Among the top problems faced by small business owners are payroll processing services, which can be complex, risky, and expensive if a mistake is made. Most of the time, businesses rely on payroll providers, as they specialize in professional payroll solutions and can almost guarantee no mistakes will be made.
Over 85 percent of CPAs actually recommend that small businesses employ the expertise of professional payroll providers. In addition to payroll services, payroll providers can also offer human resource management, ESA and OSha compliance, and even government remittances.
Importantly, payroll in the United States and payroll in Canada are different; American firms can easily make potentially very costly mistakes managing and paying their Canadian employees by inappropriately relying on erroneous practices and misinformation. With that said, in Canada, small businesses have been identified as the greatest source of uncollected taxes, so the CRA often focuses its efforts on enforcing payroll tax policies for small businesses.
At the end of the day, it is much wiser for a business to rely on professional payroll providers rather than trying to handle payroll solutions themselves. Providing one’s own payroll solutions can cause all sorts of problems, and the risks outweigh the benefits.