Business owners have a lot of tasks on their plate, including payroll unless they choose to outsource. Payroll includes keeping track of total hours worked by staff members. Khaki lesions must then be performed on gross to net payment based on taxes and other withholdings, including for retirement plans. Canadian payroll services operate under different employee payroll standards than the United States, meaning it is often a challenge for an American company to remain in compliance when paying Canadian employees. Small businesses in Canada have been identified as a major source of uncollected tax revenue for the government. This is why the CRA has begun focusing energy on enforcing payroll tax policies that are in place for small businesses.
A payroll processing service can help with compliance issues. Most payroll processing services in both the United States and Canada exist as a business solution for small companies. Understanding payroll deductions in Canada will require experience within their tax and compensation structure. Health care is a major difference. Canada has a health care program that is universal, something the United States lacks. Most companies that have employees opt in to their health care plans in America are afforded a group rate, meaning employers are responsible for managing income withholdings to pay for that health care program.
This is not the case in Canada. Taxes are also structured differently according to income for Canadian companies. A professional payroll service offers human resources support that can offer relief for business owners. Small business owners that outsourced to a payroll service are more likely to catch fraud issues and lower the risk of being audited based on suspicious income reports or quarterly statements. Similarly, a professional payroll service will assist small business owners with ensuring that they are not in violation, which is important during the Canadian crack down on untaxed small businesses.
To find a payroll service that is appropriate for your business, start with online research. You will want to locate a payroll professional or team of professionals that understand your industry. Most product based companies are responsible for sales and use taxes, while service based companies have entirely different value calculations. You can also rely on web reviews from other clients of a given payroll service to determine whether or not they will be a good fit for your company. Be sure to set up a consultation and bring the necessary financial documents required to get started.