Home Blog

Blog

Payroll Solutions for Small, Medium, and Large Canadian Businesses

Posted by Stacey Duggan

|

Jun 8, 2015 9:00:00 AM

Payroll_Solutions_for_Small_Medium_and_Large_Canadian_BusinessesWhether you have a small business with fewer than 50 employees or a medium- to large-sized business with many more, having online payroll solutions is a great way to streamline your human resources needs. Online payroll processing can also include employee self-service for benefits enrollment, pay stub look-up, and other services that save you the time of having to dig through records yourself. These payroll solutions will have you spend less time administering payroll and more time doing what you do best: running your business.

With online payroll processing, you can rest assured that you are getting a secure and simple way to submit your payroll. This can be done by having your employees clock in or log their own hours. With payroll reporting software, you or a human resources specialist can approve those hours, making your payroll secure and simple. These services can also include web portals and automated telephone systems, so your employees can access their payroll and benefits information any hour of the day. If you have your own human resources department, their tasks will be simplified, freeing them up to focus on larger projects and services for your company. If you don't employ payroll specialists, however, then your company can look into outsourcing through your payroll solutions provider.

In addition to online payroll programs, your company can also benefit from outsourcing human resources-related tasks that would otherwise cost you extra time and money to administer yourself. Having a company that specializes in payroll, human resource services, employee benefits distribution, and other services related to Canadian payroll and employment will ensure that your employees receive the payments and benefits they deserve. This service is especially helpful financially for small businesses with fewer than 50 employees, but medium- and large-sized businesses can benefit as well.

By outsourcing your payroll solutions to a company that specializes in payroll and HR solutions, you can focus on running your core business without having to worry about administering these small tasks. As an added bonus, come tax season, a payroll and HR solutions company can help prepare your payroll taxes and other records to ensure that you comply with Canadian tax codes. So don't get stuck crunching numbers and letting your business suffer because of paperwork. Find a company that offers payroll solutions for your small-, medium-, or large-sized business today and take the guesswork out of your human resources needs.

7 Signs It's Time to Outsource Payroll

Topics: human resources, payroll solution

How a Payroll Service Lets You Better Take Care of Your Business

Posted by Karen McMullen

|

Oct 30, 2013 9:39:00 AM

How a Payroll Service Lets You Better Take Care of Your BusinessIf you look at the average day of someone trying to run a business, you’d be amazed by how little time they get to spend actually running the business. It’s not unusual to find that the majority of time is taken up by tangential activities like payroll. While all of those activities are vital to the operation of the business, they aren’t directly related to production and profitability. Most managers and owners would be happier, and more successful, if more of their time was dedicated to their core business pursuits.

A Better Use of Your Time

By using a payroll service, you can shift more of your attention back to business-oriented tasks, and away from tangential needs. Payroll can be time consuming, taking you away from other, more profitable, tasks. With a payroll service, you get all of that time back to focus on building your business. You can spend your time poring over timesheets, or you can spend it developing new products and processes to increase your profits.

Nobody Does it All

There are things you do well, and things you don’t do at all. You probably don’t personally deliver your products to your customers. Why not? Because shipping services have the training, infrastructure, and personnel to do it more efficiently. Hiring a shipping company is a more efficient use of your time and money. Payroll service is no different. You can invest the time and money to do it yourself, but there is a better option. Like shipping companies, a payroll service provider focuses on doing one thing, and doing it extremely well.

Getting it Right

Payroll isn’t as easy as just adding up hours worked and withholding taxes. If it were, everybody would be doing it. The legal regulations and requirements governing payroll stretch out over hundreds of pages, and change frequently and without warning. Different employee classifications can completely change how payroll must be calculated. Even something as simple as working at a different job site for a day can necessitate changes to how a worker’s pay is handled.

It takes a lot of time to learn all of the regulations, and even more time to keep up with the changes. Mistakes can be extremely costly. You may try to save money by handling payroll yourself, only to end up losing more money to fines and back pay. With a payroll service provider, you can save the time for more important business tasks, and rest easy knowing that your payroll is legally compliant.

