One of the common challenges many small businesses in Canada face is handling payroll services. Payroll is a critical part of every business, whether it employ five people or five thousand. Canada has strict payroll laws in place: 190 to be exact. That inevitably causes headaches for many a small business owner who may know next to nothing about proper payroll procedures. Payroll processors must calculate payroll taxes, provide detailed invoices, keep intricate records, and contact various employees and tax officials. In short, payroll processing can amount to more work than…well, the business itself!
That is why outsourced payroll companies are so useful for small businesses. These companies specialize in handling payroll and human resources duties. Business owners with minimal, if any, experience with payroll tasks are often at a loss on how to handle them. Unfortunately, one careless mistake can spell out big trouble for the company. Professional payroll companies can take care of all of that, leaving business owners and employees more time and resources to focus on their core projects and goals.
It is estimated that more than 85% of certified public accountants recommend that small businesses — that is, businesses with 50 employees or less — hire outsourced payroll providers. Payroll providers nowadays have many tools at their disposal, including tools and programs that make it easy for businesses to communicate with them, such as automated telephone systems. Recently, online payroll providers make handling and accessing payroll as easy as logging onto a website. The days of paper are gone. Now, online payroll solutions make outsourcing payroll all the more convenient and fast.
When a business outsources its payroll needs, the paperwork goes down considerably. Oftentimes, payroll companies provide a simple, short report to approve and require a simple, short invoice for payment. It is that simple. Contract payroll services make small businesses thrive. Especially in Canada, where the regulations of payroll procedures and taxes can infuriate even the most seasoned accountant, leaving payroll to someone else is a prudent decision made by thousands throughout the country. Small business owners couldn’t be more pleased with the results.
To calculate payroll taxes alone causes considerable stress and requires a comprehensive attention to detail. To calculate payroll taxes, one must provide a plethora of paperwork — invoices, forms, receipts, etc. — to satisfy basic requirements. For this reason and so much more, payroll companies are the way to go for the Canadian small business.