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3 Tips for Finding Dependable Payroll Services

Posted by Shannon Dowdall

|

Feb 14, 2018 9:00:00 AM

3_Tips_for_Finding_Dependable_Payroll_Services-1.jpgAs a U.S. or international company that’s seeking to expand business into the Canadian market, many challenges arise when looking for dependable payroll services. For American employers, the Canadian market seems so similar to the U.S. that businesses often fall short of getting all the help they need. For international employers, Canada’s ever-evolving compliance can lead to high costs for both their financial resources and reputation.

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

Finding dependable payroll services is more than just finding someone to outsource your payroll responsibilities to. In truth, the search is also about landing a payroll service provider that can help keep your foreign company abreast of any changes to Canadian business legislation—changes that could affect the growth of your business.

With the above in mind, check out below for our top three tips for finding dependable payroll services.


1. Is the Payroll Provider an Employer of Record?

The first question you need to answer to determine if you’ve found the right payroll services processor is whether they are an employer of record (EOR) or not. An EOR doesn’t just process payroll data and print cheques to order, they take over the legal responsibility of your employees—and the risks that come with that designation.

An EOR will be capable of both properly hiring and onboarding your Canadian employees, as well as ensuring your federal and provincial compliance is in order. EORs can also help you register and maintain all necessary accounts for operating a Canadian business, establish your financial infrastructure, and keep your workplace standards up to date.

Running a business in Canada isn’t as simple as opening up a branch and continuing on with your status quo. You need to become an expert in Canadian employment and taxation regulations. A payroll processor that is also an EOR will integrate with your daily operations, making managing Canadian employees simple and easy.


2. Is the Provider a Canadian Authority?

Dealing with Canadian compliance can become increasingly thorny when you don’t have a payroll services processor that can navigate the intricacies of business legislation, especially when it comes to handling official issues or queries with the Canadian government.

There’s a lot of information out there regarding proper employment practices in Canada, including what the employees’ rights are, how their benefits package should be managed, and what their wages should be. Now, take into consideration that all this information will vary from province to province and territory to territory.

Ontario, for instance, has just updated and revised its Employment Standards Act, changing standards for benefits, leave and vacation pay, the minimum wage, and more. The Fair Workplaces, Better Jobs Act, which was passed as of November 2017, has changed the game for all employers in the province whether they are local or foreign.

Your payroll processor should be a recognized authority by the Canadian government. Not only will such a processor maintain ongoing compliance, it will be capable of maintaining your credibility and great reputation as a Canadian business.


3. Demystify Cultural Variances

Finding dependable payroll services is really about finding a payroll processor that can make sense of all the cultural variances between your U.S. or international business and Canadian businesses. You need a processor that isn’t just a business you outsource the automated printing of your cheques to.

You’ll want a processor that reviews all the payroll data before those cheques are printed. A proficient processor will help you avoid any mistakes that could cost you in fines and a sullied reputation as a Canadian branch of your U.S. or international business.

Some of the best processors even have cloud-based systems to streamline payroll management, allowing you to track and review all payroll data before you send it off to be double-checked and processed.

You leave many things to chance handling payroll on your own. Landing a dependable partner for outsourcing payroll processing will ensure your Canadian business branch thrives.


7 Signs It's Time to Outsource Payroll

Topics: Payroll Processing

Have You Considered Partnering with a Canadian Payroll Provider?

Posted by Karen McMullen

|

Jan 31, 2018 9:00:00 AM

Have_You_Considered_Partnering_with_a_Canadian_Payroll_Provider.jpgExpanding into the Canadian economy can look very promising to foreign businesses right now, especially with Canada’s economy taking 10th place as of 2015 as one of the world’s largest economies. While it remains to be seen if Canada will be able to breach the $2 trillion mark post-2020, the fact remains that its prospects shine brightly. It can be particularly attractive to American businesses that perceive little to no barriers in setting up shop in the North.

If you’re one of the US businesses that want to expand into Canada, we’d like to give you some important advice: Don’t jump in headfirst without research. Those shining expansion opportunities often blind US businesses to challenges that can hinder progress right out the gate! More specifically, we’re talking about challenges related to payroll compliance and administration.

