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
In order to be payroll compliant, you need to stay up-to-date with the changes to rules and legislations, both permanent and temporary, that affect your payroll.
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.
Whether it is regarding a change in address, a salary change or parental leave, you need to make sure it has been noted in your payroll, so that these changes are filed correctly.
When using an online payroll service, like VPM, make sure you are reminding employees to keep their accounts updated with any personal information changes, especially if it affects the payroll.
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.
At VPM, we work with established legal professionals to ensure that every aspect of our payroll service reflects the requirements outlined in Canadian payroll legislation.
Focus on your business and let us handle the ever-changing payroll landscape.
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).
Take the time to mark your calendar with important filing dates, so you don’t risk getting a fine.
VPM remits source deductions on your behalf so you don’t have to worry about paying any late penalties.
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.
If you’re interested in working with VPM for secure payroll management, contact us today!