the person using the calculator must have a strong understanding of the law, and how it’s applied in the real world. Without that understanding, the results from the calculator won’t necessarily apply to every employee in every situation.

Guidance, not Advice

A Canadian Payroll Calculator shouldn’t be used in place of advice from an experienced professional. A calculator should typically be used to double-check results that you’ve already determined using the withholdings information provided by the Canadian Revenue Agency. Using the rules they provide, you can determine the withholdings for an employee, and then check for any discrepancies using a Canadian Payroll Calculator. If there are discrepancies, you know that there’s a problem with either your calculations, or how your employee is classified.

Checking Your Work

Of course, identifying where any errors exist requires you to know and understand Canadian tax laws. Without that knowledge, it will be impossible to find anything other than basic arithmetical errors in your tax withholdings. You’ll be looking for a needle in a haystack—without knowing what a needle looks like. The kind of knowledge required to do advanced error checking only comes from constant experience with Canadian tax laws. Unless you have the time to devote to gaining that experience, you’ll always be at risk for unseen errors. Considering how much those errors can cost you, it’s probably not worth the risk.

Seek Professional Help

To avoid potential fines and back payments, you should consider using a Canadian payroll service. These experienced professionals deal with Canadian tax law every day. They also deal with the people who are applying those laws in the real world. That combined experience gives them a deep understanding of the intricacies of Canadian tax laws. They can quickly and accurately calculate all of your withholdings and remittances, with little risk of under- or over-payments. They can save you money immediately thanks to their speed and accuracy, and in the future by avoiding audits and associated costs.

Canadian Payroll Tax Deduction Calculator

Topics: Payroll Processing, Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Canadian Payroll Deductions, Payroll Calculator, Canadian Payroll Calculator

Why a Canadian Payroll Calculator Can Be Your Best Friend

Posted by Stacey Jones


Jan 28, 2014 10:25:00 AM

describe the imageWhen trying to navigate the complexities of Canadian payroll laws, it’s good to have a friend on your side. A Canadian payroll calculator can be that friend. For US-based businesses, Canadian laws can be especially cumbersome and difficult to overcome. Like a good friend, a Canadian payroll calculator can offer advice, guidance, and encouragement. That advice and guidance can keep you from making costly mistakes, while encouragement can keep you going even when complying with the laws seems impossible. There are a lot of tools you can use to ease your Canadian expansion, a Canadian payroll calculator is one that will make it feel like you have a trusted friend in your corner.

Advice When You Need It

Sometimes, you just need to know if you’re on the right track. A Canadian payroll calculator can help you determine if your withholding calculations are near the mark. By entering some basic employee information, you can get an overview of the most typical tax situations in different provinces. While it can’t give you information on every possible scenario, a Canadian payroll calculator can give you a good starting point for the most common tax situations. Best of all, like a trusted friend, a payroll calculator is available whenever you need it. You don’t have to wait for business hours, or make an appointment—just open the calculator and start getting help.

An Ounce of Prevention

Like a good friend, a Canadian payroll calculator can help keep you from becoming your own worst enemy. If the advice it gives varies wildly from your own calculations, then you should double-check your numbers. It’s possible that you’re entering erroneous information, or misinterpreting some aspect of the law. If you ignore the advice and stick to your own numbers, you may be opening yourself up for future legal consequences. While the calculator won’t be right in every instance, broad discrepancies should be thoroughly investigated. If you can’t decide between your numbers, and the numbers the calculator gives you, then it’s time to consult a professional.

In Over Your Head

A good friend will tell you when it’s time to talk to an expert. If a Canadian payroll calculator is consistently showing that your numbers are off, that’s an indication that it’s time to get professional help. There are a lot of complexities to Canadian payroll law, and it’s possible that you’re missing something important. The calculator has no way of knowing if it’s a worker classification problem, a job-site location issue, or a simple arithmetical error. All it can do is take the information you give it, and provide its best guess based on the most common regulations. For anything beyond that, you need to talk to a payroll professional.

In this Case, Good Friends are Easy to Find

Fortunately, it’s easy to find other trusted friends for your corner. A professional payroll service, like The Payroll Edge, can handle all of your Canadian payroll needs for you. They have a highly-trained, highly-experienced staff of payroll professionals. With their help, you’ll speed up your payroll process, while also minimizing the chances of an audit or penalties. Using a professional payroll service takes all of the guesswork out of handling your payroll, while also freeing up your staff to handle other tasks. While a Canadian payroll calculator can help you do it yourself, a payroll service provider can do it for you.

