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How Canadian Payroll Providers Can Benefit Your Business

Posted by Anna Mastrandrea

|

Apr 26, 2017 9:00:00 AM

How-Canadian-Payroll-Providers-Can-Benefit-Your-Business.jpgBusinesses can benefit with additional help and expertise in a variety of areas.The most common tends to be payroll, asproviders make it easy to look after your employees and manage your company’s payroll as it expands. 

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

With exceptional experience and the best practices, payroll providers know how to ease business duties. If you’re looking to save time, need some extra assurance, and want to grow your business, Canadian payroll providers are here to help.

Time and Cost Savings

It’s no secret that payroll is a time-consuming process. Hours and pay needs to be calculated, taxes deducted, overtime and stat pay added as necessary, and pay stubs issued and deposited. These duties add up, and staff are restricted when their energy is spent here instead of directed to other parts of the business, such as improving strategy, branding, and creative content. 

Payroll, a never-ending task with regular renewal, needs every piece of information be submitted correctly each pay period, and then repeated again for the next pay period. When you outsource this responsibility to Canadian payroll providers, you’ll free up time for staff who previously handled this, and can delegate their responsibilities to the money-making ventures of your operation. 

These peripheral aspects of your business are just as critical as your other tasks. When you can find ways to deal with it effectively, you’ll get more done in-house while benefiting your business at the same time.And when you replace the cost of paying in-house clerks with a flat fee each month, you’ll trim in-house salary and benefits expenses. 

Canadian payroll providers know how payroll works to adequately coverall pay cycles and bookkeeping duties, and are pros at handling the trickier parts, leaving you worry-free and ready to get back to business.

Reliable and Accurate Service

Attention to detail has never been more important than in the payroll department. Canadian payroll providers do more than get the job done, they get it right. They’ll account for all of the necessary paperwork, calculations, and timely submission. 

Should you have any questions or thoughts, they’re convenient to reach and ready to answer. They may even have suggestions and strategies to improve your current payroll methods for more effective service. You supply the hours, salary amounts, deductions, notices for holiday pay and schedules, and anything else needed for accurate payroll, and they’ll handle the rest. 

To keep your business and stay in business, their work needs to be accurate and top-notch, so rest assured this is taken care of, error free, and in line with current payroll and tax laws to ensureyour company remains compliant. With the latest technology and up-to-date tax tables, they’re guaranteed to have everything necessary to provide reliable payroll data. You’ll get the trust and expertise that comes with knowing what they’re doing is right,with the regulationsin place to be sure your payroll and taxes are in accordance with current standards.

Business Growth and Expansion

When this department is covered regarding necessary and effective measures, you can really focus on growing and improving your business. A big obstacle many businesses have is administrative, and Canadian payroll providers can help grow your business because they’re informed about registration, the laws involved, and the infrastructure necessary for establishment.

Whether you’re considering a new market or simply want to grow your current office, payroll providers are there to help, providing the right tools to expand with you and make the process as seamless as possible. With cutting-edge innovation, they never let their software go out of date, and stay on top of the latest trends in payroll to improve your business’ production for pain-fee growth and expansion.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Processing

How Your Small Business Can Benefit from a Canadian Payroll Service

Posted by Corinne Camara

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Apr 24, 2017 9:00:00 AM

How-Your-Small-Business-Can-Benefit-from-a-Canadian-Payroll-Service.jpgIf you run a small business, you know how hard it is to get everything accomplished in a day. Many small business owners find this challenge easier to overcome by outsourcing certain departments to increase efficiency—with the payroll department being the most common. 

Learn how your small business can benefit from a Canadian payroll service.

Save Time and Money

No matter what size, all businesses have a common goal: increase profit and keep the bottom line strong. Payroll is a tedious, non-revenue–generating department, and enlisting a Canadian payroll service leaves your business more time to focus on its core business obligations. 

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

Research different providers to find the one that best fits your firm’s needs, and compare it against your current costs to ensure you’re getting the best deal. The plan should be costeffective for you. Time saved is money saved, and when this responsibility is removed from in-house employees, your staffwill be able to focus on principle duties, such as marketing and strategy, to grow your business. 

