Payroll Management For Small Businesses: Here Is What You Should Know

Category: Payroll Management

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Small businesses account for 98% of all businesses in Canada. They are distinguished from larger firms by the number of workers employed. As your small business grows, you might seek to enhance your employee count. However, most growing businesses cannot afford a human resource team.

When it comes to your payroll responsibility, it helps if you pay your staff and manage payroll deductions on your own or hire professionals for the job. The right payroll management in Scarborough will help you retain employees in your organization.

If you are a small business owner and want to deal with the payroll yourself, here is what you want to know about how to get started.

When and how to pay?

Paying your workers right on time is the key to remain compliant. Payment timeframes and amounts should be decided by keeping federal and provincial employment standards in mind.

There are government laws to ensure workers get paid fairly. Hence, it is important that your business remains up-to-date. The employment standards you want to meet are:

• Minimum wage
• Statutory holiday pay
• Vacation and termination pay
• Emergency work hours

Employee Agreements

Employee agreements help you to avoid payment conflicts down the line. While the Canada Revenue Agency does not ask for signed agreements, you may find them vital for formalizing the exact terms of a worker’s:

• Working hours

• Benefits
• Probationary period
• Job duties
• Salary or commission

Choosing the Right Payroll System 

The easiest way to pay workers is with the assistance of an online payroll system. The intricacy of your payroll process determines which payroll system will work for you. You should consider the following before choosing the right payroll system for your company:

• The total count of workers
• Hourly salary and wages
• Do you deal with contractors or commission-based employees?
• How often do you handle employee expense claims, overtime or allowances?

Accounting tools are designed for small-sized companies’ payroll processes that can calculate employee pay and payroll deductions if any.

If you do not find it feasible to use online accounting software, you might want to outsource your payroll process.

What Should You Expect from Your Payroll System?

Leveraging an automated payroll system makes sure your employee payments are made right on time. The right payroll system can assist you:

• Evaluate payroll deductions that may include Canada Pension Plan contributions, income tax deductions and Employee Insurance payments
• Produce T4s every year-end and make sure employees get them on the right time
• Meet employee termination requirements while generating and filling Records of Employments with Service Canada

To sum it up

Establishing an employee payroll process and keeping yourself up-to-date on what you should do throughout the year is an ongoing task. You might be a little overwhelmed to keep up with the challenging process of payroll. This is why it is important to outsource your payroll needs to a payroll management expert like Rami Kaai. Our full-service payroll and taxation and tax filing solutions are designed to suit your small business needs.

Thursday, April 15, 2021