Canada is an attractive destination for U.S. and international companies seeking to expand. But to set up a local Canadian branch, you need a local Canadian partner. Employee payroll and human resources are very different in Canada than in the U.S., and it can be difficult for newcomers to handle all payroll processing services on their own.
There’s much more to payroll processing than issuing checks. Partnering with Canadian business management services will ensure that your business is in compliance with all laws and regulations. Getting the right financial management services is essential for your business to survive and succeed in Canada.
Canadian payroll taxes are complicated
Employee payroll in Canada is highly complicated, specially for small businesses that may not have the necessary expertise in book-keeping. Record keeping, accounting and taxes are best left to professionals, to avoid costly mistakes.
There are more than 190 regulatory legislative requirements in regard to payroll processing in Canada. Payroll tasks include keeping track of total hours worked by each employee, gross-to-net calculations, calculating and paying payroll taxes accurately and on time. Payroll processing is a major source of concern for small business owners, as even a small and inadvertent mistake can be costly and risky.
Outsourcing employee payroll processing
Not only are payroll and tax regulations complicated, at this time small businesses in Canada are facing scrutiny. The Canadian Revenue Agency (CRA) has identified small businesses as the greatest source of uncollected taxes. At the present the, the CRA is focussed on small businesses in terms of enforcing payroll tax policies.
All this means that for small businesses wanting to operate in Canada, outsourcing payroll, HR services, and employee benefits can be the best choice for a number of reasons. There’s no need to go it alone in the jungle of tax laws.
Outsourcing payroll to a dedicated company lets your small business focus on what you do best, and leave the problems to the professionals. Specially during tax season, the benefits in terms of time and money saved will be apparent.
Get the outsourcing advantage
Small businesses are defined as those enterprises with less than 50 employees. That doesn’t
leave a lot of room for in-house human resources and payroll processing. By outsourcing payroll, you will dramatically cut down on the burden of payroll-related work. You will get the highest quality professional services, with only one report to approve and one invoice to pay.
In general, more than 85 % certified public accountants believe small businesses benefit from employing professional payroll providers.