Of course you can, but don’t forget to also pay your payroll source deductions by the required deadline to not have to pay hefty penalty and interest fees, prepare your T4s at the end of the year, prepare your Records of Employment following the rules and deadlines, verify that you are paying the correct minimum wage, the right amount of overtime depending on your field of work, calculating statutory holiday pay correctly, and the list goes on.
Writing a cheque to your employee(s) is one thing but managing payroll while following all the regulations is another. Outsourcing payroll allows you, as a business owner, to have piece of mind that all requirements are being met.
When considering whether payroll can be done internally or outsourced to a third party, it is important to confirm the understanding of the following:
- Payroll basics such as minimum wage, CPP, EI and personal tax credits;
- Employment benefits and how they are treated;
- Government requirements for payroll source deduction payments and payment options;
- When and how to prepare Records of Employment;
- Staying informed of payroll changes such as minimum wage, vacation requirements, sick leave changes, and any other matter that is governed by the Employment Standards Act;
- Overtime pay requirements;
- Calculation of Statutory Holiday pay, if it applies;
- Annual changes to payroll based on federal and provincial changes;
- Use of the right software; and
- Not overpaying for payroll services whether internal or external.
If you are looking for guidance to evaluate whether your business should be outsourcing payroll, contact us at info@tandembooks.ca.
