6 Advantages of Hiring a Payroll Service Company
Outsourcing and hiring a payroll service provider has several benefits that could help you in the smooth and productive operation of your business.
Are you having some trouble and difficulty preparing your payroll? Is the pressure of making sure it is perfect and filed on time taking a toll on you? Outsourcing and hiring a payroll service provider has several benefits that could help you in the smooth and productive operation of your business. Aside from reduction of cost of personnel, time and resources, leaving the preparation of your payroll to capable and efficient hands eliminate the hassles and lessen the stress of running and overseeing the entire operations. Other than that, here are the 6 advantages of hiring a payroll service company in your business.
Convenience of Service
Though these payroll service providers work outside the business, keeping them at your arm’s length for any possible changes, additional information, data, and details regarding your employee’s payroll can be done conveniently and easily. They can be at your beck and call when you need them, to make sure that everything is communicated and processed perfectly and no details are missed out.
They can make things easier for you as well as some of these payroll service firms can allow you to update your employees’ records through their website and they’ll be able to check and process it on their end in a breeze without fail. This gives you both the efficiency and optimal savings of your valuable time to be able to do other productive tasks.
Accuracy of Details
Payroll Service Companies knows and realizes the importance and gravity of making sure that details are exact and accurate. They understand the prevailing consequences if wrong and insufficient information and data are filed with CRA. Hence, you will be assured as an employer that they will do a perfect job in order for you to keep your business and for them to keep you as their client.
There are varying fines and penalties stipulated if for example you fail to deduct the CCP contributions, EI premiums or income tax from the employees, failure to obtain employees’ social insurance number or Record of Employment (ROE), and late remittance, among other things. And so someone should supervise and ensure that these things are taken care of.
You can also be certain that they are updated and on their toes for all the changes and new guidelines and mandates from the CRA regarding tax deductions, payroll, requirements and computations and deadlines.
Precision of Computing Tax Income
One of the common fundamental mistakes that businesses make when preparing their payroll is miscalculating the tax income. Employers are known to provide their employees several benefits and allowances aside from their basic salary. It could be anything from mobile phone, housing, meals, and company vehicle or transportation. Some of these items and depending to certain conditions are considered to be taxable benefits.
As you prepare the employees’ payroll, it is important to identify which ones are considered as such and how to compute the taxes from it. Failure to report the income corresponds to severe non-compliance penalties from the CRA.
Payroll service companies ensure and provide you the guarantee that such penalties will not occur as they also take some responsibilities for the possible fines and consequences for any discrepancies. Having to deal these things one by one substantiate the reason why outsourcing a payroll service is a better choice.
Performs Multiple functions
Aside from doing and preparing the payroll, these outside firms also offer other services such as access to web portals, automated telephone systems, and other software assistance that will make the employee pay and benefits easy and convenient. For small businesses that do not have HR staff or department, they can provide support as well.
Moreover, they can also provide some information to your employees regarding health and safety programs and guidelines. At the same time, these HR and payroll service providers can offer support in handling issues relating to human resources complaints that have legal complications and concerns. They can deliver for you the disciplinary misconducts, lay-offs and terminations to make sure that your company adheres to the region’s employment law. This includes handling the workers’ compensation requests and helping you with your taxes to prepare and keep you from costly and time-consuming audits as well.
Ensure Compliance with All the Legal Issues
Part of the preparation of your employees’ payroll is compliance to the federal and provincial legal obligations, which can be pretty complicated and time and effort consuming. By doing the payroll on your own, you will therefore have to do the necessary process and complete the requirements in conforming to the required standard rules.
By identifying if your business falls under a federally regulated industry, you will need to comply with the federal employment standards. These employment standards are made by the federal and provincial governments to ensure fairness for all employees including:
- Minimum wage
- Annual vacations and other types of leave
- Public holidays
- Hours of work, which includes the standard hours, overtime pay and emergency requirements
While some industries have to follow federal regulations, some, however, have to comply with the provincial employment standards. If employees are unionized, there may be additional standards and conditions set in agreement that go above and beyond what is required by the law.
Hiring an outsource payroll service provider will get these things settled and complete for you so you don’t need to go through all the hassles. With their knowledge and understanding about the legalities and expertise in doing the payroll, what could possibly go wrong?
Improve Employee Productivity and Performance
Hiring an external firm to do the payroll allows you and your staff to increase efficiency by focusing all your time and effort doing other important duties and income-generating tasks. It has been established that payroll is one task that is very time-consuming, and should be done with utmost ease and precision to avoid making any mistakes. Hence, this one job off the load can be equivalent to several tasks to complete that needs your expertise and mastery.
Aside from that, you will be freed of the stress and headache of constantly thinking that all data is correct before forwarding it to the CRA. In this way, you can give your 100% attention in running and managing the entire company with ease and confidence
What do you think of this list of advantages when opting to hire an external payroll service provider? It will give you the peace of mind knowing that there are qualified and reliable people who will do the payroll for you efficiently. It will save you the time and money hiring a full-time payroll specialist staff on your business who will be preparing it, as payroll should be done separately to ensure precision and accuracy. That plus the time, effort, resources and the stress that will be saved, must you decide to outsourced.
Tell us what you think. Have you been considering hiring a payroll service company to prepare your payroll too? Leave your thoughts and comment below. And please share if you like and find this article useful and interesting.