Sooner or later, many entrepreneurs reach a point where the effort and energy they put into managing payroll becomes a source of aggravation, taking them away from other critical business activities. This is why many “solopreneurs” and small businesses choose to outsource and automate payroll so they can focus on doing what they love to do.
Whether you’re on your own or running any size of company, here’s why it may be time to outsource the job to full-time, dedicated experts:
It’s never been easier to automate payroll
Technology has made it simple to set up and easy to operate a payroll-management system. Whether you’re operating a one-person business or you employ several people, there’s a payroll solution that can be tailored and priced to meet your needs.
Your staff deserves it
The last thing you want is a mistake that results in your employees not getting paid on time or finding out they owe additional taxes owing to a miscalculation. By outsourcing to a payroll provider, you ensure everyone on your payroll gets paid on time with a direct deposit to their bank account, and that the right amount of provincial and federal taxes have been deducted.
Long-term financial protection
Honest mistakes happen. When it comes to payroll, the consequences of a small error can increase over time and result in the company or your employees having to make up for underpaid taxes. Using a professional payroll provider reduces the risk of error and outsources the liability to a third party.
Get dedicated help – for free
Most payroll management companies will provide you with an implementation specialist who will set up your account, coach you on how to use the system, and answer any questions from you and your staff. After that, you’ll typically be assigned a dedicated, no-cost, customer service representative who will know the ins and outs of your business and help you make changes to your payroll or tackle unexpected issues.
Hassle-free record-keeping
Everything you and your workers need for year-end tax planning is instantly available. They won’t have to ask you for things like pay stubs and T4 slips because it’s all securely stored and available online at any time.
Payroll software keeps you up to date
You have enough to do without having to worry about keeping up with legislative changes to payroll rules and remitting forms to the Canada Revenue Agency on time, every time. Automated payroll services ensure that your calculations are accurate, your employees are paying the right amount of tax, and the CRA is getting what it needs.
Easily add incentives for your employees
As your business grows and you look for new ways to attract and keep top talent, you may add incentives like group savings and insurance plans. Once you choose a benefits provider, they can work directly with your payroll service to set up automatic deductions and generate the right kind of tax forms. Here are more great tips for retaining talent.
Is this the time for you to outsource payroll?
Here are some questions to ask yourself about your payroll needs. If you answer ‘yes’ to any of these, it may be time to consider automating your payroll so you can focus on broader business decisions.
- I don’t mind doing payroll but my time could be better spent doing something else.
- I’m no longer confident that I can keep up with changing tax and employment rules.
- I worry about mistakes that could come back to bite me in the future.
- I like the idea of having a dedicated rep who will answer questions from me and my team.
- I have plans to implement more employee incentives such as group plans.
Your Meridian representative, along with our partners at Payworks, can answer your questions about outsourcing payroll and whether or not the decision is right for you. Learn more about the advantages of switching to an automated payroll system.
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