Statutory payroll tax deductions

The 21st century has been a revolutionary one for the small business world. The introduction of the internet has made it easier for small businesses to grow through social media, SEO, and other forms of digital media. Likewise, businesses are able to manage vital company assets with ease thanks to computers, tablets, and the internet as a whole. As small businesses continue to grow however, many may find that the responsibilities of a growing small business can become time consuming and difficult. Here are some vital facts for any growing business in the modern age.

The Needs of a Growing Business

Many businesses start as a dream that sprouts into a reality through time, energy, and patience. Aside from the basics of your business, business owners need to devote time to managing payroll and benefits for employees. Although this is typically managed in-house for businesses with fewer than 50 employees, as small businesses grow the responsibilities can take up time that may be better spent on a different aspect of your business. Business owners managing payroll for small companies must total hours, perform gross-to-net calculations for each employee, calculate and deposit payroll taxes, and prepare and file tax returns accurately and in a timely manner. With all of the added stress that naturally comes with owning a business, and with the ever-looming threat of potential problems caused by a mistake on payroll, many business owners may become fearful when it comes to tax time.

Tax Issues

Aside from the other issues associated with payroll for small companies, firms can easily make a potentially costly mistake when managing and paying employees. Since small businesses have been identified as the greatest source of uncollected taxes in Canada, the Canada Revenue Agency (CRA) focuses a great deal of its efforts on enforcing payroll tax policies for small businesses — to this end the Canadian government regularly produces easy-to-use payroll deduction tables to help employers deduct the correct amount from the paycheque of each employee. Since taxation comes with a wide body of jurisdictional differences between countries, many small businesses in the United States may be hesitant to hire Canadian employees. In order to successfully expand into Canada, many companies are outsourcing their payroll for small companies by partnering with a professional payroll service.

The Benefit of a Payroll Processing Company

Not only will outsourcing payroll with a payroll processing service save your company time, energy, and money, it will also spare business owners from a great deal of stress in the long run. While business leaders are typically looking to such companies exclusively for payroll services, many will be surprised to find that many payroll providers offer employee access tools such as Web portals, automated telephone systems, and HR support. The stress of managing payroll for small companies literally turns into a single report to approve and invoice to pay. Over 85% of certified public accountants recommend that small businesses consult with professional payroll providers, as they can benefit the most from outsourcing their HR and payroll needs. For those looking to take their business to new heights while spending more time focusing on their growing business, payroll service providers could be the most effective way to take your company to the next level.