How to reduce payroll headaches

How to reduce payroll headaches
If paying employees meant nothing more than writing cheques
and handing them out on time, more employers would do it
themselves. But as most owners are realizing the do-it-yourself
approach to payroll doesn’t pay, because there’s also the
recordkeeping, calculation and payment of specific taxes, and
management of year-end paperwork for the company and its
employees. Make a mistake and you could end up on the wrong
side of Canada Revenue Agency, facing penalties and even
interest on money owed.
Not only that, but one study shows it’s actually more expensive to
do it yourself than hand it off to the experts. According to the ADP
Price of Payroll study, outsourcing saves nearly a third of the time
it takes to manage payroll processes, working out to the equivalent
of saving $939 per year for many small businesses.
“...outsourcing saves..the
equivalent of...$939 per year
for many small businesses.”
“In most cases, it costs less than the price of a cup of coffee for each employee paycheque handled
by ADP. But the real value to most entrepreneurs is the time they save,” says Rod Dobson, President
of ADP Canada. “If you’re big enough to have an employee, you’re big enough to outsource.”
Payroll companies like ADP are experts at calculating payroll taxes and track regulation changes
closely, ensuring that employment tax reports and end-of-year paperwork are submitted correctly
and on time.
Could your business benefit from outsourcing its payroll? Here are some considerations:
Accounting: Is someone at your business up-to-date with the latest best practices in areas
such as cost accounting, payroll and year-end tax planning?
The law: Are you familiar with the Canadian Bill 198 and/or US-based Sarbanes-Oxley Act and
how they could affect you and your own internal controls?
Security: are your computer systems and facilities for internal company and employee data
secure? Do you have technical support staff in place to implement safeguards and protect
your information?
Growth: Is there a possibility that you may one day sell your company or offer shares to
investors? That won’t happen if your business isn’t compliant.
To find out more about how outsourcing can benefit your business, please visit www.adp.ca
When your people are counting on you, count on us is a service mark of ADP Canada Co.
ADP is a registered trademark of ADP Inc.