One of your major administrative headaches when you own a small business that has employees is payroll processing. Not only is the task time-consuming, complex and cumbersome, but it can be both risky and costly if you make an error.
That’s why so many companies outsource payroll services to specialists – often along with their employee benefits programs and human resource functions. It frees management from having to keep track of ever-changing laws and procedures and allows them to put their focus where it belongs: on running the business. And, it eliminates the need to hire someone just to deal with those specific issues.
As you may already know from experience, there’s a great deal more to payroll management than just issuing paychecks. You have to add up the hours worked, take out personal deductions specific to individual employees, calculate and deposit payroll tax, and make sure all returns are accurate and filed on time. And accounting and taxes can be particularly difficult when you’re not trained in keeping proper financial records.
Contrast all that to contracting with an outside firm to handle your payroll services. It couldn’t be more simple. You see and approve a single report and pay one invoice. That’s it.
As a rule of thumb, if you have fewer than fifty employees, it’s to your advantage financially and otherwise to outsource business management services such as payroll, benefits management and human resources. In fact, over 85% of certified public accountants recommend that you do so.
Canada and the United States are very different in terms of payroll and human resource management procedures and regulations. Businesses need to be familiar with the more than 190 Canadian regulations pertaining to payroll processing alone. That’s why outsourced payroll service is crucial for U.S. companies trying to expand into Canada. Jurisdiction differences can be daunting, and many business may be hesitant to make the move for that reason alone. It’s all too easy for them to make expensive mistakes by using incorrect methods and relying on misinformation.
Sensible payroll solutions for small business are readily available. And the savings are obvious, when you consider the man-hours you’re spending week in and week out trying to handle everything yourself – time that could be devoted to far more productive activities.
Consult with a payroll service company to learn the facts about the outsourcing program that best meets your needs. It’s simple, cost-effective and a very smart decision.