Making the decision to expand your business is not one to made lightly. Doing so across borders can be even trickier and come with its own set of challenges, especially in terms of one of the core functions of business: payroll. Although the Canadian government offers up payroll deductions tables to help business owners calculate the correct deductions for employees, the differences between Canadian and U.S tax and employment law can put small businesses off from expanding into the North. Using an outsourced payroll processing firm can be the key to overcoming these obstacles and benefiting from expansion into new territories.
With close to 200 payroll processing regulatory legislative requirements, Canada’s business environment can be a potential minefield for business owners unaware of the differences. Given that payroll in itself is a complicated matter than can lead small business owners, who try to tackle it alone, astray and result in costly mistakes, the need for an outsourced payroll processing form becomes even greater. Outsourcing means you never have to worry about how to pay employees or how to figure payroll taxes. There is just one report to approve and you only have to pay one invoice.
Payroll outsourcing also offers business owners the services of knowledgeable and experienced experts who can offer advice on sensitive business and employee issues. After all, payroll is about more than just cutting cheques; a large chunk of it focuses on payroll laws and regulations. Relying on misinformation or a faulty understanding of Canadian law can be a really messy affair and cost the business dearly. In fact, the Canadian government is looking at small businesses very closely in terms of tax collection and the application of tax payroll policies, as it has identified this business segment as being the largest in terms of uncollected taxes.
If expansion is on the cards or you have already taken the plunge and are now looking for a payroll solutions provider, consider their experience of and knowledge in cross-border contexts, especially US-Canada differences. You might also want to consider outsourced payroll processing firms who can offer automated and self-service offerings such as online portal and telephonic support. Cost is obviously a concern, but expertise and experience should take precedence given the potential for even more costly errors.