Do What You Do Best

You know your business like nobody else does. That’s why you should be focusing your time and energy into making it the best business possible. A payroll service provider knows payroll like nobody else does. That’s why you should let them handle your payroll needs. You’ll get more time, and better results, with a payroll service provider.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Service Provider, Outsourced Payroll Service, Payroll, Canadian Payroll Service, Payroll Calculator, payroll solution, Payroll Deductions, Dependable Payroll Service

Why Hiring a Payroll Clerk May Be the More Expensive Option

Posted by Stacey Duggan

|

Oct 21, 2013 9:00:00 AM

Why Hiring a Payroll Clerk May Be the More Expensive OptionAs a company grows, it becomes necessary to find a permanent solution to payroll processing. With the many details, regulations, procedures, and filings involved with payroll processing, delegating payroll responsibilities to an existing employee, or trying to take care of it yourself, becomes an unsatisfactory option. Some business owners or managers try to solve the payroll puzzle by hiring an in-house payroll clerk. This solution is probably better than trying to manage payroll yourself, but it has some serious drawbacks.

HR Overhead Costs

When you hire a payroll clerk, you take on numerous new overhead costs. First off, there's the cost of hiring, which includes advertising the job, reading through resumes, interviewing, and getting your new employee integrated in your payroll system. There's training to consider, which could involve off-site training, courses, and conferences to get your new employee up-to-speed with current payroll regulations. Your new payroll clerk needs a place to work, equipment, and software. Additionally, you'll need to consider the costs you incur with a new employee: benefits, insurance premiums, your portion of CPP contributions and EI premiums, and paid vacation and sick days.

Vacation/Sick Days

Payroll never sleeps. Your employees need to get paid, and your government remittances must be submitted continually, whether or not your payroll clerk gets sick, takes a vacation, or needs personal time away from the office. Remittances must be sent in on time if your company is going to avoid fines levied by the CRA, and a single payroll clerk managing payroll processing for a whole company may have a hard time meeting every single deadline. Outsourced payroll processing, on the other hand, can manage payroll no matter what. They can guarantee that everything will be done in a timely fashion, and they don't require vacation days or sick leave.

Turnover

A good payroll clerk may get a firm grasp on everything it takes to manage your payroll effectively. Getting to this point takes time and consistent effort because payroll is complicated, and the regulations change from year to year. What will you do when your expensive, painstakingly trained payroll clerk gives notice and leaves your firm? You'll be back at square one, looking for a new employee who doesn't understand the ins and outs of your company and may require substantial training before you can feel comfortable with the state of your payroll again.

These problems can be avoided by turning your payroll processing over to an outsourced payroll processing company rather than hiring your own clerk. With outsourced payroll processing, you don't have to worry about adding to your HR overhead costs. Payroll won't require any square footage of your office space, it won't require that you buy any new equipment or specialized software, and you won't have to pay additional employee benefits. You also won't have to worry about the state of your payroll when someone wants to take a vacation. You'll just know that it always gets done faithfully, no matter who is in (or out) of the office. Finally, there are no turnover worries when it comes to outsourced payroll processing. Although your contact at the outsourced payroll processing company could change from time to time, your payroll will always be handled professionally and in a timely manner. Compared with outsourced payroll processing, hiring your own in-house payroll clerk may be the more expensive option.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Service Provider, Outsourced Payroll Service, hire payroll service, Best Payroll Calculator, CRA, payroll solution, Dependable Payroll Service, Employee Training and Development, Great Payroll Service Provider, Hiring a Payroll Clerk, Payroll Expertise

3 Ways Payroll Processing Can Be Made More Efficient

Posted by Ray Gonder

|

Oct 4, 2013 4:18:00 PM

3 Ways Payroll Processing Can Be Made More EfficientProcessing payroll adds a thick layer of administrative work to your already hectic days. Payroll is complicated, ever-changing, and annoyingly details-oriented. In an effort to streamline operations and be more efficient, Canadian employers generally opt for one of the following three methods.

1. Forget About It.

Sure, you'll still pay your employees, but you won't bother with all that troublesome CRA stuff. Think about it: if you didn't have to maintain your CRA account, calculate deductions, take care of payroll remittance, and mess with those troublesome T4 Slips and year-end reports, you'd be as free as a bird. You could get so much more done. You could actually focus on the exciting and profitable parts of your business.