Canadian Payroll Tax Deduction Calculator

Topics: Payroll Service Provider, Canadian Payroll, Canadian Payroll Service, Best Payroll Calculator, Payroll Calculator, CRA, Canadian Payroll Calculator, Payroll Tax Laws in Canada, Full Service Payroll Provider

What’s The Best Canadian Payroll Calculator?

Posted by Stacey Jones


Jan 17, 2014 1:40:00 PM

What’s The Best Canadian Payroll CalculatorLike a personal income tax calculator, a Canadian Payroll Calculator, like the one here can be a handy tool for determining if you’re on the right track with exemptions and withholdings. However, like a personal tax calculator, a Canadian Payroll Calculator is no substitute for the assistance of an experienced professional. If an online calculator could replicate professional experience, there would be no more need for CPAs, accountants, or tax attorneys. As things stand, calculators are limited by the knowledge and experience of the person using them. If you make an incorrect entry, or don’t fully understand how to apply the thousands of different rules and laws, then the output will be inaccurate. With personal taxes, this could result in an audit, fines, and back payments of thousands of dollars. When handling payroll for dozens or hundreds of employees, the costs could increase exponentially.

No Substitute for Experience

Let’s face it – payroll laws are complicated, no matter what side of the US-Canada border you’re on. If you happen to operate on both sides, then the complications are doubled. Payroll professionals spend years learning all of the intricacies of the law, and even that robust knowledge can’t prepare them for everything. When new laws are adopted, there’s no way for the authors to foresee every possible situation. When unique situations arise, applying the law correctly requires experience with previous, similar, situations. You can’t get that experience from just an online Canadian payroll calculator.

Payroll professionals handle every conceivable situation, week in, and week out. Every day is spent gaining more experience in the application of payroll regulations. While you or your payroll department may spend a few hours each week on payroll, payroll providers do it every single day. This level of experience allows them to quickly and accurately handle the most complex payroll needs.

Get Additional Value from A Payroll Provider

For US businesses operating in Canada, payroll regulations are just one of many day-to-day issues that must be dealt with. Maintaining a physical business presence, government accounts, insurance, and workplace compliance are a few more. Trying to manage the legal requirements of a business on both sides of the border can tax your resources and exhaust your staff. And, if you make any mistakes, the costs can quickly offset any profits you’ve enjoyed. No Canadian Payroll Calculator can tell you if you're handling your legal compliance correctly.

Payroll service providers in Canada also operate as Employers of Record (EOR). Performing the same functions as a Professional Employer Organization (PEO) in the US, an EOR makes it easy to manage your business from a distance. Instead of paying to set up your entire business organization north of the border, you pay the EOR, which already has all the business resources you need in place. Instead of spending your valuable time jumping through legal hoops and dealing with multiple layers of bureaucracy, you actually spend your time running your business. The EOR has the expertise and experience to handle all of the legal requirements, while you focus on the things that make your business successful.

Canadian Payroll Tax Deduction Calculator

Topics: Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Canadian Payroll Deductions, Payroll Tax in Canada, Canadian Payroll Regulations, Employer of Record, Payroll Calculator, CRA, CRA Payroll Tax, Canadian Payroll Calculator

5 Ways Outsourced Payroll Processing Saves You Time

Posted by Stacey Jones


Jan 6, 2014 9:00:00 AM

5 Ways Outsourced Payroll Processing Saves You TimeIn business, time is money. Every minute you spend dealing with payroll processing is a minute that isn’t spent on your core business pursuits. For US-based businesses paying Canadian employees, the time spent on payroll is effectively doubled. Since your US payroll system won’t work for Canadian employees, you need a second, separate system. That means double the investment of time, energy, and money. To avoid this added expense, it makes sense to use outsourced payroll processing. Aside from saving you the time of setting up and utilizing a second payroll system, outsourced payroll processing can save you time in many other areas.

