There are many good reasons for international and U.S. based companies to expand into Canada or to hire Canadian employees. But the human resources and tax regulations associated with payroll processing for Canadian employees can be a confusing tangle, and the penalties for mistakes can be severe. Rather than trying to sort through these on their own, many small businesses choose to partner with a Canadian payroll processing company which has the advantage of local knowledge and connections. For all local administrative needs, including payroll, human resources, and record copy services, a payroll processing company can help your business to remain in compliance with Canadian laws and regulations.
Is your business new to Canada?
The similarities can be confusing and misleading. Because of the common language and culture, many people mistakenly believe that Canada is identical with the U.S. However, the laws are very different, especially when it comes to payroll processing and HR management. With all the payroll differences between U.S. and Canada, it can be difficult for small businesses to remain in compliance when it comes to figuring out how to pay your employees.
Any mistakes can be costly, in terms of fines and penalties. This sometimes leads U.S. companies to avoid employing Canadians or to put off expanding their operations in Canada. But rather than miss out on business opportunities and hiring talented staff, U.S. and international companies can outsource payroll services, working with a local company which can also offer HR support and guidance in dealing with employment issues.
Small businesses under the scanner
The Canadian government has identified small businesses as the source of the largest amounts of unpaid taxes. As a result, CRA enforcement efforts are focused on payroll tax policies for small businesses. This means that your business practices will be receiving special scrutiny. It can be difficult for small business owners to be confident that they will pass such scrutiny, since there are more than 190 Canadian regulatory legislative requirements governing payroll processing and taxes.
The regulations cover taxes, record copy services and processing and filing tax returns. If it sounds difficult for a newcomer to master, that’s because it is. The penalties for failing to process payroll and taxes correctly can be severe. For small businesses, it makes sense to outsource your payroll services to a specialist company. They have the expertise to ensure that your business is in compliance in all aspects of processing payroll taxes, filing tax returns and record copy services.
Outsourcing payroll processing can simplify your life
Canadian taxes and payroll requirements are specially difficult for foreign businesses to figure out. But most if not all small businesses lack the needed expertise in payroll and tax regulations. These regulations require businesses to total hours and do gross-to-net calculations for each employee, calculate and deposit payroll taxes, file accurate tax returns and maintain correct records. For most small businesses, it makes sense to hire a payroll provider to help them. As well as payroll services, a payroll services company can help with HR, ensure ESA and OSHA compliance and provide record copy services.
Outsourcing payroll can dramatically simplify your life. Instead of a confusing mass of forms and regulations, you will have only one report to check and one invoice to pay. And you can be sure that your business is in compliance.