There's just one problem with this method of processing payroll . It's so illegal that your business will probably not last very long. The first month or two that you fail to deduct and remit payroll taxes from your employees' pay cheques, the CRA will levy fines, penalties, and interest on your company. If you still persist in ignoring your legally obligated payroll duties, you may be prosecuted, fined again, and possibly even imprisoned. Clearly, this is not a good option for streamlining your company's payroll processing.

2. Hire a Full-Time Payroll Clerk.

If you've decided that the first option is not for you, you might consider hiring a full-time payroll clerk. A full-time payroll clerk would have time to take care of all the details for you so you would be free to manage your business and do what you do best. Essentially, you'd be hiring an employee to take care of administrative work that doesn't directly benefit your business. And you'd have to pay for benefits for this employee, including employer contributions to benefits and Employment Insurance.

This gets to be quite expensive, and although you'd have a person on your staff to manage the day-to-day headaches incurred by processing payroll, you're still ultimately responsible for this person's job performance. If your full-time payroll clerk doesn't have the experience to manage complicated payroll issues, or if the laws change and your clerk is unaware of the changes, you're still responsible for any problems. So while this option is better than the first option, it still comes with some drawbacks. Is there a better way?

3. Outsource Payroll Processing.

Wise employers know better than to neglect payroll responsibilities or to hire a full-time, on-staff worker to handle them. They know that forming a partnership with a payroll processing service provider can get them expert service at a reasonable price, leaving them time to focus on running and growing their businesses.

Payroll service providers like The Payroll Edge can guarantee that your payroll will be processed correctly every time, and they have experts on-staff who can answer tricky questions and find solutions to unusual circumstances. They have contacts at the CRA, so it's easier for them to reach governmental agencies to get specific answers than it would be for you or for one of your employees. Best of all, a reputable payroll processing firm will understand the details of your payroll, ensure its accuracy, and know how your payroll affects your company's legal compliance. A partner like this is an incredible asset to your company.

If processing payroll has become a heavy burden for you and for your company, do yourself the favor of investigating the third option: outsourcing payroll processing. To learn more about how outsourced payroll processing can benefit your company, contact us at The Payroll Edge.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Service Provider, Payroll Service, Payroll, Employee Payroll Deductions, Government Compliance, Best Payroll Calculator, CRA, payroll solution, Dependable Payroll Service

Three Top Reasons to Consider an Outsourced Payroll Service

Posted by Ray Gonder

|

Jun 27, 2013 9:00:00 AM

Three Top Reasons to Consider an Outsourced Payroll ServiceDepending on how many roles you play in your company, there could be dozens of reasons to outsource to a payroll service. Payroll is a job that never really ends, so handing it off to professionals allows you to spend more time on running and operating your business. When you are less concerned about government compliance and making sure everyone gets paid correctly and on time, you have less stress and can focus on the more important aspects of your work.

1. Save Time

From the moment you hire an employee, you have payroll responsibilities to manage. As part of the hiring process, you must collect information on your new employees and fill out tax forms in their behalf. At the end of each calendar year, you will fill out T4 forms and send year-end summaries to government reporting agencies. And that doesn't include your ongoing payroll responsibilities.

Each time you process payroll, you will calculate benefits and deductions from each employee's pay cheque, figure out payroll amounts based on tables published for the province or territory in which each employee reports for work, and send remittances to several different government agencies, each of which has its own due date throughout the month.

As you can guess, all of these tasks can take a great deal of your precious work time, time which could be much better spent in the service of managing and growing your company.

2. Reduce Stress

Not only is payroll time-consuming, but it can also be highly stressful. When you handle payroll yourself you must open and operate a payroll account with the Canada Revenue Agency (CRA). Of course, this involves time and energy setting up the account initially, but the real stress comes in your day-to-day operations. Each time you run payroll, you'll have to check contribution rates, maximums, and exemption charts for income taxes, CPP contributions, and EI premiums.

If employees have questions or if the rules and regulations change (which they inevitably do), you have to make adjustments, possibly mid-payroll cycle. If you're not an expert in Canadian payroll, these adjustments can be quite stressful, especially when you consider that if miscalculate, you could face fines.