1. Administrative Setup

Setting up a business in Canada is time-consuming and costly. You need to establish a business presence inside of the country, establish all of the necessary government accounts, and create a banking and insurance infrastructure. Using an outsourced payroll processing service allows you to sidestep this investment of time and money. They can operate as an Employer of Record (EOR), which is the Canadian equivalent of a Professional Employer Organization in the States. As an EOR, an outsourced payroll processing service has already met all of the legal requirements for paying Canadian employees.

2. Legal Training

Learning the Canadian employment and tax codes takes a lot of time, and a lot of commitment. As the codes change over time, additional training is a constant expense. Without a deep understanding of the laws and regulations, mistakes are almost guaranteed. When those occur, the time and expense to remedy them can be considerable. Payroll service providers deal with payroll issues every day. They provide services to a wide variety of industries, so there aren’t many situations that they don’t encounter on a frequent basis. To deal with those situations, their staff is constantly training, attending workshops, taking continuing education classes, and meeting with auditors and inspectors.

3. Software Setup and Training

Once you have more than a handful of employees, it becomes impractical to try to handle payroll using a pen and paper. Payroll software is expensive, and it takes time to train employees to use it. As rules change, and software updates are issued, more training becomes necessary. Using a payroll service provider as an EOR saves you the time and expense of maintaining costly software. They already have the best software available, and they constantly train in its use. Instead of spending time learning software that serves a very small purpose for your company, your employees can focus on developing skills that advance your principle business endeavors.

4. Error Checking

Going over timesheets and invoices can take a considerable amount of time. If any errors are made, even more time is necessary to find and remedy the mistake. A payroll service provider has the software and experience to avoid mistakes in the first place, and uncover them quickly on the rare occasions when they occur. Since a payroll service provider has a large number of employees trained to handle payroll, there are more sets of experienced eyes going over your payroll numbers. This greatly reduces the chances of any mistakes slipping through the cracks.

5. Audit Prevention

Mistakes cost time to fix and, if they lead to an audit, cost time spent dealing with multiple bureaucracies. Collecting paperwork, meeting with officials, and sitting through hearings don’t help advance your business. The best way to deal with audits is to avoid them in the first place. Payroll service providers are experts at identifying and fixing any red flags in your paperwork that could lead to an audit. With their help, you can make sure that all of your paperwork passes muster.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Processing, Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Canadian Payroll Deductions, Canadian Payroll Regulations, Canadian Payroll Service, Payroll Calculator, Paying Canadian Workers

What is the Best Canadian Payroll Calculator?

Posted by Ray Gonder


Dec 27, 2013 9:00:00 AM

What is the Best Canadian Payroll Calculator2Any business (including those based in the US) that needs to pay Canadian workers could benefit from a Canadian payroll calculator. These calculators can help you figure out basic withholdings for Canadian taxes, the national pension plan, and unemployment insurance (called employment insurance in Canada). For everyday withholdings and remittances, a Canadian payroll calculator can point you in the right direction. However, there are some limitations to a Canadian payroll calculator that you need to take into account. Failing to address those limitations can cause you to withhold too little or too much money from your workers’ checks. When that happens, you’ll be on the hook for back payments, repayments, fines, and more.

What it Does

A Canadian payroll calculator takes the information you enter, and gives you a quick overview of the most likely withholdings and remittances. It bases the output solely on the information you’ve entered, so be sure to double check what you enter. Using current laws and regulations, the calculator is able to predict the standard withholdings for your employees. This will help give you an idea of what you should be holding back from each paycheck. While it’s certainly not foolproof, it can show if your withholdings are currently way off.

What it Doesn’t Do

A Canadian payroll calculator can’t do advanced error checking, and it can’t offer legal advice. It assumes that you understand, and are correctly applying, all of the Canadian workplace regulations. If you misunderstand or misapply a regulation, the calculator will give you an erroneous result. If you misclassify a worker, or enter the wrong tax information for them, again, you’ll get a false result. The calculation is only as accurate as the data entered, so be sure you know what you’re entering.

The Best Calculator

Right now, the most reliable Canadian payroll calculator is a professional payroll service provider (like The Payroll Edge). They know and understand all of the relevant laws and regulations governing payroll withholdings and remittances. The staff spends every day dealing with every possible payroll scenario, so they don’t get tripped up by the subtleties of the law. They know how to appropriately classify employees, to make sure they’re being entered correctly into the payroll system. A professional payroll service provider can also offer advanced error checking, so simple arithmetical mistakes don’t end up costing you fines and back payments. While a payroll calculator can point you in the right general direction, a professional payroll service provider can ensure that you achieve, and maintain, full compliance with all applicable laws.

