Small business owners are more than often inexperienced when it comes to business experience. Balancing books and ensuring that one’s business stays afloat only scratches the surface of jobs that business owners have to juggle. Those who manage their payroll in-house must total employee hours perform gross-to-net calculations per employee, calculate and deposit payroll taxes, and successfully prepare and file tax returns in a timely manner–being the boss can take its toll as these financial issues below can show.
Unless a business owner has a degree in accounting, tax preparation is often an intimidating process for first-time small business owners. Small businesses are identified as the greatest source of uncollected taxes in Canada, so the Canada Revenue Agency strongly enforces tax policies for small businesses. For those unfamiliar with these policies, such as foreign employers looking to outsource labor, tax time can be the most dreaded time of the year unless your business has a payroll provider.
Meeting Legal Requirements
Businesses can rise and fall by meeting or failing to meet legal requirements. Again, those unfamiliar with the laws and practices of foreign countries can easily make a mistake that can cost the company thousands or more. Firms in the United States, for example, can easily make potentially costly mistakes managing and paying their Canadian employees by relying on erroneous practices and information that is suitable for American employees. Payroll and human resource management are entirely different depending on country: Canada has over 190 regulatory legislative requirements pertaining to payroll processing alone. These jurisdictional differences can be easily overcome by outsourcing payroll management.
What is payroll services? Payroll services are third party companies that have the capacity to not only handle employee payment, but also human resource services, employee benefits, and tax solving. Many business owners find that they save time and money by outsourcing payroll solutions, as small mistakes on payroll can turn into costly business-crippling expenses. When asked, “what is payroll services” international business owners breath a sigh of relief, as payroll solutions spare them from having to file taxes that comply with the standards set for each employee’s country.