3. Stay Compliant

And that leads us to a third reason to consider outsourcing payroll service: to stay compliant. When you take care of your payroll yourself, you run the risk of non-compliance. The laws, rules, and regulations surrounding payroll can be confusing, and to make matters worse, they change as laws and guidelines change. The following is an example of why it's important (and difficult) to stay compliant.

A recent minor change could make a big difference for your employees, but many Canadian employers simply don't know about the finer points of payroll tax deductions. If an employer chooses to pay for third-party short-term and long-term disability benefits, the insurance benefits will be taxable. This rule also applies if an employer funds their own disability program. If you choose to fund such a program, as the employer you will claim a deduction on line 229 of your T1 premiums, and you may do so for all premiums paid since 1968 that you haven't previously claimed.

Such fine points of payroll taxes are known only to those who are experts in the field or who spend an enormous amount of time keeping up on all the latest changes to payroll rules and regulations.

If you want to save time, reduce your stress, and stay compliant with Canada's payroll tax laws, it's time to consider outsourcing your payroll service. For more information, contact us at The Payroll Edge. We're ready to help.

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

Topics: Payroll Service Provider, Outsourced Payroll Service, Payroll Service, Best Payroll Calculator, payroll solution, Payroll Deductions, Dependable Payroll Service, Great Payroll Service Provider

How to Do Payroll in Canada

Posted by Ray Gonder

|

Jun 25, 2013 11:49:00 AM

How to do payroll in Canada 2If you were hoping that cutting cheques would be the sum total of your payroll responsibilities, you're in for a surprise. Canadian payroll is a bit more complicated than that. It can be challenging for US-based companies to adapt to payroll methods and guidelines in Canada, since the laws and regulations are quite different. It can also be difficult for new small businesses to get the hang of payroll responsibilities, especially when they're dealing with all the other details of running a small business. To help you get your bearings, we've put together a short (but not comprehensive) list of payroll tasks that you'll be responsible for.

Remittances

Calculating deductions and benefits contributions is time-consuming and tedious because you have to calculate each employee's individual deductions depending on their wages and province of work. Once you've done all of this paperwork, however, you're not done. You still need to remit the deductions and contributions to up to three separate government agencies, which each have their own due dates. If the remittances are not submitted properly, you could be fined.

Year-end Requirements

Your ongoing payroll responsibilities should be accurate throughout the year, but at the end of the year, you're also charged with reporting to tax authorities about the filings made by your company. These filings are from both the employee and employer perspective of taxation. You must also fill out T4 forms for each of your employees with an understanding of how to report certain things like commission and non-taxable earnings.

Employee Inquiries and Ongoing Legislative Changes

Payroll isn’t just paying someone an hourly wage x the hours they work. It’s much more complicated than that. There are taxable and non-taxable earnings, employer and employee benefit contributions, overtime, taxation maximums, vacation, and many, many more variations to consider. Add to that the fact that payroll legislation is a moving target and can change without notification. Managing payroll can be a confusing, time consuming task.

Your employees expect that they are to be paid correctly and on time. A paycheque is at the core of why they are working for you and is continuing incentive for them to do their very best to keep your company productive. Not being able to provide a regular, correct pay or to answer their payroll questions correctly can cause any employee to become disgruntled.

At The Payroll Edge, we can manage the above tasks for you and more. Our payroll experts are always on top of the latest tax-related legislations. They will field your employees' questions and guarantee that your payroll will be done accurately and on-time.

In addition, we offer premium human resource services as well, which can lighten your load considerably. These services include workplace injury claims management; consultation for employee review, conduct, termination, and layoff; and employment agreements, which protect your from legal action.