The time it takes to calculate wages along with the correct tax deductions, handle payroll administration, and generatemanagement reports is now handled by this service. 

In addition, the costly technology that requires regular upgrades is no longer a fee your business has to worry about, as the provider will always ensure it has state-of-the-art software for your payroll to be calculated correctly and efficiently. 

From pay stubs and T4s, to records of employment, RSPs, and benefits, all of these tasks are now taken care of by a knowledgeable provider, saving you the time and money of handling it inhouse.

Compliance Covered

Many small businesses don’t have the time or staff to handle the numerous legislative regulations dictating payroll and human resource matters. Learning and understanding the federal, provincial, and local employment and tax laws is complex and timeconsuming. With a payroll provider, compliance is covered. 

Outsourcing this duty provides you with a team of experts ready and always informed with current payroll standards and revisions. This frees you of any pressure and worry regarding incorrect tax filing, tax brackets, or employee misclassification. Errors are costly and can lead to fines, audits, and penalties. Hiring a Canadian payroll service rids your business of this headache. 

Human resources—benefits, pension,leave management, etc.—falls under this payroll umbrella, andso these tasks are also mandated by legislation.Look intoservicesthat cover these additional services to further reduce the stress of making errors in this department. 

Calculating payroll, deducting taxes, including vacation and statutory holiday pay, and even keeping a regular pay schedule are just a few of the many payroll tasks regulated by legislation thatoutlines how each function needs to be handled. With a third-party provider, you can be sure it is.

Accurate and Reliable Service

With a Canadian payroll service, you can be sure of accurate work and a readilyavailable group. These experts will always be in the loop on payroll trends and human resources. If an employee goes on vacation or calls in sick, no time is lost because this team will always be available to make sure payroll is managed and administered. Someone will always be available to talk about your business’ payroll.

The occasional mistake is human, but continuous errors are just bad business and leave you with irritated employees. Outsourcing this service ensures accurate and reliable payroll every time. Regardless of your personal or business situation, payroll doesn’t stop, and your staff expects a paystub every pay period. Focus on your main obligations knowing this one is handled correctly and taken care of. Canadian payroll services provide a service that is accurate and trustworthy—follows the law.

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Topics: Payroll Processing

What You Need to Know about Payroll Service Companies in Canada

Posted by Shannon Dowdall

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Apr 19, 2017 9:00:00 AM

What-You-Need-to-Know-about-Payroll-Service-Companies-in-Canada-1.jpgPayroll service companies in Canada are an increasingly popular option for small and medium-sized businesses alike. They provide a variety of services in a timely and reliable manner, making them a great third party to work with. 

Each one has its own unique service offerings, and any business owner thinking aboutworking with oneshould know and understand the services these companies provide.

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

Payroll Service Companies 101

Payroll service companies in Canada are third-party organizations hired by small to medium-sized businesses to manage said businesses’ payroll departments. Many of these businesses find it a good alternativeto overseeing the department inhouse. Freeing up time and resources to focus on core obligations and business principles, payroll service companies relieve business owners of any pressure in correctly managing the department. 

Once a company has been accepted by the business, both parties will agree to specific details that allow the payroll companyto accurately calculate payroll, including holiday and vacation policies, pay schedule, tax information, and any other applicable policies.Afterthis is finalized and a contract is signed, it’s off to the races. 

These companies see that taxes are filed on time, payroll is calculated correctly with the right tax deductions–along with timely administering (whether by cheque or direct deposit), and financial management reports are provided. Payroll service companies in Canada offer a partnership of communication and customer service.

Handling Legal Compliance

Payroll service companies in Canada are up to speed with today’s labour and payroll legislations, and stay on top of new laws and revisions. These experts in payroll and employment law work hard to ensure your firm remains compliant with current regulations. After all, this is why you’ve hired the experts. 

You can rest assured federal and provincial requirements are met and you continue to remain within the law for paying and employing your staff. When to file taxes, how to deduct them, along with inclusion of holiday and vacation pay from wages, and employee classification are key aspects in compliance these Canadian payroll companies have expert knowledge in. 

