If you’re starting out as a new small business owner, it can be incredibly overwhelming! There‘s so much more than just customer service and inventory. You suddenly have to deal with tax forms, hiring and firing employees, and perhaps the hardest: payroll. You’ll find out there’s more aspects to it than just cutting cheques. In Canada, there are almost 200 legislative requirements that regulate payroll processing. That’s crazy! So what do you do? One great option is to outsource to payroll providers or payroll companies, who do this for a living. It can cost as little as $75 a month for a small business to use payroll services.
Well What’s Involved In Payroll?
Although the Canadian government releases updated payroll deduction tables regularly to help employers figure out how much is owed in taxes and other federal fees per paycheque, it can still be a bewildering process for a small business owner who is suddenly facing payroll laws and regulations they’ve never even heard of before.
You have to deal with tallying hours up, calculating gross-to-net numbers for each person you employ, figuring out taxes and depositing them, and handling all steps of the tax return forms accurately and turning them in on time. Presumably, you also have other responsibilities that need to be met, and dealing with payroll on its own can feel like a full time job! Additionally, it can be risky to take on payroll yourself without much experience, since it can be costly and difficult if something goes wrong. This is why over 85% of CPAs (certified public accountants) suggest that small businesses hire payroll providers who know what they’re doing and can get things done the right way.
What Are the Advantages of Hiring Payroll Providers?
Payroll providers do it all. They save you time and money and keep you from making potentially expensive mistakes of your own, especially when it comes to taxes. If you’re concerned that the cost isn’t justified, experts say that for businesses with less than 50 employees, outsourcing payroll services will actually be more beneficial financially!
In some cases, you can even get human resources management and other federal government compliances and remittances with your payroll providers. Adding HR management to your company can greatly benefit you and reduce time and resources with finding new full-or part-time employees. They’re also fully equipped to offer guidance and their expertise if you run into a sticky employment situation.
Make sure you choose a payroll service that lets your employees access their paycheque stubs and other related forms for tax purposes and convenience. If the service has a Web portal that they can securely log into or an automated telephone service that they can call with questions, that takes the pressure off you to distribute such forms or handle payroll-related issues.
Remember, when you let another company handle your payroll, you only have to look at one report and pay one invoice. It really can be that easy! Get a free quote from a payroll service today — look online or contact other local businesses in your area for recommendations.