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Why timely and accurate payroll really matters to your business

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Are you a Canadian business owner? Check out our 2020 article: Calculating Payroll Tax in Canada: A guide for small businesses. 

Hiring the first employee is an exciting milestone for any business. Taking on extra help is a sure sign your hard work to build a sustainable business has paid off—and holds promise for even greater success.

One of your most important obligations when you hire employees is making sure you pay them correctly, on time, and in compliance with government regulations. The appropriate deductions must be made on each paycheque. And source deductions (Canada Pension Plan contributions, Employment Insurance premiums and income tax) must be remitted on time to the Canada Revenue Agency.

Learn why accurate payroll management is so important for your business—and how a cost-effective accounting software solution can make managing your payroll responsibilities simple and stress-free.

Reduce the risk of tax penalties

As an employer you are required by law to make accurate employee source deductions and remit the appropriate taxes to the Canadian Revenue Agency (CRA). If you aren’t in compliance with all the latest tax rules and regulations, you run the very real risk of being hit with costly tax-filing penalties—and a potential CRA investigation.

The right accounting software should help you stay on top of your employee payroll obligations by:

• Preparing accurate tax calculations for employees;

• Deducting and remitting the appropriate taxes;

• Creating custom taxable and non-taxable benefits;

• Calculating withholdings on payroll advances; and

• Generating government forms for print or online filing (like T4 Statement of Remuneration Paid slips).

Your accounting software should automatically update with the latest federal and provincial tax rules, so you can be confident you’re acting in compliance each and every pay period.

Simplified payroll processing

In the past, payroll preparation was a tedious and time-consuming procedure for small businesses. Employees often relied on inefficient manual systems to get the job done each pay cycle, including spreadsheets and printed cheques that had to be signed.
Online accounting software has revolutionized the way small businesses handle payroll, making the entire process much more accurate and efficient by automating these routine tasks.

Accounting software can help save your business time and money by taking over important payroll processes such as:

• Calculating pay at salary or hourly pay rates;
• Making any necessary deductions; and,
• Issuing payroll cheques or direct deposit payment.

Pay your staff anywhere, anytime

Most business owners and their employees would agree on the importance of being paid accurately and on time. Cloud-based accounting systems have made prompt payroll processing much simpler for business owners—especially those on a shoestring budget.

Using an online payment solution is a cost-effective way for employers to pay their employees anywhere there’s an internet connection, eliminating frustrating delays when travelling for business or taking a holiday.

With the security and convenience of a payroll-friendly online accounting system, there’s no excuse for falling behind on your obligations. A simple automated payroll solution with real time updates lets you always pay your staff on time while staying on the good side of the Canada Revenue Agency.

Next steps

• For more information on your tax obligations as an employer, read this information on the CRA website: Employer’s Guide to Payroll Deductions and Remittances