Compliance is crucial to the payroll department, and these companies know the ins and outs of tax and labour law. This never-ending process is always handled by specialistswith the right knowledge and resources.

Research First

All payroll service companies in Canada provide the same job in principle: They calculate your business’ payroll. However, each companyhas its own additional services to offer, along with different fees and business models. Some stick to the core task of calculating and administering payroll, offering no additional benefits, while others also cover tasks inthe human resources department.

Depending on your company’s needs, you’ll have to decide what you want this company to provide you. In addition, because all firms have different fee rates or pay models, you’ll want to be sure you’re aware of all fees involvedand not blindsided by anyafter you began working with the firm. Some may offer a flat rate, while others include a monthly rate. Compare their costs against your current costsin house to ensure the best deal for your business.

You want to work with a firm you can have clear communication with and one that provides support and updateson the latest payroll trends to make sure your business has the most efficient process. They need to be true experts in their field: from calculating payroll to administering it, deducting and filing taxes, understanding the current employment and tax law, and dealing with any other issues that could crop up. Payroll service companies in Canada are a great alternative to in-house administration, but do your research first to ensure the best fit.

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Everything You Need to Know About Payroll Services in Canada

Posted by Ray Gonder

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Apr 14, 2017 9:00:00 AM

Everything-You-Need-to-Know-About-Payroll-Services-in-Canada.jpgPayroll services in Canada are becoming exceedingly popular with businesses. With payroll being a company’s biggest financial and compliance obligation, it can get complicated pretty fast, leaving business owners overwhelmed about how to deal with it. 

Keep reading to learn everything there is to know about Canadian payroll services.

What They Are and What They Do

The purpose of Canadian payroll services is to handle a company’s payroll department. They calculate wages, benefits, expenses, stat pay, and tax deductions, and they’ll even handle the human resources department if it’s what the company needs. 

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

The idea is to save time for business owners and relieve them of the pressure of handling the department correctly inhouse. For small and medium-sized businesses already struggling to get their work done on time with limited staff and resources, payroll services in Canada are there to take over and reduce stress. 

They also handle compliance matters; they have experts on staff who understand both provincial and federal policies to ensure your business is in line with meeting them, avoiding fines, audits, penalties, and other problems that could come up with the Canada Revenue Agency.There’s a large number of regulations to follow, all of which are intricately detailed and complex. 

Payroll services in Canada work to ease business operations by handling this department externally.They help mitigate businesses’risk with affordable, specialized expertise. They’ll handle human resources administration for companies that don’t have the time or experienced staff, and they’llensure companies are in line with current employment policies, health and safety, and other related matters.

Have Your Terms in Order

Decide for sure if payroll is something you need outsourced or if it can be adequately handled inhouse. From there, knowing what you need the payroll service to provide makes it much easier to find one. Start by making a list of services you want covered,so when it’s time to start researching, you can be sure to find the service that meets them all. From handling expenses and classifying workers to managing HR, if this is what you need, the payroll service has it covered. 

Be fully aware of the fees involved upfront, andknow whether you’re dealing with a flat rate or subscription feeto avoid being blindsided by hidden fees later. All costs incurred should be clear from the start. 

You’ll also have to have your payroll information in order to allow the provider to do the work accurately. Some information you will be required to hand over includes who needs expenses covered, who receives benefits, who receives salary vs hourly wages, and what your policies are surrounding holiday and vacation pay.

The Outsourcing Advantage

It can be costly to employ payroll staff, making outsourcinga popular alternative.Even if you’re knowledgeable, it takes time to total hours and read up on new legislation while understanding the current policies. Small companies and growing businesses need to keep up with demand and workloads, which can be hard to do with a small staff and maxed resources. 

Growth means more time dedicated to payroll and managing new employees. Most businesses can benefit from the help of a payroll provider. Employees previously placed in this department can be strategically switched to other positions where their help is desperately needed. This strategic placing helps your business when your workers can improve their skills and assist in other departments. 

A trained team of experts knowledgeable in all pay, employment, and labour laws can get everything done and ensure you’re complying with the correct standards. Payroll services in Canada will handle those peripheral tasks to save your firm time and money, allowing you to focus on the core business duties. 

