Payroll For Your Small Business
Posted On: 31/05/21 - 0

What You Need To Know

Your focus in your business should be all about growth and providing excellent service for customers. Even though growth is necessary for small business, payroll for your business requires a lot of attention. Employees need to be paid on time, every time.

Payroll is not a quick and simple task.  There are many steps involved. Failing to follow the rules and regulations will result in penalties. Many steps are involved in the payroll process. Some of those include collecting employee data to maintain payroll records.  There is also calculating employee overtime and the issuance of T4’s for tax season. Here’s all that you need to know.

Payroll and Your Taxes

Firstly, you should be mindful of various payroll taxes applicable to payroll management. The salary that your employee shall receive is considered ‘taxable income’. Deductions like CPP contributions, EI premiums, and income tax deductions based on your employees’ income need to be calculated according to the CRA. It is an important part of the payroll process to understand what is and isn’t taxable. Expenses, allowances, or the use of company property, such as a car, laptop, or phone can be considered taxable.

Maintaining Employee Records For Payroll

Secondly, maintaining and updating employee information ensures quicker payroll processing and compliance with CRA regulations. When processing ‘Records of Employment’, accurate information about your employees should be collected to avoid complications in the future.  It’s important to avoid penalties that occur when missing the remittance due date.  These late remittances cost your business money.

T4’s For Your Employees

Thirdly, T4’s and the processing of them is time sensitive.  You need to be informed about the payroll filing due dates. A T4 summary must be sent to the CRA along with copies of all the individual T4s. T4s are distributed to each employee because they need to claim this income on their tax return each year. T4 forms must be submitted before February 28th every year to the CRA. Filling out T4 forms can be a challenging task. This means errors are common and they will cost your business money.

Payroll Challenges

Fourthly, your payroll system needs to comply with CRA requirements. Non-compliance with the CRA will result in costly legal issues and fines.  Managing a payroll system in your business can turn out to be expensive and very time consuming. Additionally, calculating taxes accurately is essential to avoid errors that lead to penalties. Another challenge that you face is tracking absence, sick time, and hourly work time.  There is vacation pay and overtime of your employees that needs to be paid out regularly. There is the whole issue of timing.  You may avoid taking vacation time around pay periods to ensure your employees are paid.  Plus, payroll remittances need to be submitted on time with the CRA.

Small business payroll contains several steps for you to manage.  It is hard to keep track of everything when you are so busy running your business.  This could be another job that you do not have time for.  Call us and outsource your payroll.   We are reliable and efficient.  We know exactly how payroll works.   Call us and earn more about our affordable payroll for your small business. This will allow you to stay on top of your core business functions that actually grow your business.

12203-107 Avenue.
Edmonton, Alberta.
T5M 1Y9

Call us:
780.482.7297