We know that you're an expert at what you do, but most likely, you're not a full-time payroll specialist. That's where we come in. We have over 25 years of experience with Canadian payroll. We know the ins and outs of the Canadian payroll, and we process over 5,000 pay cheques each week for companies in all Canadian provinces. If you'd like to spend more time focusing on your business and less time dealing with tedious paperwork, give us a call. There's real peace of mind that comes with knowing that your payroll is always taken care of by experts. Instead of staying up late the night before payroll is due every couple of weeks, you can continue to focus on doing what you do best: running and growing your company.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Payroll Tax Calculations, Canadian Payroll Service, Best Payroll Calculator, payroll solution, Payroll Deductions, Great Payroll Service Provider, Small Businesses Payroll, Payroll Expertise

Five Ways to Increase Payroll Efficiency

Posted by Ray Gonder

|

Jun 19, 2013 9:00:00 AM

Five Ways to Increase Payroll EfficiencyAre you ready to spend less time on payroll and more time running your business? Maybe what your business really needs is reorganization in your warehouse or the hiring of a few new employees. Make no mistake about it, these tasks will consume a great deal of your time and energy. But if you're constantly concerned about processing payroll, you may not have the resources you need to accomplish them.

If you find yourself in this situation, it may be time to find ways to increase payroll efficiency. By increasing efficiency, you'll find yourself with more time on your hands to take care of the tasks that will really make a difference to your business. Let's take a look at five ways to increase payroll efficiency at your firm.

1. Delegate Payroll Processing

Payroll must be processed year round, and this continual drain on your time and resources saps your company of much-needed attention. Ongoing payroll processing involves attention to detail. Each employee's deductions including Canada Pension Plan and Employment Insurance must be calculated correctly along with their taxable and non-taxable benefits. Employer deductions including payroll taxes, workers compensation and the Employer Health Tax in Ontario, must also be calculated correctly based on the rules of the Province the work is being performed in.  These deductions must then be remitted to the various government agencies often with different payment deadlines.  By having a payroll service handle this ongoing work, your company will run much more efficiently.

2. Outsource year-end tax reporting

The end of the year can be a particularly trying time for a company. You may be wrapping up final reports and recovering from a busy season, and this is not the time of year to add extra payroll duties to your already busy schedule. Assign a payroll service to handle direct reporting to the proper tax authorities and to file statements on your behalf. You can wash your hands of tax responsibilities by hiring a payroll service to handle them for you.

3. Guarantee Compliance

The last thing you need is to have a government agency questioning the accuracy of your payroll reports and remittances, but this happens when businesses handle payroll without a firm grasp on the details and ramifications. You can operate more efficiently when you hire a payroll service that guarantees on-time, accurate employee payroll that is handled by certified payroll professionals.

4. Outsource Payroll Complications

Having employee’s means much more than just paying them.  It means trying to answer questions about payroll that just aren’t black and white to something more serious like calculating termination and filling out a Record of Employment correctly. When you have a Certified Payroll Professional only a phone call away you can be guaranteed that the questions are answered correctly by someone who understands the intricacies and nuances of Canadian tax law.

5. Rely on Human Resource Professionals

Let’s face it, being an employer comes with much more responsibility than just payroll and scheduling.  There are other things to consider such as employment agreements, training, performance issues and terminations.  Then there are the bigger issues such as workplace injuries and government audits. With a payroll service provider who also has expert and ongoing knowledge of these ever-evolving key areas, your payroll and HR management are taken care of seamlessly.

By increasing payroll efficiency in one or all of these ways, you'll gain time to improve your business and run your firm the way you want to. You'll also find yourself much less frustrated when you don't have to deal with excessive paperwork and details. Working with government agencies can be difficult, especially if you're unfamiliar with their policies and procedures. Turn these tasks over to professionals who have years of experience in both payroll and HR. You may discover that you've never enjoyed your work more. Contact us to learn more about our services.

Topics: Payroll Service Provider, Canadian Payroll, Payroll Service, Canadian Payroll Service, Best Payroll Calculator, payroll solution

How to Do Payroll for Canadian Companies

Posted by Ray Gonder

|

Jun 3, 2013 9:58:00 AM

how to do payroll for canadian companiesTaking care of payroll for a Canadian company? If so, you've got some very specific rules and procedures to follow, and it's important to get everything right. If you've set up a business and hired people to work for you, it's your job as an employer to pay them properly, and that means operating and maintaining a CRA account, collecting information from employees, making appropriate deductions, remitting these deductions, calculating and remitting your employer taxes, and taking care of year-end reporting. Let's examine these tasks in more detail.

