Payroll is something that we employees take for granted, but it can be a total nightmare for businesses to figure out and do correctly, especially small businesses. It’s a necessary administrative task that has to be done — and done correctly, especially for tax purposes. Pay for federal employees, figuring out the payroll deduction calculator, and figuring out payroll rules and regulations can be a headache for businesses that have employees with different needs or who don’t outsource. However, outsourcing can actually be a very beneficial thing. Some payroll companies provide similar services to online medical record services — and in some cases, online medical record services may even be tied into the department that handles payroll! In today’s quickly moving world, it shouldn’t be necessary to have to worry about payroll on top of all the other pressing needs — outsourcing your payroll to a provider can make everyone’s life a whole lot simpler.
How Complicated Is Payroll in Canada Anyway?
In a nutshell: complicated. There are almost 200 regulatory legislative requirements for payroll processing in Canada. In part, this makes it tough for companies who are based in the United States to make sure their in line with what Canada dictates as necessary when they pay staff that works in Canada. HR management and payroll can get even more nightmarish because of the different regulations and laws that govern each country. Unsurprisingly, United States companies can find themselves paying for costly mistakes by relying on bad practices and information to manage and pay their employees who work in Canada. One way around this is to use a payroll program — similar to those that drive online medical record services — or to simply outsource payroll in general.
This might be a necessary cost for small businesses especially, since they’ve been targeted as the largest pool of uncollected taxes. The CRA has been especially focused on making sure they abide by all payroll tax policies for small business, which can be very stressful. And although the government does provide payroll deduction tables that are kept up to date, it can still be hard to know exactly how much to correctly deduct from each paycheque.
What Do Outsourced Payroll Companies Do?
As one might already know, cutting cheques is only one part of the responsibilities in payroll. Hiring an outsourced payroll company can help provide continuous HR support for the business and they can often lend guidance and expert knowledge should sensitive employment matters come up. They’ll take away the headache of adding up hours, doing gross-to-net calculations per employee, figuring out and depositing payroll taxes, and getting tax returns in on time and done correctly. By hiring a third party company, they minimize their chances of making a costly and risky mistake that could take up valuable resources and time that could have been dedicated to something else. Why risk it? The cost put in to hiring a third party company will be paid back with the help they provide.
Why Should Small Businesses Especially Look at Outsourced Payroll?
Outsourcing payroll will allow the small business itself to focus on their core business — the things that really matter to them. It will also help them out with accounting and tax prep, which can be daunting and complex for owners who probably have little experience with such detailed finance work. It’ll save them time and money during tax season especially, but also all year round. It’s even CPA recommended (over 85% say that small businesses should get the help of professional payroll providers). Furthermore, many outsourced payroll companies offer far more assistance than just payroll. Human resources management, ESA and OHSA compliance, and government remittances may all be included in their package, which can further save a small business time, energy, and money.
The best thing about turning payroll over to a third party is having only one report to give the okay to and having to pay only one invoice! Like online medical record services, online payroll solutions and a third party payroll provider could really turn a business around.
