Why Outsourcing Payroll is a Smart Solution

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For companies from the U.S. and other countries that hire Canadian workers, payroll and employment standards compliance can be confusing and difficult. There are numerous laws and regulations to keep track of, and it’s easy to make mistakes. Mistakes are penalized severely. However, companies unfamiliar with Canadian rules and regulations regarding payroll and HR can find help through payroll solutions like Canadian employer of record services and employee payroll deductions.

Meeting Canadian payroll and tax regulations
For companies looking for an educated and motivated workforce, Canada is a good choice. But hiring Canadian staff requires meeting Canadian hr and payroll regulations. These responsibilities can include seemingly-arcane record-keeping activities like keeping track of total hours, making accurate gross-to-net calculations for employees, and calculating and depositing payroll taxes.
Companies are also responsible for making sure that accurate tax returns are filed in time. To make things even more complicated, the risks of making a mistake are severe. The penalties for mistakes in payroll and taxes can be expensive and time-consuming.

Small businesses under the scanner
In any setting, payroll is a complicated matter. It’s more than just cutting cheques. There are all kinds of record keeping and calculations to be done, and it’s easy to make mistakes.

It’s easy for small business businesses to make payroll and tax mistakes. And payroll mistakes can be costly. In fact, the Canadian government has identified small businesses as the biggest source of uncollected taxes. The CRA is focusing its enforcement efforts on small businesses. That makes it all the more important to get it right.

Outsourcing payroll management
To avoid the hassles that go with learning a new and complex set of rules, small companies prefer to outsource payroll processing and hr management. Handing off the responsibilities to payroll services is a smart payroll solution.
Accounting and tax preparation is always tricky for small businesses, who may lack the necessary expertise. In a new setting, it can be completely bewildering.

Benefits of outsourced payroll solutions
By using outsourced payroll solutions, small companies can focus on their business objectives rather than getting tangled in financial paperwork. Especially during tax season, it can save them both time and money.
With outsourced payroll solutions, the paperwork miraculously disappears, and is replaced by a single report to confirm and approve, and a single invoice. As well as payroll solutions, global management services can provide other Human Resources services including ESA and OHSA compliance.

For companies in the U.S. thinking about hiring Canadian employees, the different tax codes and regulations can be challenging. With payroll solutions, these challenges become much more manageable, allowing employers to benefit from a highly educated and skilled workforce.

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