Getting your employees paid on time is a major part of running a successful business. But payroll involves much more than simply cutting checks for employees. It includes a detailed knowledge of how to total hours, calculate payroll taxes, and perform gross-to-net figures for every employee. It also involves the preparation and filing of timely, accurate tax returns, among other responsibilities. Any mistake in these processes can be costly, and take hours to redo. For this reason, many companies outsource to a payroll service provider to handle this aspect of their business.
Payroll service providers have trained specialists who can either manage your employees’ accounts for you, or set you up with a online system where tax deductions, and other calculations can be performed automatically, making it easier to manage. These providers can print or directly deposit employee paychecks on time, manage accurate timekeeping records, and even send out annual tax return forms to all employees. Also, many companies hire employees from different countries, such as Canada. This requires a specific knowledge of how to pay international workers, and a payroll service provider can accurately generate the correct payments. Mistakes made paying Canadian workers can be costly if U.S. firms do not have the correct processes in place to pay their Canadian employees on their own. The regional financial differences between the two countries are what make many U.S. companies hesitant to expand into Canada.
But payroll is also about a accountability on the part of workers and employers. In Canada, this is not the case for small businesses. The Canada Revenue Agency is focusing its efforts on trying to get small businesses, the largest source of uncollected taxes, to implement stricter payroll tax policies. American businesses face more stringent tax laws, and an efficient payroll process guarantees that both the employee and the employer are working together to make this possible. By investing in quality payroll solutions, you will be able to keep your employees happy. This can increase productivity, and results in positive growth for your company.