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Miscalculations, late remittances, and CRA penalties...oh my!: Reasons to outsource your payroll - Part 2

In the last blog post, we covered at what point do the size and how busy an organization becomes are factors of when to consider outsourcing payroll.  What are some other factors to consider and other benefits of outsourcing payroll? 

When organizations grow and have even more responsibilities, staff can feel overwhelmed with having to continue processing payroll along with their other tasks.  When tasks, such as processing payroll, are rushed or not allotted the proper time to complete, errors are more likely to occur.  Slight miscalculations can mean staff receive inaccurate pay and/or incorrect amounts are remitted to the CRA.  New or existing benefits may not be taxed properly or EI and CPP may not be properly applied.  And then there are the deadlines for remittances!

The CRA assesses penalties when an organization either remits source deductions late or not at all. More specifically, the penalties are:

  • 3% if the amount is 1 – 3 days late
  • 5% if it is 4 – 5 days late
  • 7% if it is 6 – 7 days late
  • 10% if it is more than 7 days late, or if no amount is remitted at all

These charges can add up with each day the remittances are late. 

My organization has operations across Canada.  How do I stay on top of legislation and minimum wage changes?

When researching payroll providers, it’s a good idea to make certain the provider helps with regulatory compliance issues. Provincial labour laws and minimum wage rates change on an ongoing basis.  The payroll provider you select should be keeping current on all provincial and territorial labour legislation and wage changes so you don’t have to, so you can focus on the important tasks of running your organization. 

Save yourself the stress and let a payroll provider help you remit accurately and on time, and be responsible for keeping on top of all payroll-related legislation changes.  

More to come

Check back next week for more tips and reasons to consider outsourcing your payroll in upcoming posts.

Author:
Tracy Bowman
Contact Blue Canvas.  We're here to help!
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