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

So, how do you avoid the common mistakes many American businesses make when expanding into Canada? To that, we answer you with another question: Have you considered partnering with a Canadian payroll provider?


What Is a Canadian Payroll Provider?

Quite simply, a Canadian payroll provider is an organization you can outsource your payroll services to. Such an organization is made up of experts in HR and payroll solutions, providing you with packages that include (but are not limited to):

  • Timely and fully compliant payroll processing and admin
  • Thorough tax remittance and year-end tax reporting (including worker’s compensation taxation specific to province)
  • Administration of benefits, RSP contributions, commissions, expenses, allowances, and all other parts of your employment packages
  • T4s, record of employment forms, paystubs, and employment verification issuances are handled as well

Having a Canadian payroll provider can make the difference between your business hitting the ground running during your expansion and struggling to gain your first foothold in Canada’s economy.


Why Do You Need a Partnership?

Yes, you can try to administer your own payroll in Canada, but it’s a thorny path to go down. Canadian payroll compliance is notoriously intricate and differs from province to province and is regulated by both provincial and federal government. Employment standards are also constantly changing, as evidenced by the new legislation passed last November in Ontario for improved wages, hours, benefits, and compensation for employees.

A partnership with a payroll provider takes all the worry out of payroll and compliance. A payroll provider enables you to focus on your core business responsibilities and helps you keep all the differences between American and Canadian payroll processing straightforward.


Risks of Managing Payroll on Your Own

Non-compliance in Canada, especially when it involves payroll administration and remittances, can be costly. Both your finances and your reputation are at stake, with the Canada Revenue Agency (CRA) fining you up to 10 percent of any late or failed remittances if the amount is more than $500. If you breach employment standards, including failing to pay your Canadian employees the correct amounts for time worked, for example, the monetary penalties can be devastating.

Perhaps the worst consequence to deal with, however, besides working to correct any compliance wrongs is appearing unprofessional as a new branch of your business in Canada. In this digital age, your business brand is everything, as it’s a highly informed consumer’s market. People will research your brand before making the decision to make a purchase from you or be hired by you as well.

Outsourcing your payroll by partnering with a payroll provider gives your business the brand insurance it needs to thrive in Canada!


What US Companies Need to Know about Paying Employees in Canada

Topics: Payroll Processing

9 Payroll Solutions to Save Your Business Time and Money

Posted by Stacey Duggan

|

Jan 22, 2018 9:00:00 AM

11_Payroll_Solutions_to_Save_Your_Business_Time_and_Money.jpgEvery company is unique and has its own strengths, weaknesses, values, and goals. But almost every company can agree on a common source of frustration: payroll. There are many ways to reduce payroll mistakes, but if you’re serious about saving your business time and money, it’s probably time to implement some of the following payroll solutions.

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


1. Switch to Salaries

This payroll solution may seem like a big change, but it could save you lots of money. When you begin paying your employees by salary rather than hourly wages, it simplifies the payroll process and ends up saving you time every payday. Staff hours won’t fluctuate anymore and you won’t need to keep track of hours worked or fiddle with inputting different values every week.


2. Outsource

If you want to save yourself time and you find that the payroll process has become quite arduous, try outsourcing. You save labour hours by taking the task off of your hands and handing it over to professionals who may be able to complete the process faster.

Not to mention, you may be putting your company at risk by handling payroll on your own.


3. Go Green

Still issuing paper pay stubs? It may be time to switch it up. Make online pay stubs mandatory and you could save your company money on paper and postage. You could take it a step further and save money on tasks other than payroll; like these companies, who not only saved money but also made money by going green.  


4. Open a Second Bank Account

Tax professionals suggest that you operate a separate bank account that is used for payroll only. This separates money that is appropriated for payroll and payroll taxes from general business funds. It helps you stay organized and reduces your chances of making a mistake.


5. Make Direct Deposit Mandatory

The more uniform your payroll practices are, the easier they will be. Direct deposit is more convenient for your staff and it saves you money spent on drawing up paper paycheques.


6. Offer Unlimited Holiday Time

By giving your staff unlimited PTO, you reduce the number of pay-codes you have to deal with. Not to mention, it can dramatically increase morale.


