When you take the leap and decide to run a business, there are so many moving parts to manage to run successfully run your business.
Payroll is one of the most important parts.
Payroll compliance is a critical aspect of your business, however, not many business owners have the time or resources to fully understand what being payroll compliant means.
In this article, we’ll take a look at what payroll compliance is and everything you need to know about it in 2021.
What Is Payroll Compliance?
Payroll compliance is a fancy industry term that just means following the rules and regulations set by the federal and provincial/territorial legislation relating to payroll, including the:
- Canada Pension Plan Act
- Employment Insurance Act
- Income Tax Act
- Employment/labour standards
- Worker’s compensation
- Quebec-specific legislation
Payroll Compliance in 2021
Here are a few key areas to be aware of to ensure you are payroll compliant in 2021:
Ensure Accurate Employee Information
This aspect of payroll compliance may seem like we’re stating the obvious, but that is just how important it is.
Stay Up-to-date With Federal & Provincial/Territorial Legislation
You will want to keep yourself updated regarding changes to legislation that may affect your payroll.
For instance, due to COVID-19, there were a number of changes to legislation that affected employers when it came to filing their 2020 taxes.
Submit Payroll Information On Time
While your busy running your business, tax season deadlines tend to sneak up on you.
If you are not submitting your payroll information on time and missing the important filing deadlines, you can face some pretty hefty fines. In Canada, the penalty is $100 or an amount calculated according to this chart (whichever amount is greater).
VPM’s Fully Compliant Payroll Services
Payroll can be one of the most complex aspects of running a business. This is why getting support from a payroll management company, like VPM, is important in ensuring that you are staying compliant.
Our customizable payroll services are fully compliant with provincial and federal government regulations. We can handle all of your payroll needs so that you can focus on what you do best.