How to reduce payroll headaches Saint John NB

Because payroll can cause a financial headache, it is important to be aware of where your money goes. Here are a few things business owners can do to have better money management and less payroll problems.

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How to reduce payroll headaches

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(NC)-If paying employees meant nothing more than writing cheques and handing them out on time, more employers would do it themselves. But as most owners are realizing the do-it-yourself approach to payroll doesn't pay, because there's also the recordkeeping, calculation and payment of specific taxes, and management of year-end paperwork for the company and its employees. Make a mistake and you could end up on the wrong side of Canada Revenue Agency, facing penalties and even interest on money owed.

Not only that, but one study shows it's actually more expensive to do it yourself than hand it off to the experts. According to the ADP Price of Payroll study, outsourcing saves nearly a third of the time it takes to manage payroll processes, working out to the equivalent of saving $939 per year for many small businesses.

"In most cases, it costs less than the price of a cup of coffee for each employee paycheque handled by ADP. But the real value to most entrepreneurs is the time they save," says Rod Dobson, President of ADP Canada. "If you're big enough to have an employee, you're big enough to outsource."

Payroll companies like ADP are experts at calculating payroll taxes and track regulation changes closely, ensuring that employment tax reports and end-of-year paperwork are submitted correctly and on time

Could your business benefit from outsourcing its payroll? Here are some considerations:

• Accounting: Is someone at your business up-to-date with the latest best practices in areas such as cost accounting, payroll and year-end tax planning?

• The law: Are you familiar with the Canadian Bill 198 and/or US-based Sarbanes-Oxley Act and how they could affect you and your own internal controls?

• Security: are your computer systems and facilities for internal company and employee data secure? Do you have technical support staff in place to implement safeguards and protect your information?

• Growth: Is there a possibility that you may one day sell your company or offer shares to investors? That won't happen if your business isn't compliant.

To find out more about how outsourcing can benefit your business, please visit www.adp.ca.

- News Canada