For any business to successfully thrive in Canada, they need to be well-versed with the legalities and the compliance regulations in their province. Most international organizations set up their office in Canada as a crucial step towards global expansion. But, maintaining a fully compliant and accurate payroll system could be a challenge to these companies as the payroll laws keep changing from time to time. This holds true for local Canadian businesses as well. This is why many companies consider outsourcing their payroll services to a reliable accounting firm. For those of you who are contemplating handling payroll processing in-house, here are a few things you need to know.
Challenges in handling payroll in-house
As mentioned above, payroll processing requires adherence to a certain set of compliance regulations. Organizations will have to constantly monitor changes in the payroll system to comply with the country’s laws and other employee-related requirements. This can involve a considerable amount of time and money. To add to that, the payroll process needs to be built in such a way that it complies with the company standards as well. When you take external help for your payroll service, you do not have to bother with getting the entire payroll process right and focus on other aspects of your business.
Another critical challenge of payroll processing in-house is maintaining accuracy. Payroll involves the details of so many employees and their payment amounts. Maintaining the accuracy of all this data can be tedious. Additionally, you will have to update the data on a weekly or monthly basis. The job also requires you to incorporate finer details like promotions, hikes, and maternity pays into the payroll system.
Adding to the burdens of the finance team
Most small businesses do not have a separate department to take care of the payroll processing. They mostly give the responsibility to the HR or someone in the administration. These people may or may not be specialists in their job and this may result in inefficiencies. Moreover, they will end up doing most of the work manually.
A better approach to this would be outsourcing as the work will be taken care of by specialists in the field, and they will make use of automated systems to get the job done.
Why is outsourcing your payroll processing is beneficial for you?
When you take payroll services from an external agency, you can be assured that all the Canada Revenue Agency (CRA) Regulations will be followed. You will also be saving a lot of time as payroll processing is a very time-consuming process. This saved time can then be utilized for other critical tasks that can help you increase your overall income. Other benefits of outsourcing payroll processing include reduced payroll costs, lesser chances of errors, and guidance from expert accounting professionals.
So, if you feel outsourcing your payroll processing is the best choice for you, then reach out to us at the earliest.