Payroll is one of the largest expenses a business has. There are also so many elements and processes that come with payroll.
When you have employees who work for you and are representing your business you want their pay to be seamless. No issues.
There is enough to deal with already when running a small business, that the last issue you want is an unhappy employee because holiday or vacation pay was missed or an ROE was issued incorrectly.
Even if you have only one employee it is really important to make sure that proper deductions are being made, remittances are filed and paid on-time and the numbers are being recorded properly.
The penalty can get up to 20% for remitting late.
From a personal stand point, I always suggest outsourcing payroll as the best option, but if you have only 1 or 2 employees and you don’t want to outsource or use the payroll function in your accounting system yet, then there are options.
CRA has a free calculator called PDOC.
Payment evolution goes a step further and offers a free plan where you can use their calculator but also get electronic payslips and tax forms are completed such as a T4. Now in this free option, you cannot print the reports, but you do have the information to fill out the necessary forms that you can find online. Have a look at the free option and what it offers.
When using free options, just ensure that you have a good spreadsheet to track things as well.
At the end of the day, having a payroll system is necessary.
TIP: Set up your tax filings under your online banking.
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