7. Use the Cloud

More and more companies are planning to move payroll to the cloud. Doing so can reduce labour time by eliminating manual work. Even better, you can integrate this with other HR software.


8. Start an Internship Program

There’s never a shortage of students looking for professional experience. Consider partnering with a local college or business school and starting an internship program. This way, you can become better involved in the community while receiving additional help.


9. Allow for Attrition

Attrition can save you money gradually, over a long period of time, and you don’t even have to do much. Simply eliminate as many unnecessary staff functions as possible in order to consolidate positions. This payroll solution can save you big bucks and even increases efficiency.


7 Signs It's Time to Outsource Payroll

Topics: Payroll Processing

Can Canadian Payroll Service Providers Help Your Company?

Posted by Ray Gonder

|

Jan 17, 2018 9:00:00 AM

Can_Canadian_Payroll_Service_Providers_Help_Your_Company.jpgHow can a business guarantee accurate payroll and legal complianceevery single pay period? The answer is simple: by outsourcing to a payroll service provider.

Whether you’re considering expanding into Canada or you’ve been operating in the True North for years, every business can benefit from the services of a Canadian payroll provider. Unfortunately, many companies don’t recognize the benefits of partnering with Canadian payroll service providers before it’s too late.

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

If you’re familiar with any one of these questions, your business can greatly benefit from a payroll service provider.


Are You Looking to Penetrate the Canadian Market?

Before you move into the Canadian market, you need to determine whether your business will be successful in the Great White North. Canadians are a specific demographic with unique tastes. Research is important to evaluate the projected success of your company.

Once you’ve researched the market and decided Canadian expansion is a sound business venture, you’re ready to establish your presence across the border, which is the first step to penetrate the new economy. To begin, your company needs to set up an administrative presence which can be a time-consuming process. To set up shop, you’ll need to register with the Canada Revenue Agency and apply for a business number. Canadian payroll service providers or PEOs can help you navigate this process so you can legally operate your business in Canada.


Are You Unfamiliar with Canadian Payroll Legislation?

If you’re wondering whether Canadian payroll service providers can help you master Canadian payroll legislation, the answer is yes. Canadian payroll service providers are experts when it comes to Canadian rules and regulations surrounding payroll. From calculating tax deductions to HR management, they’ve got you covered.

With new laws regularly being enacted that affect payroll, it is difficult for many business owners to keep up and comply with the rapid changes. However, for Canadian payroll service providers, this is one of their primary focuses and thus consumes a vast majority of their time. When you partner with a payroll service provider, you’re gaining access to all this information you can use to benefit your business.


Are You Confused Regarding the Difference between an Employee and an Independent Contractor?

If you think that a great way to get out of paying income tax, CPP, and EI to your employees is to classify them as independent contractors, think again. The CRA is cracking down on people attempting to avoid paying the proper taxes by misclassifying their employees.

So, what really is the difference between the two? There are four points to determine whether a worker is an employee or an independent contractor:

1. Level of control. If your business controls where the workers’ work is done and at what time, these are employees, not independent contractors. Independent contractors create and manage their own schedules.

2. Tool ownership. An independent contractor will own and provide all their own tools necessary for work completion. An employee will have tools provided to them by your company.

3. Financial involvement. If your workers can make a profit or loss or are require to cover operating costs, they are independent contractors.

4. Integration. If a worker is an independent contractor, they will likely have many clients. If you are an independent contractor’s only client, they may be considered an employee. This is a payroll grey area that may need expert attention so you don’t misclassify this individual.

Still not sure if your workers should be classified as employees or independent contractors? Canadian payroll service providers can go through each contract you have and help you determine the proper classification for all your workers-then pay them all appropriately and in compliance with the law.


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

Topics: Payroll Processing

Top 3 Considerations in Outsourcing Payroll

Posted by Shannon Dowdall

|

Jan 15, 2018 9:00:00 AM

Top_3_Considerations_in_Outsourcing_Payroll.jpgWhen you became a business owner, did you anticipate how many extra tasks you would be faced with on top of your core business? Many business owners do not expect or prepare for the amount of extra work they must deal with—from compliance to HR, these tasks pop up unexpectedly and require your immediate attention. One of the most important tasks that you might not have realized is so complicated and time consuming is payroll.