Relieve the stress and pressure of getting payroll and its policies right inhouse by outsourcing to reliable specialists who are readily available.

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

Topics: Payroll Processing

How to Find Dependable Payroll Services

Posted by Anna Mastrandrea

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Apr 12, 2017 9:00:00 AM

How-to-Find-Dependable-Payroll-Services.jpgMany small and medium-sized businesses embrace payroll services, saving themselves time and freeing up resources to focus on core business obligations. It can be a challenge to find the right provider though. While a Google search will bring up a number of options, you want to be sure you pick the right fit. 

Dependable payroll services are easier to find than you think.Before settling on a provider, know exactly what you expect of them to make sure you find the best service for your business.

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

Determine Your Business’ Needs

Knowing your business’ needs ahead of time will help you find a reliable payroll service.It’s hard to find the right provider for your company if you’re unsure about what exactly you need done. The right payroll service should be able to handle any issues you throw at it, with competency in all payroll topics, such as protocol, human resources, taxes, labour regulations, and other legal concerns. The more the provider knows, the less you have to worry. 

The right payroll service creates a partnershipwith your business, one with excellent customer service and communication. The service should be a complete expert in all payroll fields and the related human resources department. If you need HR covered as well, you’ll want to establish this so when you look for firms, you choose the right one. 

Mapping out your needs ahead of time will give you a clear visual of exactly which functions you need this firm to manage. Know how much you’re willing to spend and the work that’ll be provided for the fee. Consider how you plan to grow your business over the next while—whether it’s an increase or decrease in staff, so you can find the right servicefor the scale of your company.

Is This Cost Effective?

Dependable payroll services should be cost effective for your business. There’s no sense in using this service if it’s going to cost you more than it would to handle the department yourself—that defeats the purpose. Research the various payroll services out there to determine which one has the best pricing for its services.That price point should cover all the duties you need: payroll protocol, some HR responsibilities if necessary, related paperwork, and even legal advisory services. 

If you fall prey to accounting errors, you’ll face penalties and fines from the government.On a tight budget, these are fees you can’t afford to have. Your margins are already small. Handling payroll using dependable payroll services will help your bottom line by ensuringemployees aren’t over or underpaid and that they receive the right tax deductions. 

Confirm whether the service charges a monthly fee versus a flat rate, and be upfront about the costs involved to avoid any confusion later. 

Payroll services help cut costs in other areas of the business as well because a provider will offer accuracy and compliance toavoid miscalculations and fines. Payroll service fees should be lower than the cost of paying an in-house clerk, which will save you on the costs of a salary, benefits, software, related equipment,training, and maintenance.

Compliance Experts

The legal field surrounding payroll is quite complex, and dependable payroll services relieve you from the stress of understanding intricate employment and tax regulations. With these services,you’re working with experts to relieve you of any headache, knowing your payroll department is accurately managed.Compliance issues, related paperwork, and tax regulations are covered by a team of experts who know the ins and outs of this department and keep up with changing policies. 

Their skills and specialization allow you to stopworrying about costly payroll and tax mistakes that can damage your business’ reputation. They know how to accurately calculate wages, deduct the right taxes, and apply expenses and benefits,leaving your firm in the clear. Dependable payroll services know and understand these laws so your business doesn’t have to worry about it.

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Payroll 101: Learning Canadian Payroll and Taxes

Posted by Ray Gonder

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Mar 29, 2017 9:00:00 AM

Payroll-101-Learning-Canadian-Payroll-and-Taxes.jpgNo matter what type of business you run, whether you’re Canadian-based or employ Canadian workers, you need to know and understand how payroll and taxes work in this country. Learning Canadian payroll and taxes seems daunting and scary, but once you’ve got a handle on the basics, calculating and distributing it will be much easier. 

Here’s the 101 for Canadian Payroll.

What’s Involved

The term payroll visualizes calculating employees’ salaries and cutting each one a cheque as scheduled. It also includes deducting the appropriate tax amount from these paycheques, to eventually send this information in remittance reports to the government. Canadian payroll and taxes have to comply with the Canada Revenue Agency (CRA), the federal agency responsible for administering tax laws for the federal and provincial government, and outlining various payment and tax protocols for businesses, among other things. 

