Running a business is a massive job, so massive that many employers assume that just paying their employees will be the least of their worries.
They’re wrong, of course. Payroll rules and regulations can be a minefield for a multitasking business executive. Remember, business owners who do their own payroll have to total hours, perform gross-to-net calculations and deposit payroll taxes for every employee. They also have to prepare and file tax returns in a timely and accurate manner.
Making a mistake on any of these calculations can result in expensive and time-consuming headaches for the employee and the employer. An employee may be forced to return funds to their employer, resulting in financial difficulty, or an employer may accidentally double-pay an employee without realizing it.
Accounting and taxes may be especially difficult for small-business owners who don’t have experience in complex financial record keeping. Making mistakes in the books can be costly, and you may not have the manpower to deal with the fallout.
This is where payroll outsourcing providers come in. Payroll processing companies can deal with the complex details of paying your employees, giving you time to actually run your business. Payroll outsourcing can also include HR services and benefits under one roof, simplifying employment for you and your workers.
Payroll outsourcing can save businesses time and money, especially when tax season rolls around. The Canadian government does produce payroll deduction tables regularly so employers can deduct the correct amount from each employees paycheque, but that still requires you to go through each employee’s paycheque yourself. Rather than dealing with complex math and paperwork for each and every employee, payroll outsourcing only requires one report to approve and one invoice to pay, and the rest is taken care of.
Outsourcing payroll is a great way to give yourself time to focus your attention on more important things, like building your business!