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

Every employee needs to be paid. Yet, it’s not as easy as simply handing over money to your employees and being done with it. There are certain rules and regulations that must be followed in order to ensure proper payroll practices. Most business owners are unfamiliar with these practices, which leaves their payroll in a worrisome position.

The good news is outsourcing is a great solution for business owners who don’t know where to begin when it comes to payroll practices. However, there are a few considerations in outsourcing payroll that will help you determine whether it is the right option for your company.


1. Compliance

First and foremost, if you’re administering your company’s payroll, you need to be sure you are complying with all relevant Canadian payroll and tax laws. If you fail to comply with Canadian legislation, this can have serious repercussions on you and your business—from fines between $1,000 and $25,000 to up to 12 months of incarceration. You don’t want to risk it.

While complying with Canadian legislation is mandatory, it can also be quite difficult to familiarize yourself with the proper legal practices and stay up to date. You will need to dedicate hours upon hours of your time to learning the proper payroll procedures. Or, you could simply outsource your payroll.

When you outsource payroll, you are given access to expert knowledge and can ensure your payroll practices comply with all Canadian rules and regulations. Compliance should always be one of the main considerations in outsourcing your company’s payroll.


2. Complexity

If you only have a few employees, you may be able to handle payroll on your own. However, as you hire more employees, the more complex your payroll will become. If your company is made up of a mix of different employees including part-time, full-time, seasonal, or contingent, your payroll can become complex. The same can if you are employing Canadians from all over the country; different payroll practices will be applicable depending on the province or territory your employees work in.

For someone who is unfamiliar with paying different types of employees in different locations, this task may seem overly complex and far out of your comfort zone. If this is the case, outsourcing can take the weight off your shoulders. Experts can handle all your payroll needs, no matter the complexity.


3. Accuracy

Accuracy is one of the most important considerations in outsourcing payroll. Your employees are the ambassadors for your company. If your employees aren’t paid on time or are paid the wrong amount, they likely won’t have great things to say about your company.

Whether you were busy and forgot to enter payroll, or you entered the wrong salary amount because you were distracted, it doesn’t matter. There are no acceptable excuses for payroll mistakes.

The solution to this problem, again, is outsourcing. A company that focuses on payroll will have a higher accuracy rate than if you were to pay your employees on your own. As payroll experts, this is what they do day in and day out. They excel in their field and won’t make mistakes; accuracy is their number-one priority.


7 Signs It's Time to Outsource Payroll

Topics: Payroll Processing

7 Audit Issues Canadian Payroll Companies Must Avoid

Posted by Stacey Duggan

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Jan 12, 2018 9:00:00 AM

7-Audit-Issues-Canadian-Payroll-Companies-Must-Avoid---compressor.jpgAt some point or another, you might have to deal with the CRA if you’ve been audited. However, audits are easier to get through when the business is compliant with CRA guidelines. 

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

Steer clear of these seven audit issues.

1. Personal Expense Reimbursement

Ensuring business and personal expenses are kept separate maintains a clear distinction. Wider-ranging CRA audit guidelines allow auditors to cast a wide net, and they might look into these reimbursements. You don’t want them to appear as hidden remuneration, and offering these kinds of perks may be found taxable, pensionable, and insurable by the CRA.

2. Employee Reclassification

Canadian payroll companies have to classify employees correctly to ensure the right tax amounts are deducted. Don’t use loopholes to attempt to get around employee classification, like terminating an employee and re-hiring them as a contractor. 

What’s the difference between employees and independent contractors? If you’re unsure whether you’ve defined your employees correctly, the CRA website lists helpful tips.

3. Vehicle Allowances

The standard definition of vehicle allowance is a flat rate allowance to drive for work-related purposes. The benefit of personal use of a company vehicle must be included on staff members’ T4 slips as income. Taxable benefits for vehicles indicate they’re pensionable and insurable, which requires reporting CPP, EI, and income tax.

The CRA recognizes two taxable benefits related to company vehicles: a standby charge similar to car wear and tear, and operating a cost benefit related to the number of kilometres a vehicle is driven. Whether it’s a fleet vehicle or personal, best practice for Canadian payroll companies is to keep a logbook for both types to avoid any auditing issues.

