Hiring staff should be a simple process that is automated and easy. Here are suggestions on how you can handle payroll compliance.
Payroll Software and Why
As a business owner, you need as much free time as possible to focus on growth. Manually calculating payroll can be time-consuming and prone to error. At Argento CPA, we are big fans of Wagepoint – one of the leading online payroll software providers in Canada.
It is highly recommended you investigate payroll software before you hire, not after! Payroll deductions such as CPP, EI, and tax, must be deducted off each cheque and remitted to CRA. You must be certain that payroll is accurate and paid on time to CRA. Mistakes are very costly for payroll, with high interest and late payment penalties imposed by CRA. If the CRA discovers discrepancies between what you remit and what you report on a T4, the chances are your payroll account will be audited/reviewed to determine why a variance exists. This means time wasted or extra fees paid to your accountant or bookkeeper to sort it out.
There is much more to it then simply writing a cheque.
When you pay employees, there are important things to track.
- Salaries and wages
- Overtime hours
- Vacation accruals
- Holiday pay
- Tips
- Bonuses
- Commissions
- Income tax
- CPP
- EI
- Benefits
- And many other types of deductions depending on your employment contract!
Benefits of using Wagepoint
The biggest benefit is automation of course! Why would you possibly want the responsibility of tracking all these amounts separately. It is a disaster just waiting to happen. With Wagepoint, you can do the following.
- Direct deposit
- Online access to paystubs (no more paper!)
- Automate payroll tax payments to CRA
- Automatically generate ROEs
- Automatically generate T4s at year-end
For assistance setting up your automated payroll system, contact Argento CPA today and we will get you up and running.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.