Canadian Payroll Tax Deduction Calculator

Topics: Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Payroll Tax Calculations, Payroll Tax in Canada, Canadian Payroll Regulations, Canadian Payroll Service, Payroll Calculator, CRA Payroll Tax

Manage Your Payroll the Right Way with an Outsourced Service Provider

Posted by Ray Gonder


Nov 20, 2013 9:00:00 AM

describe the imagePayroll processing is an important part of any business. Making sure everyone is paid accurately, and on time, is critical. Making sure all of your reporting and remittance obligations are met is equally critical. Mistakes in any part of your payroll processing can lead to labour issues, audits, and expensive legal entanglements. There are several ways to handle your payroll processing, some more difficult than others. Handling your payroll the right way will save you time, effort, and money. Handling it the wrong way can end up costing you way more than you bargained in the long run.

DIY Payroll Processing

You always have to option of just doing it all yourself. Most businesses start out this way, with the owner handling payroll until it becomes too large to manage. You can take the time to learn all of the regulations, attend conferences to learn about new legislation, and even buy yourself some expensive software. Of course, then you have to learn to use the software, and keep up with updates and changes to the software. Once you have the knowledge and the software, you can spend hours every week handling all of the paperwork for payroll processing, as well as addressing any employee issues with payroll. As your business grows, you’ll spend more and more time on payroll, and less time focused on your business.

Pass it Along

Often, when payroll processing gets too complex for the owner, it gets handed down to the growing HR department. They inherit the responsibility of keeping up with changing legislation, learning new software, and dealing with employee issues. They often have little or no previous experience with payroll processing. They get to start from scratch, and learn the ins and outs of payroll service as they go. Of course, they aren’t liable for any mistakes they might make along the way. That burden still falls directly on the company. Incorrect payments or improper remittances can trigger a visit from the CRA. If they find problems with compliance, the fines and penalties go to the company, not to the HR staff.

Amateurs vs Experts

Payroll processing is a lot like other business services. It’s best to leave it in the hands of agencies that specialize in making sure it’s done right. Most businesses use accountants for taxes, shipping companies to deliver goods, and service agencies to repair equipment. Why do they outsource all of those needs? Because smart owners know that no business can do everything. Letting trained, experienced experts handle your tangential business needs just makes sense. When you try to do everything, you end up putting too much stress on your personnel, and pulling their focus away from your core business pursuits. By outsourcing some of your needs, you allow your staff to maintain laser-focus on growing and improving your business.

An outsourced payroll service relieves pressure on your staff, and relieves you of the stress of worrying about potential audits and penalties. They have years of experience interpreting and applying new and existing legislations, allowing them to easily navigate the complex payroll requirements. They undergo frequent, rigorous training, and have access to the latest and best software. Using their services is just like engaging a tax professional or repair service. If you want the best service, you hire someone who specializes in the service you need, and who has a proven track record of success.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Processing, Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Canadian Payroll Deductions, Payroll Tax Calculations, Payroll Tax in Canada, Canadian Payroll Regulations, Canadian Payroll Service, Payroll Calculator, CRA, CRA Payroll Tax, CRA Compliant

Canadian Payroll Tax Calculations - What You Need to Know

Posted by Stacey Jones


Nov 18, 2013 1:20:00 PM

Canadian Payroll Tax Calculations   What You Need to KnowIn an effort to save money, it can be tempting to try to handle as many tasks as possible in-house. Many businesses are asking their personnel to handle a growing list of responsibilities, regardless of their training or expertise. While some tasks afford a margin of error, and allow for time to learn the responsibilities, handling Canadian payroll tax responsibilities isn’t one of those tasks. If you’re considering handling Canadian payroll tax compliance in-house, there are a few things you should know beforehand.

It’s Not Easy

Canadian payroll tax laws are complex and difficult to learn, let alone master. To make matters worse, the application of those laws can change from one situation to the next, and may not be applied the same way by every agency. Learning which laws apply in which situation takes time and experience. During that time, any mistakes can cost the business dearly. The CRA, and other agencies, won’t accept ignorance or inexperience as an excuse for non-compliance. At best, mistakes will result in back payments, along with the associated costs of processing and distributing new cheques. At worst, fines and criminal penalties can be imposed for any errors in reporting or remittances.

