Is there a place for payroll services in your business?
First, we’ll set the scene: You’re a start-up or a smaller business with between five to 25 employees – some or all of whom work remotely in Canada.
You’re putting most of your day-to-day focus on the tactics and strategies that will grow your business. So, do you really want to deal with time-consuming, non-strategic activities like payroll?
You probably don’t – and that’s okay.
Payroll processing can be a complex task when you have remote employees in foreign countries with unique benefits and tax regulations.
Understanding and staying up to date with all the latest Canadian federal and provincial payroll deductions, taxable benefits – and more – requires a level of oversight (and expertise) that you may not have on hand.
Be that as it may, your remote Canadian employees still need to get paid, and you need to keep from running afoul of federal and provincial laws.
So, what is a worry-free way to accomplish all of this?
Enter the payroll service provider!
What can payroll services do for you?
A payroll service provider will work on your behalf to handle all payroll admin and processing, including Canada Pension Plan (CPP) and Employment Insurance (EI) contributions, tax and benefit deductions, and track employee sick leave and paid time off.
On the admin side, payroll services providers will supply year-end Canada income tax forms, like the T4 (Statement of Remuneration Paid) and T2200 (Declaration of Conditions of Employment).
A payroll services provider will understand the best ways to handle commissions and allowances, expenses and taxable benefits.
Finally - the best providers will have payroll compliance professionals (PCPs) on staff. PCPs have gone through in-depth training and certification to ensure they’re experts in all aspects of federal and provincial requirements, including payroll taxes, vacation accruals and deductions.
What PCPs ultimately provide is an extra level of confidence that your payroll will always be accurate, on-time and in-compliance - regardless of whether your remote Canadian employees are located in Taber, Alberta, Trois-Revieres, Québec or Truro, Nova Scotia.
So, do you really want to handle payroll yourself?
We get it: With a smaller team, it might seem like payroll is not enough of a burden to outsource. But keep in mind: It’s one thing to “do payroll,” but it’s something else to do it well.
Handling payroll yourself is only a good option if you have the in-house skills and expertise, and time to dedicate to it every single pay period. Any mistakes or miscalculations can cost your business in fines and penalties from non-compliance.
Plus - getting paid late, partially, or not at all takes a wrecking ball to employee trust and morale.
A good payroll services provider will accomplish all of these tasks seamlessly, with payroll right and on time, every time. This not only ensures that deductions and taxes are correctly collected and submitted, but your employees always receive their pay with zero hitches or delays.
Offload payroll and other non-strategic admin tasks
Partnering with a professional employment organization (PEO) can be a great option for businesses looking to offload more than just payroll processing.
On top of payroll, a PEO can give you access to a cost-effective (and attractive) set of benefits. They also provide retirement savings plans (RSPs) and even compliment your HR team by providing Canada-specific expertise in areas like salary benchmarking, employee onboarding and legal compliance.
If you think a PEO is the right option for you, see what else you need to know before you commit.
Bridgewater TI: Payroll services and beyond
Bridgewater Talent Integration provides a wide range of payroll & HR admin services for Canadian employees. Whether you want help on time consuming payroll and HR admin tasks or want to explore our white glove Canadian employer of record (EOR) services - we are here to help build a right-sized employment solution for your business.
Talk to us today!
The information provided is for general informational purposes only and does not constitute tax advice. Please consult with a qualified tax advisor for advice tailored to your specific situation.