4. The Independent Contractor

Independent contractors are not employees, which means they’re paid differently than your salary staff. Employees must be classified correctly to ensure adequate payroll and tax deductions.

Consider making it a mandatory policy to use the T4A slip for subcontractors or independent consultants.

5. Timely Remittances

Not remitting government deductions on time is a CRA red flag. Money that’s collected from payroll sources and GST has to be submitted on time. Knowing how payroll taxes are calculated is important, in addition to knowing remittance deadlines. Failing to submit them on time results in stiff penalties by the CRA.

The government considers these amounts as their own “funds in trust” held by a business on a government’s behalf. Canadian payroll companies should ensure they submit their payments on time and in the correct amounts. Staying diligent about this duty keeps you clear of any auditing mishaps.

6. Salary Expenses

Bonuses, cash payments, and extra compensation for employees should go through payroll to ensure they’re included on the T4 slip. The CRA looks out for this to ensure you’re keeping an updated record of any staff gifts and to guarantee these gifts are properly reported.

7. “Associated” Companies

Canadian payroll companies with other businesses or “associated” companies are more likely to attract additional attention. Businesses with multiple companies can enjoy lower tax rates on taxable active business income due to small business deductions. But this section can get complex fast.

Ensure clear ownership lines and defined majority shares. Increasing the number of shareholders within multiple groups owned by the same people can get sticky. If you are debating moving people around within your organizations, consider using an accountant to assist and keep an accurate record of changes.

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

Topics: Payroll Processing

Why It’s Important to Use the Right Canadian Payroll Deductions Calculator

Posted by Ray Gonder

|

Jan 10, 2018 9:00:00 AM

Why-It’s-Important-to-Use-the-Right-Canadian-Payroll-Deductions-Calculator---compressor (2).jpgCalculating Canadian payroll deductions isn’t as easy as it seems. It’s not just about punching in the right numbers—there are many factors to consider. Using the right calculator not only makes it easy to submit the correct pay, it keeps your business in line with regulations and your employees happy. 

Here’s why it’s important to use the right Canadian payroll deductions calculator.

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

Ensure Legal Compliance

Payroll processing in Canada has several key features you need to know. Provincial and federal laws mandate how much you have to pay employees and how you need to deduct taxes. From scheduled breaks to vacation pay and statutory holidays, each province and territory has its own legislation to follow. 

Source deductions for employees vary by salary, commission, and classification. Taxes are deducted based on wages and earnings. You have to consider full-time versus seasonal employees versus independent contractors. Classifying employees correctly is important in determining the right deductions. 

Understand the legislation that applies to the employees in your province to verify you’re calculating the right deductions. Now is not the time to sort-of understand the law: You need to know it backward and forward to ensure you’re entering the right numbers and remitting accurate deductions. 

The CRA is not a fan of miscalculations. They want the correct amounts remitted to them. Using the right calculator helps ensure that you are doing so by providing a starting point for common tax situations. To meet the right standards, you need a payroll calculator that manages it all.

Get the Best Help

The sheer number of variation among business employees can make calculating payroll feel overwhelming and confusing. Not using a calculator could have drastic consequences, and entering the wrong information could yield noticeably weird results. If those numbers don’t look right, you may need to reexamine your input. While calculators aren’t right in all instances, any broad discrepancies are a red flag. The calculator is only as reliable as the numbers you feed it. 

Consider your and business location when determining the best payroll deduction calculator. Also ensure the calculator is updated with current tax tables. If you can’t decide between your numbers or the calculator’s, it might be time to consult a payroll service provider.

Experience When You Need It

The right payroll calculator might be a tool you can find online, but it’s not the only tool available. Look to professional payroll providers for accurate and efficient payroll and deduction processing. These services confirm that Canadian payroll deductions are calculated accurately. They’ll ensure employees are properly classified and use all available information to determine accurate pay and tax deductions.

Using payroll software on your own may not be enough. Software may not be able to consider all the variables or it may be outdated. If your payroll needs are complex, it might be best to outsource payroll to receive comprehensive solutions for all your needs.