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

Once employees are hired,employers need to collect key information, such as their social insurance number (SIN), and have them complete the federal and provincial TD1 form. This relevant information is needed later tocalculate employees’ tax credit returns. 

Companies are required to deduct taxes from employees. These deductions are reported on employee T4 or T4A slips and filed by the appropriate deadline, as set by the CRA. Employers will know how much to deduct from each employee according to their classification. For example, a full-time staff member will have a different pay rate and tax deduction than a paid contractor. 

Businesses should already have a business number registered with the CRA, and their payroll system in place for sending in remittance reports during tax season.

What Employers Need to Do

Among the many things required by employers, two of the biggest concerns when learning Canadian payroll and taxesare remittance and deductions

Deductions are relatively straightforward, but mistakes can lead to problems with the CRA. Occurring every pay period, pay stubs provided to each employee must clearly indicate the amount deductedfrom each individual source. At the end, the total deducted each year is calculated and sent in a report to the CRA. 

Known as source deductions, employment insurance premiums (EI), Canada Pension Plan (CPP), and income tax are taken off employees’ pay each period. All can be calculated using a deduction calculator the CRA provides online, and by checking the relevant provincial table for amounts applicable to each deduction. 

Deducted every pay period, CPP takes a portion from each individual employee,as well as a share of the employer. Eligible employees are over the age of 18 and under 70, who are in pensionable employment, aren’t disabled, and currently don’t receive CPP or QPP (Quebec’s Pension Plan).EI operates in a similar matter, excluding some specific situations or benefits–as listed on the CRA website. Deducting income tax applies as necessary. If any taxable benefits apply–suchascar expenses for an employee, these need to be added to the total income prior to deductions, or the source deduction amounts will be incorrect. 

Remittances are the total payroll deductions and employers’ contributions submitted to the CRA.The deadline to remit is based on the business’ classification, and can change depending on previous remittance history. A business’ average monthly withholding amount will determine whichtimeline a company follows for submission–whether your business is a regular or quarterly submitter.

Overwhelmed? Outsource!

Learning Canadian payroll and taxes is a large subject. To save time, money, and resources, many small and medium-sized business choose to outsource instead. Third parties and payroll companies have the knowledge, and latest technology to calculate payroll, submit tax reports, and handle related matters correctly and on time.

Payroll is their livelihood, so businesses can trust their expertise to get the job done properly. Whether your business doesn’t have the means, or simply finds it cost-effective, outsourcing your payroll department is always an alternative.

Canadian Payroll Tax Deduction Calculator

Topics: Payroll Processing

Watch Out for These 3 Payroll Tax Mistakes to Avoid in Canada

Posted by Karen McMullen

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Mar 24, 2017 9:00:00 AM

Watch-Out-for-These-3-Payroll-Mistakes-to-Avoid-in-Canada.jpgPayroll mistakes result in serious consequences for businesses and cause undue stress on the business owner. Of all departments to have errors, payroll is the biggest nuisance. 

Employers must be on top of regulations and laws that effect calculating and submitting payroll properly. Below are three common payroll mistakes to avoid in Canada.

1. Misclassification

Employee misclassification is major blunder because it has snowball effectswhen calculating employee deductions, andleaves mistakes in paperwork submitted to the government. Employees need to be classified properly at the start to avoid later legal problems caused by miscalculated benefits, deductions, and wages. 

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

Employees are classified as either contractoror full-time employee. A contractor is generally self-employed, works around a flexible schedule, and requires little to no supervision. A full-time employee works in the office,and requires frequent oversight.The employer sets their work objectives, outcomes, and salary. Correctly classifying employees is necessary for administering correct pay, work perks, and any insurance each employee is entitled to. 

If you’re unsure about how to classify your employees, visit the Canada Revenue Agency website, or a local tax office. Both options provide information about how employeesare classified to ensure you’ve sorted your employees correctly,andwon’t run into future legalissues.

