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My organization is not big enough to outsource payroll. I’ll wait till we’ve grown.
We often hear this from small to medium-sized businesses across Canada who are processing payroll themselves, which may include manually calculating employees’ hours worked and vacation time, the use of Excel spreadsheets, writing cheques and mailing paystubs. Often small business accounting software packages include processing payroll, and especially when the organization is small, it may not take much time. Some organizations just assume that if they are small that they can and should take of payroll themselves, along with all the many other tasks they must do every day. In reality, whether you are an organization of 1 or 1,000+, you are able to outsource payroll.
I’m too busy to continue processing payroll internally – I need help!
As the organization grows, diversifies, hires more staff, and inevitably becomes busier running the business, payroll can start to become overwhelming. T4 season and year end are dreaded, and having to create ROEs for employees who have resigned or left the organization can be a pain. Those who process payroll in an organization are often wearing many hats, which may include the owner or manager of the organization. While all of these things can be challenging when payroll is running well, what happens if payroll is not going well, employees start complaining about inaccuracies on their paycheques, or payroll processing staff have filed the remittances to government late or not at all?
Side effects of continuing to process payroll internally as an organization grows and becomes busier often include an out-of-date payroll system, and the unmanageable task of staying on top of the latest legislative, regulatory, income tax rate, or minimum wage changes (especially if your organization operates in more than one province, as minimum wage is provincially legislated and can change frequently).
Does this sound like your organization? It doesn’t have to be this way.
You’re an expert in your business; consider outsourcing payroll to an expert
You know your business and the industry in which you operate better than anyone. You are focussed on growing smartly and efficiently, and keeping good employees happy. Why would you continue to process payroll internally if you don’t have to?
What are the benefits of outsourcing payroll?
Guaranteed, outsourcing payroll will result in efficiencies such as direct deposits rather than paystub delivery, and give you the confidence that your staff are getting paid each pay period. No more late or missed remittances to government. While you no longer have to worry about the processing, you still can have complete access to your data and process customized reporting whenever you want. Giving up the task of processing payroll in-house will eliminate stress and free up the time for staff to pursue more important, value-added, and revenue-generating activities that support your organization’s goals.
You may think the actual act of processing payroll is not that time consuming, but all the preparation from beginning to end occupies a lot of thought for those involved to make sure payroll is done right and on time.
More to come
Check back next week for more tips and reasons to consider outsourcing your payroll in upcoming posts.