Your small businesses can benefit from outsourcing payroll, human resource services, and employee benefits to a dedicated company, so that you can focus mainly on your core business. This is true especially during tax season when outsourcing can be a time and cost saver. It is overwhelming for business owners to manage payroll in house when you are tasked with responsibilities such as totaling hours, performing gross to net calculations for each employee, calculating and depositing payroll taxes, and preparing and filing tax returns accurately and on time.
Over 85% of certified public accountants recommend that small businesses employ the expertise of professional payroll providers.There are over 190 regulatory legislative requirements when it comes to payroll processing in Canada. When you outsource payroll, there is only one report to approve and one invoice to pay. It is a smart move in your business to outsource payroll processing and hr management.
It is well known that many U.S. firms are hesitant to consider expanding into Canada due to the jurisdictional differences between the two countries. U.S. firms can easily make potentially very costly mistakes when managing and paying their Canadian employees by inappropriately relying on erroneous practices and misinformation. There is definitely a lot more to payroll than just cutting cheques. In fact, in Canada, small businesses have been identified as the greatest source of uncollected taxes, so the CRA is focusing its efforts on enforcing payroll tax policies for small businesses.
The Canadian government regularly produces payroll deduction tables to help employers deduct the correct amount from each employee’s pay cheque. Even with this information payroll processing can be complex, risky, and expensive if you make a mistake. It can be challenging for US based companies to ensure they are in Canadian compliance when paying their Canadian staff. The best solution to this problem is to outsource payroll processing and hr management so you will not be fined or worse. A payroll processing company can also provide ongoing HR support, guidance and expertise when dealing with sensitive employment issues.
Payroll and HR management in Canada is very different than in the United States, due to very different laws and regulations. In addition to payroll services, a payroll provider can offer HR Management, ESA and OHSA compliance and government remittances. For small businesses, or those with fewer than 50 employees, you will probably benefit financially and otherwise by outsourcing HR and payroll needs. Accounting and tax preparation can be particularly tricky for small business owners since they may have little experience with financial record keeping.
Small and medium sized business owners need a payroll provider that offers employee access tools such as a Web portal and automated telephone system. If you seek to outsource payroll processing and hr management, you will save many headaches and be able to get down to the main reason you are in business.