2. Not UnderstandingCompliance

Misunderstanding  the legislation your business needs to ensure it’s operating error-free is another one of the big payroll mistakes to avoid in Canada. Regulations change and requireconstant knowledge to ensure up-to-date compliance. Be familiar with both federal and provincial laws that apply to the region of your Canadian employees. 

Tax deduction thresholds for employers and employees change, and you need to be constantly in the loop.This doesn’t end at payroll. Human resources compliance is integrated as well. Expert knowledge of both employment and human resources regulations that applies to allof Canada and its various provinces ensures your business is compliant and won’t get in trouble with the CRA and government agencies. 

If you really want to save time and money, consider outsourcing to a professional employer organization (PEO). They employ a trained team of experts, and have the accounts and infrastructure in place to process Canadian payroll correctly. Another option isto establish a co-employment deal with an employer of record (EOR). Also knowledgeable in compliance,they’ll handle remittances and payroll on time to ensure your business stays informed and isn’t unknowingly breaking rules.

3. Bad Calculations

Another one of the many payroll mistakes to avoid in Canada is miscalculation. While it relates largely to employees’ salaries, it also includes benefits and tax deductions. Simple mistakes, even just from data entry, can have huge repercussions.

Calculating payroll is more than just writing a cheque. You have to properly account for holiday pay, commissions, even designation of when pay is administered, as set by the applicable legislation.

Commonly overlooked issues include taxable employment income and reporting tax benefits. Taxable employment income cannot be overlooked as it affects certain tax benefits for employees. Particular personal and living expenses paid by employers, base salary (including commissions, gratuities,) have to be accounted for. Unless it’s a specific exemption, all of these amounts have to be calculated. Reporting tax benefits at end of year only is also a problem, and affects income tax liabilities when filing personal tax records. Noncompliance results in penalties or audits from the CRA.

Schedule source deduction remittances according to payroll schedule to ensure you remit on time. Penalties can range from 3-15% when you fail to remit by the government’s deadline. Many of these deadlines depend on average withholding amounts from a previous calendar year, so plan ahead to prepare pay schedules, and include leap years and stat pay to ensure you accurately meet these deadlines.

Tax miscalculations are a severe infraction. Make sure your company has a strong handle on the correct Canadian business taxes.

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Topics: Payroll Processing

How to Pay Your Employees Who Run for the Canadian Board While Trump Is President

Posted by Corinne Camara

|

Mar 15, 2017 9:00:00 AM

How-to-Pay-Your-Employees-Who-Run-for-the-Canadian-Board-While-Trump-Is-President.jpgThroughout the election, Canada began to look incredibly appealing to our southern neighbours. If you’ve noticed your U.S. staff decreasing and a rise in Canadian mailing addresses, you need to learn how to pay your employees in Canada. 

It’s crucial for U.S. companies to accurately manage their Canadian employees to avoid employee dissatisfaction and potential legal problems. Below are various issues to keep in mind for accurate payroll administration in Canada.

Start Researching

Now that you have to pay employees in Canada, you need to familiarize yourself with the applicable federal and provincial legislation. Federal legislation will apply the same across the country, but provincial legislation will vary depending on the province your employee lives in. 

Investigate and research as much information as possible to ensure your business meets current standards. You’ll need to know aboutemployee compensation packages, minimum wage rates, hours worked, how to calculate overtime, holiday, and vacation pay, and more. 

If you’re still unsure that you’re following all the necessary regulations, consider legal adviceor a third-party provider thatcan guarantee compliance.

Calculating Wages

Your relocated employees still expect to be paid, so you need to make sure you know how to calculate wages.Items to include start with applicable additions such as expenses, bonuses, tips, and even commissions, which will vary depending on how your workers are classified. 

You need to know when to distribute payroll as well, and if any provincial rules dictate set times. Will it be weekly, biweekly, monthy? The applicable provincial legislation will have a standard in place. For example, British Columbia specifies employees are paid at least twice a month, but Ontario has no minimum time period—only that employers set a recurring pay schedule.

Less the Deductions

Proper deductions and withholdings will save your company from later headache. Known as source deductions, these have to be calculated for each employee to determine accurate pay. It includes federal tax and any applicable provincial deductions that apply.

