Canada has a highly skilled and educated workforce, which makes it an attractive place for U.S. and international companies to do business. The catch is that Canadian rules and regulations regarding payroll, taxes and human resources are so complicated and stringent, that it can be challenging to remain in compliance. Payroll services providers who are familiar with these regulations can help small businesses negotiate the maze to reach their goal of finding a qualified workforce.
Canadian employees of U.S. and international companies
Foreign companies may hire staff in Canada for a number of reasons. Especially for IT jobs, Canada has a large and well qualified workforce. Or a U.S. company may have sales representatives in Canada. There are many positives to hiring Canadian workers, but the tax regulations are not among them.
In fact, they’re so complicated that they’re best left to the professionals, such as global management services that offer complete payroll services and other human resources services.
Complex payroll tasks require specialized knowledge
Payroll tasks as are not a simple matter of writing a cheque for services rendered. They require complex record keeping and calculations, including tallying hours worked, gross-to-net calculations, depositing the accurate amount of payroll taxes, as well as preparing and submitting properly completed tax returns.
If that sounds daunting for a small business, that’s because it is. Mistakes are penalized severely, and penalties can be costly and time-consuming. Many companies find that the best way to meet these regulations is to outsource payroll processing and hr management.
How payroll services providers can help
Luckily for those companies hoping to hire Canadian workers, payroll services providers can take over all of these burdensome tasks. They can also handle other human resources and tax related matters, and cut through the paperwork for you.
Instead of drowning in a sea of paperwork, you have to look at only one report, and pay just one invoice for complete payroll, tax and human resources services. It’s the best way to simplify your paperwork and remain in compliance with all rules and regulations.
Complete payroll services for small businesses
Payroll and accounting are always a problem for small businesses, since they can’t afford to hire a full-time specialist. And other staff are too busy with their own tasks, and lack the knowledge to do the financial paperwork correctly, without making mistakes.
This is why most small businesses regularly outsource payroll and taxes, finding that it saves them both time and money. In fact, the vast majority, or over 85%, of certified public accountants advise small businesses to use payroll services providers.
Many U.S. and international companies that would like to hire Canadian employees for various reasons hesitate to do so because of the complex rules and regulations. Hiring a payroll service company allows them to benefit from the skills of Canada’s workforce while remaining compliant.