Payroll preparation should be seamless and done perfectly because nobody would want to go through the stress and hassles of filing an incomplete and wrong data with the CRA.
There are several ways and means on how to prepare your employees’ payroll. Doing it your self is not foreign to most small businesses with the use of reliable payroll software to help them with the preparation. But between running the company and taking the time to do it on the side, it may be difficult and inconvenient to juggle both and still ensure the accuracy and flawless body of work in spite of the intricacies of preparing a payroll.
In order to take the burden and stress, some would resort to an outside support to help them keep a smooth operation of the business. If you are still undecided, consider these 7 signs that you need to outsource payroll management of your business.
Having Too Many Mistakes Making the Payroll
Any businesses know that making mistakes on your payroll is costly and complicated. This is aside from the fact that you will have to answer to both the CRA and your employees when such irregularities occur. In the event of frequent mistakes and errors in preparing the payroll, then it might be time to seriously consider seeking the help of an outside payroll service provider who will do it for you to ensure the accuracy and correctness of data.
Typically these mistakes may just seem little and immaterial but has enormous consequences as each detail should be factual and precise. The most common payroll mistakes are:
- Miscalculating taxes
- Misclassifying Employees
- No meeting CRA regulations
It’s Hard to Keep Up with the Updates
Every now and then, government will release new rules or update its existing laws, regulation and mandates regarding taxes whether for federal or provincial levels. And in this case, you have to be able to keep yourself abreast with all these changes, as otherwise, it will cause a heavy toll in making and completing your payroll. Compliance can be overwhelming especially when you and your staff are not very well versed and have other obligations in the company on top of it.
Payroll service providers will ease this burden as they are all the time up to date and knowledgeable of all the ins and outs of the tax and payroll law, hence unlikely for them not to apply these changes when preparing for the payroll.
Payroll Requires Too Much Time to Prepare
Preparing the payroll takes time as it is something that should not be rushed nor taken lightly as the errors and mistakes could be prevalent. And in order to avoid these problems, it is always advised to take the time to double check before filing to avoid bigger complications and consequences with the CRA.
As it is their job, employing a payroll service to do it for you can complete and finish it, even how complex it is, quickly and on a timely manner. This does not only save you time, but increase the productivity and efficiency of your staff having to take the huge load of preparing the payroll off their shoulders.
Need to Focus on the Business Operation
In order to be productive and maximize our time, multitasking is something we are accustomed to. This may not, however, be a good idea when preparing a payroll because it is important to devote your full attention and time as it is easy to make small mistakes with it.
The aid of a payroll service provider allows you to focus and give your full time and effort in managing your business and to your customers for a smooth and productive operation, while you can rest your mind from the payroll stress knowing it is in the capable and reliable hands of someone who will do it for you accurately and perfectly.
Increased Cost of Payroll Requirements
While it may not be much of a problem with huge companies, small businesses, however, may find it difficult and more costly to keep up with the cost of preparing all the requirements such as organizing tax documents, printing and distributing of checks, and other administrative tasks and requirements that comes with the entire payroll processing.
This is especially evident when the number of your employees is growing, wherein it will it will be more cost-effective to seek the assistance of an external payroll service provider to prepare and get everything done for you. Their services would already include reporting, remittance of all deductions at source to the CRA, and the preparation of T4s and summaries. With less stress, you will find that you will even have significant savings.
Lack of Internal Control
One reason why some businesses seek the service of an outside payroll provider is for increased control and avoids possible and potential fraud inside the company. An outsourced payroll service firm has a fair and unbiased pair of eyes and views that can provide additional layer of security and protection when dealing with employees’ details and information.
It is also easier for them to find and recognize red flags and any irregularities if there is from the figures and data given, which could already be an issue of fraud. You will have the confidence that only accurate computation and preparation will be provided upon filing to the CRA.
Needing to Upgrade the Payroll Software Constantly
Keeping your payroll software updated is essential to be able to keep track and to easily have the access to the new tax information. Outdated payroll and tax software may create an even bigger problem to businesses as it will be very difficult to apply recent changes, upgrades and updates when preparing the payroll. Hence, you are not only at risk of inconsistent and some out-of-date details but also possibilities of delays and late filing.
Some of these upgrades may be costly, time consuming and a hassle. Having a payroll service provider may eliminate these stress, inconvenience and possible penalties and fines.
How did you find this article? As much as you would want to be hands on with the whole aspect of your company and handle your employees’ payroll, it would be difficult to manage when you have too much on your plate. As much as possible, payroll preparation should be seamless and done perfectly because nobody would want to go through the stress and hassles of filing an incomplete and wrong data with the CRA.
What do you think of these tell-tale signs? Tell us your thoughts and ideas about it in the comment section below. And don’t forget to share if you find this article useful and interesting.