Paying employees can be a complicated process. The myriad of forms and deadlines can confuse even the most seasoned entrepreneur. The decision of how prepare payroll should be carefully considered.
The basic options are as follows:
Prepare payroll internally
Many small businesses decide to prepare payroll in-house in order to save funds. While only you can make the best decision for your company, consider the time and energy you will spend on (a) preparing payroll each cycle, (b) filing annual forms and preparing the requisite reconciliations, and (c) staying caught up with changes in payroll legislation.
Often times, payroll can be prepared for less than $500 per month and business owners can spend as much as 20 hours per month preparing payroll. Often times it is much more efficient to spend that time on your business as the return you can generate in your business will far exceed the cost spent on payroll. One small mistake in payroll can result in thousands of dollars in interest in penalties, for example, being late with a payroll remittance results in a 20% penalty for the first offence and a 30% penalty for the second.
Ensuring payroll is prepared accurately and that CRA reporting and payments are made on time is critical. Trusting payroll to a trained professional can result in a substantial time and dollar savings to any small business.
Engage a payroll provider (i.e. ADP, PayWeb, Ceridian)
There are many company’s out there who can help you with your payroll (ADP, PayWeb, Ceridian, etc). However, it is important to note that payroll providers do not do 100% of your payroll. Business owners typically have to enter in hours and deduction amounts each pay period. Additionally, many payroll providers do not have highly trained professionals preparing your payroll. Getting answers to complicated payroll questions can be a challenge with some payroll providers as the payroll acumen can fluctuate depending on the technician assigned to your account.
Engage Kent Accounting
At Kent Accounting, we handle 99% of your payroll. All we need you to do is (a) provide us with the hours each pay period, and (b) make payments to the CRA (we will email you the details of payment amounts and the date to make the payment). With the online payment mechanism the CRA now has, you can do everything from the comfort of your office. Furthermore, as a Chartered Professional Accountant, Kent Greaves has the experience, training and knowledge necessary to answer the most complicated payroll questions.