There is no doubt that when you were dreaming of running your own small business, payroll processing was not on your mind. However, if payroll is a major drag, you can call leave it up to an expert. Here are the advantages of using a payroll management service.
It takes more than a snap of your fingers to compensate your employees for their efforts. Payroll preparation involves several time-consuming and repetitive steps; recording working hours, calculating net wages, depositing pays, issuing pay slips, updating vacation banks and transferring source deductions.
Entrusting these administrative tasks to professionals frees up your schedule and allows you to focus on the growth of your business. Rather than waste time managing EI contributions, you can concentrate on the more exciting and profitable tasks that help improve your service offer and retain your customers and employees.
In Canada, there are over 200 legislative payroll requirements. Employers must collect tons of data, prepare numerous returns and deduct sums at precise and changing rates on behalf of government bodies—failing to do so would result in significant financial penalties.
For entrepreneurs, these obligations require the knowledge or the recruitment of qualified personnel and involve several days of work. According to the Canadian Payroll Association (CPA), the cost of compliance activities, for all Canadian organizations, amounts to more than $12 billion. The CPA advocates for the “complex and disorganized” rules relating to payroll management to be relaxed.
Payroll service providers help you meet regulatory requirements, saving you time and money. They provide user-friendly and secure applications that allow you to collect your employees’ personal and salary data in one place, on the cloud. This way, the data is only a click away when it is time to send it to the Canada Revenue Agency (CRA).
If necessary, payroll providers can also generate employment records for your employees and provide informative guides and reports to facilitate your declarations; in fact, at the end of the fiscal year, they will even produce your T4 tax slips and federal summary on your behalf.
If stressful legislative payroll changes are giving you a headache, you can get support from specialists who stay up to date on these changes. For example, since the beginning of the pandemic, Canadian payroll management companies have offered webinars, training and documentation to support entrepreneurs in their grant applications, and help them understand the new tax rules. Would being able to ask questions to experts during the pandemic have made your job easier?
According to a study published by Human Resources Director, a digital media outlet devoted to workforce management, 52% of Ontario workers consider leaving their jobs. Throughout the entire country, the workforce is more mobile than ever. Financial security is no longer the top priority. Job seekers are in search of career and wellness opportunities. To attract, mobilize and retain them, you need to provide an exceptional employee experience, which begins with accurate on-time paychecks.
Putting your payroll in the hands of experts increases your retention efforts by reducing the risk of errors that are a source of discontent and financial stress. According to a 2019 study by the CPA, 43% of Canadians live paycheck to paycheck, without enough savings to pay their bills.
Another important factor is that all payroll service providers market mobile, user-friendly self-service applications that your employees can use to view their pay stubs and tax slips easily, anywhere, anytime. Some more advanced functionalities allow them to view their schedules, exchange work shifts or submit time off requests. This is yet another way to increase their satisfaction.
The active payroll service providers are empowering businesses with all-in-one cloud solutions that simplify payroll and the management of work hours, schedules, employee records, training, salary scales, performance reviews, group insurance, and much more.
These platforms drive performance and growth for business people, who are able to better isolate increasingly precise and crucial data, such as labour costs, to make more strategic decisions.
COVID-19 has shown us that it is urgent for Canadian SMEs to take on a digital shift; opting for an online payroll services is a great way to start.
Some advice from Nethris
Founded 45 years ago, Nethris is a Canadian company that provides payroll services to over 17,000 SMEs across the country. We take care of your payroll from A to Z, from calculating salaries to the issuing tax slips. Our easy-to-use, affordable and secure cloud solutions also simplify time, human resource, and group benefits management.
Click here for more information or speak with one of our experts now, at 1-888-650-6291.