Payroll mistakes can hurt your business. Payroll service providers understand the intricacies of legislation to ensure deductions are calculated appropriately for all staff and these amounts are remitted to the government on time. Forget about stressing over funny totals when knowledgeable experts handle this for you. Highly trained, experienced staff will minimize your payroll mistakes, so you don’t face penalties from the CRA.

Service providers manage the legal side of payroll, pinpoint and fix calculation errors, and determine the cause of variances. Experience provides the answers you need. A payroll provider is more than a payroll deductions calculator—it’s an all-inclusive result.

Canadian Payroll Tax Deduction Calculator

Topics: Payroll Processing

Why Understanding Payroll Deductions Is Crucial for Business Owners

Posted by Anna Mastrandrea

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Jan 8, 2018 9:00:00 AM

Why-Understanding-Payroll-Deductions-Is-Crucial-for-Business-Owners---compressor.jpgAs a business owner, you want to ensure you’re paying your employees the right amount—for both their sake and yours. There’s a lot more to payroll deductions than meets the eye, which makes understanding payroll deductions crucial to determining accurate pay. 

Here’s why it’s so important.

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

Ensure Accurate Deductions and Remittances

Tax requirements are legal requirements. It’s important to understand why you need to deduct source deductions and the different types, so you know you’re taking the right amount from employees’ pay. Deducting and remitting wrong totals results in serious consequences from the CRA and leaves you with unhappy employees. 

There are three main source deductions employers remit: income tax, employment insurance contributions, and the Canada Pension Plan premiums. Each one has its own rules to abide by. CPP is for pensionable employment, while EI is deducted in relation to each employees’ pay, which varies among staff members. 

Understanding payroll deductions might feel overwhelming, but the right resources and tools make it easy to calculate payroll efficiently and properly.

An Obligation to Employees

You, as a business owner, have a duty to your employees to pay them the right amount and pay them on time. Wrong or late pay has a negative impact on staff, who won’t be happy to receive miscalculated pay cheques with incorrect tax deductions. Their work is their livelihood, and receiving incorrect pay makes you look like a bad business owner. 

Understand the difference between gross and net pay, the types of source deductions, taxable benefits, holiday pay, vacation pay, and bonuses because these factors all impact employee pay and deduction. Submitting payroll is an immense undertaking. You need to know exactly what to remit for CPP, income tax contributions, employment insurance premiums, and your business’ share. It all needs to be handled properly.

When you first hire employees, you need to register them within the right accounts and have them to fill out the correct forms. You’ll eventually have to file accurate records with the tax office. Maintaining correct employee files makes calculating payroll deductions less of a challenge. 

Stay informed on the different deductions and how each one applies to staff. Differentiating between employee and self-employed also helps ensure you’re deducting and remitting from the right employees. You need current employee information to submit error-free T4s and records of employment. Looking after updated files that list employees’ personal information, job description, salary, classification, and other pertinent facts makes it easier to deduct the right amount.

Accurate Record-Keeping

Keeping accurate employee records helps you know if you’re running your business properly. Mistakes can result in fines. You’re required to maintain accurate records that include time-keeping, deductions, and pay history. If you’re in charge of payroll, having the latest facts makes this task easier to complete.

Understanding payroll deductions is tied to recording how taxes apply to your business. There are plenty of resources available for business owners, such as the keeping records page on the CRA’s site. Most records contain, at minimum, the type of business, applicable GST/HST registration, and the format used to keep records. These all assist in guiding you to find the correct information to submit payroll deductions.

Consider outsourcing to professionals who know the ins and outs of payroll, and you can ensure the right pay goes to your employees each time. You’ll find out quickly how much you can      . They’ll meet your business needs, keep staff happy, and keep the CRA off your back.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Processing

Benefits of Cloud Computing for Canadian Payroll Companies

Posted by Shannon Dowdall

|

Jan 5, 2018 9:00:00 AM

Benefits_of_Cloud_Computing_for_Canadian_Payroll_Companies.jpgIt’s important that businesses keep up to date with the different technologies that are out there. Part of this reason is because, by doing so, they can keep up with the competition or stay ahead of the pack. The other part of this reason is because technology serves to increase efficiency and efficacy. Keeping up with technology ensures your business is operating optimally.