Employee Payroll Tax

As soon as you hire employees, you must open a payroll account with the Canada Revenue Agency. This account will be used for remitting your employees' payroll deductions. Once your set up an account with the CRA, you will collect information from employees, such as their SIN numbers and work status. Ideally, this should take place as part of the hiring process. 

For each pay period, your payroll duties should include deducting funds from your employees' paychecks for income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums. For each of these deductions, you'll need to refer to the appropriate provincial or territorial tables where the employees report for work. Every province has different employer taxes and rates for those taxes. This becomes especially complicated when you have employees in different provinces because you'll have different calculations and different government accounts. Remember that if you employ any workers in Quebec, you'll need to deduct funds for a different pension plan, the QPP (Quebec Pension Plan).

Employer Payroll Tax

Not only do you have to worry about calculating your employees' taxes, but you also have to pay employer taxes, over and beyond your employees' taxes. These employer taxes include the Employer's percentage of EI and CPP as well as worker's compensation and the Employee Health Tax (EHT) in Ontario.

Remittance

Once you've tabulated the deductions for each employee, it's your responsibility as an employer to remit the funds to the CRA. Once you remit for the first time, you will be sent a remittance form to send in when you take care of monthly payroll. For the first time, however, send a letter explaining that you are a new remitter, along with a check for the total remittance amount, and be sure to send along your Business Number.

If you only had to remit to only one agency, this task wouldn't be too difficult, but you have to deal with three different government accounts (payroll tax, EHT, and worker’s compensation) on a regular basis. These accounts often have different remittance frequencies; an average company will have remittances due to three different agencies during the month, but the remittances will all be due at different times.

Year-End Reporting

At the end of the calendar year, you have some payroll work to do. You must complete a T4 slip for each employee, summarizing all tax, CPP, and EI contributions for the year. After you've completed all of your T4 slips, you will complete a T4 summary form, which will be submitted to the CRA. These forms will be used to help employees and the CRA reconcile and tabulate taxes, contributions, and premiums for the year.

Staying on top of payroll can be very time- and resource-consuming for a small business, not to mention the administrative headaches involved. If you find that you'd rather source out these tasks to a professional payroll service provider, contact us at The Payroll Edge. For more than 25 years, we've been taking care of payroll so our clients can take care of their businesses.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Service Provider, Canadian Payroll, Payroll Tax in Canada, Payroll Service, Payroll, Canadian Payroll Service, payroll solution, payroll provider

How to Choose A Payroll Service Provider in Canada

Posted by Ray Gonder

|

May 17, 2013 12:53:00 PM

how to choose a payroll service provider in canadaA payroll service can change your job overnight. Instead of spending hours each week looking at figures on tables, calculating deductions, printing up checks, and distributing them to your employees, you can focus on innovation and growing your business. But to truly optimize the benefits of a payroll service, you've got to choose the right one to begin with. Here's how to choose a payroll service provider in Canada.

Ask for References

A successful payroll service provider will be more than happy to provide you with references. In fact, they'll encourage you to contact their clients so you can hear for yourself how helpful their services are to their customers. Follow up by contacting these references, and ask specific questions: Does the service return your phone calls promptly? Have you ever had any problems with tasks not being completed on time? Do you have a good working relationship with the payroll service provider? Is the payroll service available for answering questions?

Check on Solvency

When you choose a payroll service provider, you entrust that provider with a large amount of sensitive information, and you don't want to have to start all over again if the provider goes out of business. Find out how long the provider has been in business – a long-standing payroll service provider with many clients is less risky than a brand new provider with no clients. And ask their customers about timeliness of payroll payments to their staff. It’s a big red flag if payroll dates have ever been missed or delayed. 

Ask About Services

Ideally, you want to be working with a “Full Service” provider. By that we mean:

  • Do they make remittances to every government agency, or just the CRA? Some payroll companies will remit just payroll taxes, EI and CPP, but will not remit to worker’s comp or EHT in Ontario, leaving it up to their clients to wade through all their payroll data and make their own filings (and hope they have not overlooked any compliance details). 
  • Do they just “print cheques”, or do they scrutinize the actual payroll data checking for errors before they process it? 
  • Can you call them up and speak with an employment expert to get advice about HR or how to interpret the latest regulatory changes, or do they just point you to some online pdfs?
  • What are the qualifications of the people at the payroll company – are they certified for payroll and human resources? Or do they just have low-level data entry clerks with no idea about HR matters like overtime, vacation and stat pay.

