When processing payroll in Canada, there are more that 190 regulatory legislative requirements. This can be difficult if you are a United States based company trying to pay Canadian staff members because the United States has different laws and regulations than Canada. This is why many companies are using outsourcing services.
What is an outsourcing company?
An outsourcing company provides payroll services for businesses. They send payments and do all the tax deductions on your payroll. This is extremely beneficial when your company’s employees are in different countries. The outsourcing company will know the rules and regulations for each country’s payroll and will automatically apply them for you, which will save a lot of time and effort on your part.
How will a payroll service provider benefit my company?
United States companies are prone to potentially making extremely expensive mistakes when managing and paying Canadian employees because of misinformation and incorrect practices. Payroll services providers do the work for you so that you will not have to worry about making these mistakes, and will ultimately save you time and money. In fact, about 85% of certified public accountants will recommend the employment of a payroll service company.
What additional services do payroll outsourcing companies provide?
In addition to providing payroll service, some outsourcing companies provide Human Resources management. When employment issues arise, they will provide their expertise, guidance and support. The payroll processing company will help ensure the issues are solved.
There are many United States companies that are hesitant to expand into Canada because of the large jurisdictional differences of the two countries. Using an outsource provider will help you grow and expand into Canada without the worry of payroll differences because they will do the work for you. In fact, and outsourcing company can save time and money allowing you to focus attention on your business and its growth.