It’s Not Constant

Learning Canadian payroll tax laws is a constant process. The laws, at all levels, change frequently. These changes can be in the form of new legislation, changes to existing legislation, or differences in application from year to year. Staying on top of these changes requires constant vigilance on the part of your personnel. They’ll have to attend seminars, training sessions, and read up on proposed and actual changes. This investment of time and effort will come directly out of their overall productivity. If they make any mistakes with the new legislation, any savings you enjoy by handling Canadian payroll tax in-house will quickly disappear.

It’s Not Without Risk

All of the time, effort, and money invested in training your personnel can vanish after a single CRA audit. Government agencies have stepped up their compliance checks, meaning more agents looking for more mistakes. The fines and penalties for first-time offenders have risen steadily in recent years, making any errors more costly. Even the best training, and intentions, aren’t a substitute for experience. While your personnel are trying to develop that experience, the CRA will be watching for any slip-ups.

There’s an Easier Way

Using your in-house personnel to handle Canadian payroll tax compliance may appear to save you money on upfront costs. You’re already paying your personnel, so why not add to their responsibilities? However, when you add in the cost of training, the lost productivity, and the potential fines and penalties, it becomes a losing proposition. There are ways to cut expenses that don’t put your business at greater risk of a government audit. Using an outsourced payroll provider saves you the expense of constant training, and keeps your personnel focused on tasks that directly benefit your business pursuits. A payroll provider also minimizes the risk of a government audit, saving you money on fines and legal representation during government actions. When you do the math, it just makes sense to let a payroll provider handle your Canadian payroll tax obligations.

Canadian Payroll Tax Deduction Calculator

Topics: Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Canadian Payroll Deductions, Payroll Tax Calculations, CRA Audit, Canadian Payroll Regulations, Employee Payroll Deductions, Payroll Calculator, CRA, CRA Payroll Tax, Payroll Deductions

How to Avoid Staying Educated on Always Changing CRA Payroll Tax Rules

Posted by Stacey Jones


Nov 11, 2013 9:00:00 AM

How to Avoid Staying Educated on Always Changing CRA Payroll Tax RulesMany businesses still choose to handle payroll using in-house personnel. This is usually done either out of habit, or out of the belief that it saves the business money. Whatever the reason, it’s becoming increasingly expensive and risky to handle CRA payroll tax compliance using your own staff. As the CRA payroll tax rules continue to evolve and change, it’s becoming more difficult to keep up with all of the complexities. Any money saved by using your own staff can be instantly wiped out by a single error.

A Better Use of Time

Keeping up with CRA payroll tax legislation requires in-depth training and retraining. Even with all of that training, it still takes constant practice to meet all of the legislative requirements quickly and efficiently. Unless you have a dedicated payroll staff, your personnel probably only deal with CRA payroll tax requirements on a weekly or semi-weekly basis. This leaves gaps in their experience that can allow mistakes to creep in. With all of the other daily tasks your HR personnel are responsible for, it can be difficult for them to find the time to keep up with all of the payroll requirements. When they’re focused on payroll, they aren’t as productive in their other tasks. When they’re focused on their other tasks, they’re not gaining experience in CRA payroll tax compliance.

Employee Issues

Part of handling payroll involves handling employee questions and concerns. Employees always have questions about insurance and tax withholdings, overtime pay, missing hours, and myriad other concerns. Addressing these issues will consume even more time that your staff could be spending on more productive pursuits. Any mistakes must be corrected, CRA documentation must be changed, and new checks must be issued. The hours lost fixing minor errors can quickly add up to far more than the company is saving by using in-house personnel to handle payroll.

Convoluted Compliance

Even if your personnel have the right training and adequate experience to handle most payroll needs, that’s no guarantee that they’ll understand all of the nuances of the CRA payroll tax requirements. Worker classifications, insurance requirements, reporting documents, and more, can all change without notice. Something as simple as a trip to another work site can change the reporting requirements for a worker. If your staff isn’t familiar with the triggers that can cause these changes, they can fail to comply with the most current legislation. When that happens, fines, penalties, and back pay can quickly add up to tens of thousands of dollars.