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

Cloud computing is one of the newer technologies, and it’s a huge asset to businesses, particularly when it comes to payroll. There are many benefits of cloud computing for Canadian payroll companies, so be sure to take advantage.


What Is Cloud Computing?

The “cloud,” is where people can store data online. It’s a safe, convenient alternative to storing data on physical servers in the office.

There are a few reasons why companies are moving to the cloud.


No Need for Servers

Usually, every couple of years, a company has to replace its outdated servers. In this case, you would have to migrate all of your files from one server to another. Every time you move a file in this way, there’s a chance of losing data. With a cloud server or cloud computing, you don’t have to do this. You move everything to the cloud once, and that’s it, you’re done.

For Canadian payroll companies, this means there’s less chance of losing client data and information.

Storing data on physical servers is also risky. If anything happens to the computer holding the data, it could be lost forever. There’s also the need to continuously update the software.


Less Chance of Hacking

Hacking is a serious issue with so much information online, especially for Canadian payroll companies. They have access to and are the keepers of such sensitive data. Identity theft is always a possibility.

Putting information in the cloud doesn’t eliminate the chance of getting hacked; however, it does reduce the risk because there are many security measures in place.


Remote Access

Another benefit of cloud computing for Canadian payroll companies is that they have remote access to clients’ data. This means they can access your payroll information at any time during the day, anywhere in the world—and so can you. It’s the most convenient way to access payroll data.

Cloud computing is one of the newest technologies payroll companies have been investing in. It offers greater security, ease of access, and convenience.


7 Signs It's Time to Outsource Payroll

Topics: Payroll Processing

Is Your Business Employing a Canadian? 5 Payroll Tips

Posted by Karen McMullen

|

Jan 3, 2018 9:00:00 AM

Is_Your_Business_Employing_a_Canadian__5_Payroll_Tips.jpgIf you’re an American business owner employing a Canadian, you need to know about the different payroll rules and legalities. You can be an American company that’s hiring Canadians remotely, or you may have a branch of your business in Canada and have hired Canadians to work in it. However, it’s important to know Canadians must be paid using different rules and labour laws.

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


1. Registering Your Business

Your business is registered in the U.S. because it’s where your company is located, but if you’re hiring a Canadian to work in Canada, then you also need to register your company in Canada to receive a business number. Once you register your company, you can then register for a payroll account with the Canada Revenue Agency (CRA). This is the first step in being able to hire and pay Canadian employees.


2. Employees vs. Contractors

Canada has very strict rules about what constitutes an employee and what constitutes a contractor. Many businesses try to register their personnel as contractors because they then don’t have to pay Employment Insurance (EI) or Canadian Pension Plan (CPP) contributions because that becomes the responsibility of the contractors. However, be very careful about this. You might think your workers are contractors, but the CRA might consider them employees. It’s important to get that fact straightened or you could face significant fees.


3. Be Organized with Paperwork

Since you’re an out-of-country business hiring Canadians, it’s very important that you’re organized with all of your paperwork for each Canadian employee. The paperwork should include start dates, employment contracts, and the T4 forms.

If you get audited and you’re not organized, it can create a massive headache for you. The CRA will want all of your paperwork for your business dealings in Canada with regards to your personnel. Should that ever happen, it’s better for you if you’re already organized with everything they would need or ask for.


4. Taxes

On top of EI and CPP, there are also federal taxes and provincial taxes you need to consider. Each province or territory has its own tax brackets that need to be adhered to. It can become confusing if you have employees in different provinces or territories. Tax rates also vary depending on the employee’s salary level.

Since the taxes can be complicated to calculate, it’s a smart idea to outsource your payroll so you have peace of mind knowing your employees are getting paid correctly and according to the correct tax table.


5. Hire a Company to Help with Payroll and Taxes

The best tip that anyone can give you when you’re employing a Canadian is to outsource payroll to a company that fully understands all of the issues, technicalities, and rules you might not know or understand. Why waste time and cause yourself stress and worry when you don’t have to?

Employing a Canadian is a great business decision, but it comes with complicated tax obligations. It’s a good idea to outsource payroll so you know that everything is being handled properly.


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

Topics: Payroll Processing

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