Payroll is considered to be one of the most critical areas of your financial record keeping. This area also seems to be most commonly botched by small business owners. That's why, get professional advice on how to correctly set up and keep up your payroll system.
You have to consider using a payroll service. This will save you a lot of administrative time and obstacle. Its task is to assure your government reporting and payroll taxes are always correct and new. Thus this profit alone can be well worth the cost of the service, as late-payment penalties for payroll remittances tend to be some of the biggest and most severe penalties that the government levies.
But there are other advantages of using a payroll service. Let's consider them.
The payroll service is always up to date on the tax code. And it doesn't matter whether there will be changes in Canada Pension Plan rules, revised Employment Insurance guidelines or new tax rates.
What the payroll service also does is automatically handling the creation of accurate T4 slips for your employees at year-end.
A payroll service allows you to offer your employees direct deposit of their paycheque. Most employees appreciate this perk.
You should also be aware because such service can take all associated government remittances out of your company account each payday. This will happen even if those remittances are not actually due for another few weeks. While you will be preparing for it, this can create a cash flow problem.
As your bookkeeping partner, it will help you stay on top of your finances so you can make better, more informed business decisions.
Moreover, they also pinpoint the key numbers critical to the fulfillment of your special enterprise, and make sure you have them in hand whenever you need them.