Expensive Errors

Over the past year, the CRA has drastically increased their compliance efforts. This means more audits, more time spent navigating bureaucracy, and more potential for fines and penalties. Once you’re involved in a CRA payroll tax audit, you’ll probably want to engage legal counsel. At current hourly rates, it won’t take long for a labour attorney to cost far more than a payroll service.

Payroll Peace of Mind

Engaging a payroll service can eliminate all of these problems and concerns. Their dedicated staff is focused on payroll, and payroll regulations, every single day. They have the education, training, and experience to maintain compliance with the most recent legislation. Many of them are involved in shaping upcoming legislation, so they can be prepared for changes before they even happen.

Using a payroll service allows your personnel to focus on tasks for which they are better suited, and which are more productive for your business. The payroll service can handle everything from employee queries to CRA audit preparation. With their professional CRA payroll tax services, you save time, aggravation, and avoid compliance issues.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Service Provider, Outsourced Payroll Service, Payroll Tax Calculations, Payroll Tax in Canada, CRA Audit, Payroll Service, Payroll Calculator, CRA, CRA Payroll Tax, Payroll Deductions, CRA Compliant

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

Posted by Stacey Jones


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

Can You Afford to Hire a Full-Time Payroll Clerk?

Posted by Stacey Jones


Nov 4, 2013 9:00:00 AM

Can You Afford to Hire a Full Time Payroll ClerkMany businesses employ a full-time payroll clerk to handle all of their payroll needs. They believe that an in-house clerk offers more benefits, and lower prices, than an outsourced payroll provider. On its face, this can seem to be true. However, looking at all of the hidden expenses of an in-house payroll clerk reveals just how costly they are. When you compare that cost to the advantages you get from a payroll provider, you’ll see just how affordable they really are.

In-House Advantages

Having a full-time payroll clerk on staff does offer some advantages. They can be 100% dedicated to payroll issues, instead of juggling multiple responsibilities. This gives them the time and freedom to keep up with changing regulations, and to focus entirely on handling your payroll needs accurately. Often, payroll is simply one of many responsibilities handled by a staff member. This can lead to inaccuracies, as they can’t be focused on payroll at all times. A full-time payroll clerk is much less likely to run into issues.

At What Cost?

Figuring out what an employee costs per year seems like a simple process. Add up the costs of their salary, benefits, and vacation days, and you have your answer, right? Wrong. This is what you’re paying them, not necessarily what they’re costing you. A full-time clerk will have sick days, vacations, and other absences. The time they spend away from your business will have to be covered by another employee. The time that employee spends on payroll will have to be covered by yet another employee. This cycle can drag down productivity throughout your administrative departments.

A full-time payroll clerk typically gets paid for the hours they’re at work, not necessarily the hours they’re working. There are times when they may have nothing to do. You’ll still be paying them for that time. During any periods of downtime, you’ll still be paying them for their presence.

One overlooked expense is training for the payroll clerk. The payroll laws are constantly changing and failing to keep up with them can lead to expensive fines and penalties. To avoid this, your clerk will need to undergo continuing education, attend conferences and workshops, and train on the latest software. The money for all of that training has to come from somewhere.

Even with all of the money you spend on training, there are no guarantees that your payroll clerk won’t make a mistake. Even though it’s their mistake, you’re still on the hook for all of the legal penalties. You could spend a lot of money hiring, training, and retaining a full-time payroll clerk, just to end up paying fines as well. As the laws and issues surrounding payroll become more complex, the chances of an error increase.

Professional Help

An outsourced payroll service provider offers all of the advantages of a full-time clerk, without the hidden expenses and risks. Instead of a single employee dedicated to your payroll needs, you can have an entire agency full of payroll professionals. You don’t need to worry about finding a replacement when your clerk is out of the office, or the effect their absence will have on your other employees. You pay the service provider for the services they render, not the time they spend in the office. The cost of their training is distributed across hundreds of clients, meaning that you get the best training for you payroll service at a fraction of the cost. Best of all, with their training, experience, and expertise, the chance of costly errors occurring is reduced to almost zero.

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

Topics: Payroll Processing, Outsourced Payroll Service, Canadian Payroll, Payroll Tax in Canada, Canadian Payroll Service, Payroll Calculator, CRA, CRA Payroll Tax, Payroll Deductions, Payroll Clerk

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