Canada is an attractive market and an appealing place for entrepreneurs with flourished businesses to invest in, work and live. According to Forbes, Canada is the one of the best countries for business with a welcoming business environment and a highly literate workforce. There are many time consuming tasks in a business that come with many complexities and one of them is payroll processing.
Payroll processing is the handling and managing of the payments of wages of employees by a company. Here are the challenges of managing in-house payroll processing in Edmonton.
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Taxation
Tax rules can be dynamic and changeable. Every province has different taxation specifics and unique employment laws. Every business has to keep and get regular updates with constantly shifting Canadian tax laws and regulations in the payroll of employees’ salaries to ensure that the tax deducted is accurate and to prevent penalties and inconvenience.
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Confidentiality
It is important for a business to protect the payroll data from leaking out of the organization. Payroll data has to be backed up for security and safety.
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Burden on Finance/ HR Team
To have a track on payroll data, it is important to have a separate payroll person to create and segregate the payroll to the employees. But many of the small and medium enterprises tend to find it expensive to keep a separate payroll person which creates a burden on HR and Finance team and it creates inefficiencies if the person does not remain updated with taxes, legal and other issues.
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Maintenance Cost of Technology
In order to have an efficient payroll system it is important for the business to implement software in order to store data and have a faster way to calculate the payroll. The business has to make sure that the maintenance and upgradations of the technology happens in reasonable fee.
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Historical and Accurate Data
Every business has to store the historical data of the payroll, which acts like record keeping. The business is responsible for adhering to territory, federal and provincial record keeping related to taxes, social contributions and insurance premiums. Records should be verifiable upon request of the regulating bodies of the country. Failing to comply with the record keeping might expose the company to a host of fines.
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Employment Considerations and Leaves
While hiring employees, every business should be mindful of the national stipulations for employees, including labor standards that prescribe employment conditions. Leaves like paid leaves, maternity leaves, paternity leaves, etc. can be mandatory and varied at provincial level.
Canada may often be the first step to expand a business to a broader international expansion and might attract many businesses around the globe. But, it is important to outsource payroll processing to specialists and professionals so that you can focus on your business.
