Reasons to Hire a Payroll Processing Company

Small businesses have a lot to contend with, and in a competitive market every little bit helps. It may seem counterintuitive to hire a payroll processing company, when small business owners could potentially do the work themselves, but in the long run it will save the business both time and money, and safeguard against potential legal trouble.

It can be incredibly difficult to calculate payroll tax deductions and all the other financial minutiae of the process. Owning a small business doesn’t magically grant a degree in finances, and financial record keeping can be far from intuitive. Hiring a payroll processing company will allow the business owner to focus on managing the rest of the business, without having to worry about the complex process. The payroll processing company will take care of the record keeping and calculations, staying up to date with tax policies in order to ensure everything is done correctly.

Small businesses have been isolated as the number one source of uncollected taxes in Canada, and the Canada Revenue Agency is on the alert. Making a simple mistake with the calculations can lead to a small business accruing massive fines, potentially devastating the business. Hiring a payroll processing company takes away some of that pressure. Not only does it save time and stress, but it safeguards against the potentially significant fines. It’s almost like getting insurance for your finances: you might pay the agency for their services, but they protect you from potential costs down the line.

The potential for hiring a payroll processing company extends internationally as well. Companies that outsource work across the border can find themselves unsure of what policies apply where. This is especially prevalent for US companies that have Canadian employees: providing the correct figures and payroll deductions can be harder than it seems, and mistakes can cost the business significant sums.

Keeping financial records and calculating the correct figures can be difficult and time consuming, as well as costly. Hiring a company to take care of these worries is a decision that will ultimately save time and money.