Accurate calculation means amounts may differ among employees due to their total income and work location.To correctly pay your employees, you need to include in paystubsother aspects,such as health coverage, union dues, and workers’ compensation.

Annual Obligations and Government Remittances

Here’s where improper withholding calculations will come back to bite you.The Canadian government requires companies to issue T4 statements for every employee, of which the employees also receive a copy. This is used to calculate remittance.

The money withheld for federal tax has to be remitted every year to the federal government, by cheque or money order. It has to be calculated and submitted by the due date, and errors in withholdings can result in fines and penalties.Accurate reporting is necessary because it shows the government your company’s current situation.

Still Lost? Outsource!

If this already sounds overwhelming and like an additional strain your company would prefer to avoid as much as possible, consider outsourcing to a Canadian professional employer organization (PEO).

A PEO acts as the legal employer to your employeesin Canada for HR, payroll, and government compliance, ensuring employees are paid on time and correctly, and payroll administration is complete (such as government remittances), soyour business can continue operating with little complication north of the border.

Working with a PEO creates a co-employment deal relieving you of the legal responsibility of your Canadian workers while ensuring accurate and prompt payment and compliance. With this expanded sales force, the sales person is still controlled by the U.S. company, but the Canadian EOR takes employees on as its own to guarantee legal and government compliance. 

This alternative is a great option because the PEO is already established in Canada and is trained in current compliance and legislation.

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Topics: Payroll Processing

Why Use Payroll Outsourcing

Posted by Stacey Duggan

|

Mar 13, 2017 9:00:00 AM

Why-Use-Payroll-Outsourcing.jpgPayroll is one of the biggest hassles for businesses. Writing cheques, calculating payroll, paying taxes, and maintaining accurate records takes time away from core objectives. When you own a small business, the time and affiliated costs devoted to payroll management means less time and money spent improving your business’soverall features. 

Tocombat this, small businessesareturning to the expertise of third parties. Read on to discover how payroll outsourcing could help your company

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

Reliability and Knowledge

When you outsource payroll to a third party, you can be sure of expert knowledge and a reliable team. 

It’s hard to keep up with new regulations, changing tax rates, and revised government forms. You can be sure third-party firms have this covered and are able to handle any upcoming changes because their job requires it. They know the ins and outs of payroll processing, compliance and HR matters, ensuring your business meets government standards. 

The expertise outsourcing firms provide means your business is less likely to submit incomplete forms, which would result in penalty charges for late filings and missing paperwork. Outsourcing payroll to a third party ensures correct and complete submission of applicable forms and reports required by the government.

Save Time and Money

With your payroll and HR departmenttaken care of, your employees can get back to focusing on your business’s chief goals. 

The time spent maintaining accurate accounting reports, submitting tax receipts, and filing employee insurance can be reallocated to marketing, strategy, customer service, and other daily chores. Staff who previously dealt withpayrollcan now concentrate on principle business matters. 

Time saved is money saved. As third parties operate at volume, they can handle your business’s responsibilities for less than in-house costs, helping reduce your overhead fees. 

Calculating payroll is a time-consuming, detail-oriented task that requires substantive review. Payroll outsourcing gives that time back to small businesses, so they can continue refining the key characteristics of their business.

Don’t Worry about a Contingency Plan

Handling payroll in-house means there’s always a chance of staff leaving, whether for retirement or a job elsewhere. 

This risk is eliminated when you work with a provider, because you don’t have to fear staff, andtheir skills, walking out the door. Outsourcing payroll removes two burdens: spending time and money in-house to hire someone new, and training said person. 

When you delegate payroll to an outside firm, you always have a team of experts within reach, ready to handle your payroll matters.

One Team = Multiple Departments

The payroll department doesn’t end after calculating and distributing payroll. It also covers human resources. You have to account for benefits, pension plans, worker’s compensation, sick pay, and more.

Many providers offer additional services to meet your firm’s specific needs. Trained professionals have the skills to handle your distinct HR concerns. With these responsibilities taken care of, your team has more time to concentrate on business improvement and overall efficiency.

Most firms are flexible with the services they offer, and for a small fee, can easily integrate their information with your company’s demands.

