Do You Really Need A Payroll Service? We Think You Do

Outsourcing your payroll needs will ensure the entire process is handled correctly, allowing you to focus all efforts and time on the most fundamental areas of your business. You will also get professionally done work without the need to train anyone in-house.

Running a business can be incredibly challenging, especially during these modern times when uncertainty seems to be the new normal. Businesses have had to continuously deal with pertinent issues like pandemic disruption, supply chain issues, talent shortages, increasing energy prices, and cost inflation. The ever-changing legislative and fiscal landscape also demands that payroll teams be adaptable and agile.

Even with all these challenges, as a business owner, you must ensure all staff members are paid in full and punctually. Failure to pay your employees the right amount may lead to low morale and limited productivity. Both small and large companies in Canada may reach a point where they feel overwhelmed with their payroll processes and need professional support.

Most businesses rely solely on small in-house payroll teams struggling to overcome big challenges, manage disruptions to traditional working patterns, and keep pace with regulatory changes. To future-proof your organization and ensure it grows efficiently, you need to fundamentally change your approach to HR and payroll operations. One way of achieving this and adding more value to your company is by working with a payroll service provider and using professional software. But these managed payroll services can also be provided online by some of virtual accounting firms in Canada.

Is it time to hire a payroll service? Here are signs that you should contact an outsourced payroll service company immediately.

High Employee Turnover

According to research by Nielsen, in North America alone, one in five employees change jobs annually because of payroll issues. Millions of employees leave their jobs because of inaccurate or late paychecks. Knowing, when you will get your dues is stressful for any employee, and this stress may cause mental health issues and affect employees’ productivity and physical well-being.

Late or inaccurate payment makes most employees feel helpless and abandoned by their employers. Therefore, if you are constantly training and hiring new employees, it is time to look at the efficiency of your payroll service.

Outsourced payroll services will ensure your employees are paid on time to ease their financial commitments, such as fuel costs, food, and bills, boosting their performance. If you reach a stage where employee salaries are delayed because of poor payroll processes, you should seek help immediately.

Making More Frequent Payroll Errors and Inaccuracies

One of the signs that your business needs outsourced payroll services arises when you make more mistakes than usual. Any slight mistake on the payroll can significantly cost your business in two ways. You may need to track down all the deductions needed for all employees or keep paying ghost workers, which may lead you to a loss. On the other end, you may over-deduct some employees or, at times, fail to pay all your workers, which may also impact workplace morale and productivity.

Getting payroll support from professionals will not only help to streamline your business’s payroll process but will also help you avoid any errors.

You Struggle with Tax Calculations and Compliance

Over 40% of small and midsize businesses suffer CRA (Canada Revenue Agency) penalties because of errors and inaccuracies in their tax filings. In most cases, these penalties are caused by businesses processing payroll in-house without using an automated payroll system.

Calculating payroll taxes manually is a tedious and complicated process and can easily lead to human error. There are also countless tax compliance laws that you must keep in mind to avoid additional fees and penalties from the CRA. It is time to seek outsourced payroll services if you need help with your tax accounting and compliance.

Working with a payroll services company in Canada will help you avoid the complexities of tax calculations. These companies utilize innovative technology and software to calculate your taxes correctly, file them automatically and promptly, and help you avoid any errors. Most of these companies will take on tax error liabilities, so you will not be responsible for any penalties caused by tax errors.

Payroll Costs Are Escalating Fast

Are you worried that your payroll costs will increase as each financial year goes by? This is a common feeling that most business owners have when running their in-house payroll team.

Many things can escalate your payroll processing costs, for instance, making frequent payroll errors, incurring fines from authorized regulators, and paying more for office rent, technology, stationery, and utilities than you initially thought. You may also have to pay more to cover additional staff overtime caused by long, inflexible, and manual payroll processes. All these issues will greatly impact the costs of your payroll operations.

Working with an online payroll service company will improve your cost efficiency. These companies provide the benefits of labor arbitrage and economies of scale and will minimize your payroll errors by using automated payroll software and highly trained and experienced payroll accountants.

You are Not Working as Efficiently as Required

Are you always repeating manual and long processes? You are not alone. Research shows that 65% of businesses say they complete all or some of their payroll processes manually. However, manual calculations and using error-filled spreadsheets increase the chances of payment errors and inaccuracies. In addition, manual payroll processes also take up a huge amount of valuable time that could be used to complete other more essential work that directly supports your core business objectives.

Partnering with an outsourced payroll services provider means you will benefit from unmatched operational efficiency and get enough time to focus on tasks and activities that require more attention. You will have professionals handling your payroll functions, allowing you to focus on running your business.

You are Missing Opportunities to Grow Your Business

Your organization exists to fuel your mission and goals and serve your clients and customers. Unfortunately, complexities will increase as your business grows. Increasing your employee count also comes with prioritizing their needs, well-being, and experience.

As a business owner, you must offer the right coverage, benefits, and processes to support your entire team. However, focusing your efforts entirely on these tasks may lead to missed revenue-generating and business growth opportunities.

If you find yourself engaging most of your time in managing the people’s side of your business and responsibilities retiled to them, then it is a sign that you should outsource your payroll work. Outsourced payroll services have many options to ensure you invest more time in growing your business.

Final Thoughts

Doing payroll management in-house is possible for many businesses; however, it takes lots of resources and time. Doing incorrectly and late can lead to employee unrest, creating more confusion between you and your staff, hence limiting productivity. If you are a small or growing business, you want to focus your time on the product or service you are offering instead of dealing with payroll responsibilities. The intricacies and time-consuming nature of payroll processes may lead most companies to consider outsourcing this business function.