Procedures

Different payroll service providers have different ways of operating, and you should look for a provider that makes life easy for you. For example, the way you "call in" or input payroll information could potentially have a large impact on the way your own business operates. Does the provider have a way for you to authorize payments if you're out of town? Can you input information online? How many people can be authorized to give payment information to the payroll service provider? These are important questions to ask when you're searching for a payroll service provider.

Year-End Services

At the end of the year, all Canadian employers are required by law to prepare certain documents for employees and for the CRA. As you're doing your research, ask specifically about preparation of T4s. You'll want a payroll service provider whose services are comprehensive.

Changes

In the business world, the only thing that's constant is change. Old employees leave, and new employees are hired. Salaries and wages change, and tax deductions vary. Therefore, you need to know if it's easy to make changes to your payroll through your payroll service provider. Does every change require major paperwork? Can you handle changes in payroll online or with a phone call?

If you do your research well, you'll find a payroll service provider that fits your business perfectly. To find out more, contact The Payroll Edge to find out what we can do for your business. 

7 Signs It's Time to Outsource Payroll

Topics: Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Payroll Service, Payroll, Canadian Payroll Service, payroll solution, payroll provider

Why Using a Payroll Service Makes Sense

Posted by Ray Gonder

|

May 9, 2013 11:08:00 AM

why using a payroll service makes senseMost businesses know that it doesn’t make any sense to try and do everything themselves. They focus their time and energy on their core pursuits, and outsource other business needs to contractors and specialists. This allows the business to really focus on their clients, services, and products, without the distraction of tangentially related business tasks. By outsourcing these tasks to seasoned professionals, business owners and managers also enjoy increased peace of mind. Payroll services are no different. There are many advantages to outsourcing payroll to a professional service company. Businesses that have come to find it an irreplaceable necessity.

Exponential Experience

For most small- to medium-sized businesses, payroll is just one of many tasks performed by an office manager or HR personnel. They crunch the numbers and issue the cheques weekly, bi-weekly, or monthly, depending on the company’s pay schedule. Since they don’t do it all the time, their experience and expertise are necessarily limited. This increases the amount of time needed to perform the tasks, and also introduces an increased chance of errors or omissions.

A payroll service handles the same tasks every day of the week, for dozens or even hundreds of companies. Every day is payday for someone, somewhere. The service employs dozens of people who do nothing but handle these services all day, every day. Every time an office manager performs these duties, the service has already done those duties countless times. They are constantly gaining experience, updating their skills, and perfecting their workflow.

More than a Paycheque

There’s more to processing payroll than just calculating how much withholding to deduct. There’s stat pay regulations adherence, vacation allowances to track, and insurance premiums to reconcile, never mind the other potential employer burdens the company may be responsible for. An in-house office manager may not have the expertise or resources to address and deal with complex HR matters.

With an outsourced payroll service, businesses gain the advantage of additional expert services and advice. A qualified provider can assist with contract negotiations, workplace training, accessibility compliance, safety inspections, and more. And in the event of an audit, they can provide advice, assistance, and representation to help defend the business. An experienced payroll service can take on almost any task related to workers in the workplace. They can even manage independent contractors, ensuring that they don’t end up reclassified as employees, potentially costing the business thousands in fines, penalties, and repayments.

Why go it Alone?

Successful businesses typically do few things, and do them very well. The more tasks they try to take on, the less focused on their core pursuits they become. This loss of focus can have a negative impact on customer satisfaction, causing the entire business to suffer.

Every day, businesses outsource tasks that aren’t directly related to their core business, their customers, products, and services. Tasks like accounting, logistics, maintenance, and hundreds of others are turned over to experts in those fields. Payroll processing and HR administration are no different. Turning them over to seasoned professionals guarantees better results, and allows the business to take advantage of all of the other services they provide.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Payroll Service, Payroll, payroll solution, payroll provider

Subscribe to Email Updates

Recent Posts

Posts by Topic

see all