Won’t Be Left Behind

Managing payrollis a meticulous duty. Payroll outsourcing requires constantawareness of current pay rates, tax law, employment standards, and the right technology to ensure these tasks are done properly.

Third parties keep pace with filing, technology, and other timely updates.They understand the specifics of legislation that apply to your business, so you can be sure your payroll department is in line with federal and provincial standards.

Legislation isn’t the only thing to be aware of—updated technology is essential to completing and filing your forms properly. Continuously updating your firm’s softwareto the most current version is an additional, and sometimes costly, expense. Without it, however, the wrong tax tables can leave errors in your records. Payroll outsourcing provides you with a team that is sure to have the latest technology at its fingertips to get the job done properly.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Processing

3 Reasons Why You Can’t Handle Payroll on Your Own

Posted by Anna Mastrandrea

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Mar 10, 2017 9:00:00 AM

3-Reasons-Why-You-Cant-Handle-Payroll-on-Your-Own.jpgPayroll is one of those departments that gives companies the most headache. It has to be 100% accurate to correctly pay employees,and itrequires extensive review.With time and resources precious commodities, you’realready trying to make the most of your business hoursto establish growth and profit. 

Many small businesses investigate alternative sources and thirdparties to assist them. Of the different departments to farm out-of-house, this onetakes the lead. 

 

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

Here are three reasons why you should consider outsourcing your payroll department.

1. Lacking Key Resources

You need a few things to run your payroll department effectively and error-free. To keep this department on track, this tends to include the latest software, secured servers, and expert staff. 

Ensuring your office is up to date with modern software is both a time-consuming research project and an additional expense each year. For small businesses, this means putting more money into maintaining accurate software versus outsourcing a firm who will be sure to have state-of-the-art technology available. Without current software, you can run into reporting problems when it’s time to file taxes.The snowball effect of submitting incorrect tax tablesand reports can cost your business fines and penalties. 

Another concern is data security. Keepingsensitive data from the eyes of intruders requires Alcatraz-encrypted servers. On top of this being an expensive fee to pay in-house, it also means constant worrying aboutwhether or not your employees’ information is protected. This is a pressure that can be relieved with outsourcing. With a third party, you can be sure they have the up-to-the-minute software and highly encrypted servers to verify your data is safe. 

Processing salaries, cutting cheques, filing taxes, and managing human resources require thoroughanalysis. As a small business trying to make the most of every hour, dedicating just one or two people to these tasks takes them away from the heart of your business.

2. Ensure Accuracy

This is a department you don’t want to get wrong and can be the most worrisome for accurate recording.Employees expect to be paid correctly and on time. Miscalculation results in negative effects for your business: bad reputation, dissatisfied workers, and fines from government agencies. 

Outsourcing these tasks to a third partyprovides you a team with diligent knowledge and rigid trainingwhokeep up with changes in all aspects of this department. They understand how to garnish wages, withhold CPP and EI deductions, calculate stat pay, and more.Using a team of outsourced experts relieves the pressure of wondering whether or not your payroll is calculated correctly in-house. 

While errors and mistakes can happen, you don’t want it to be a frequent occurrence. A third party provides the reassurance that your payroll is calculated correctly. You wouldn’t hire a veterinarian to fix your car, so why recruit employees without the right knowledge? Working with specialists ensures correct distribution of payroll so your company distributes it precisely and on time.

3. Lack of Legal Knowledge

The legislation pertaining to company operations is complex and lengthy.All organizations need a strong grasp of understanding, and awareness of any revisions that occur. Again, time dedicated to this upkeep takes it away from central tasks that improve your business. With a smallstafflist, it’s hard to shift time and resources around to make sense of the correct accounting and employment regulations.

Outsourcing supplies you a team with in-depth knowledge of provincial and federal legislation, ensuring your company is compliant with standards regardinghuman resources, tax, pension, and garnishments. Mistakes in your paperwork are significantly lowered when you’ve got a team of professionals handling it for you.

Find a company with experience, knowledge, and a great reputation to help your business succeed and reduce the burden of handling payroll in-house.

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

Topics: Payroll Processing

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