Running a business costs money – from suppliers to staff, there are countless parties to pay. In addition to making sure all your employees are paid their wage, you may need extra support to help ensure your payments are error-free, timely, compatible with provincial and federal laws, and well documented. Payroll software helps business owners pay their employees while considering all the factors that can affect the process.
Ways To Process Payroll
There are two ways to process payroll, each with varying pros and cons.
In-House Payroll Processing
This is done by an internal branch of your business, such as a human resources branch, or accounting section. The people paying your employees are employees themselves, and get paid under the same process.
- Less expensive than hiring a third-party processor
- More control and security over data and updates
- Labour costs
- Chance of human error in compliance with government payroll laws
- Time-consuming for employees who may have other duties
Third-Party Payroll Processing
This is done by an external, third-party provider. A business would register with the payroll company and share information such as sign-in sheets and other employee data. Then, the company would take care of paying your employees.
- No labour costs
- Higher chance of compliance with government payroll laws
- Higher chance of accuracy since the company is experienced
- Outsource costs
- Chance of data compromise
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Best Canadian Payroll Software
If you’ve decided to save time and ensure greater accuracy in rolling out your payroll, take a look at some of these great Canadian payroll software providers.
Wave Accounting/Wave Apps
Wave Payroll offers easy-to-use software that focuses on payroll features. Its simplicity makes it a suitable option for smaller businesses with under 25 employees. Since it has many add-ons offered at an additional charge, larger companies might not be well-matched with Wave, if they are looking for an all-inclusive option.
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- Automatic tax remittances: Automating remittances in a timely fashion ensures you don’t forget to report and you don’t incur any late penalties.
- Automatic payroll journal entries: Helps reduce the amount of time you need to spend on manual bookkeeping.
- Employee access: Wave is applauded for its easy-to-use software for employees to report their time and attendance and to access their pay stubs, banking information, and tax documents.
- Payroll employee and contractor: Wave allows you to issue payroll to both employees and contractors with their flexible service.
- Direct deposit: You can pay employees directly by depositing funds in their bank account.
- 20$/month base fee, additional $6 per active employee and $6 per independent paid contractor
- 30-day free trial
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Quickbooks Online (QBO)
Integrating with Xero and FreshBooks, Quickbooks Online is a simple payroll software that offers automated payments and tracked CRA deductions.
- Track time: Quickbooks offers an add-on timesheet feature that allows employees to fill out their attendance. Then, the payroll software auto-populates the data to save you time in data entry.
- File taxes: The software calculates taxes for you and allows you to track your CRA deductions; however, you’re still responsible for remitting the deductions.
- Payroll forms: Quickbooks prepares T4 and RL-1 forms and assists you with calculations needed to complete a Record of Employment.
- Employee portal: Employees can easily access and track their pay stubs, vacation, and year-end tax forms.
- $20/month + $3 per employee per month for the Essentials Plan.
- 50% off the first three months of membership
Simple Pay Canada
Simple Pay allows for integration with Xero and Quickbooks, and is known for its quality reporting. This program is mobile friendly and designed with the Canadian business owner in mind.
- Tax remittance: Complies with tax and remittance rules by automatically remitting source deductions every month, to save yourself the hassle.
- Timesheet: Ensures accuracy in pay by keeping meticulous records of attendance.
- API ready: This allows for seamless integration with other HR and employment systems.
- Customizable: Increased flexibility and customization lets you generate mapping options to adjust payroll as needed.
- Business Payments: Allows for direct deposit payments to employees, contractors, and the Canada Revenue Agency.
- Check out Simple Pay’s business payroll calculator for an accurate estimate of pricing.
ADP Workforce Now
ADP Workforce offers a user-friendly payroll service that helps your business deliver payroll in a compliant, accountable way. With impressive analytics, this software gives you unique insights into your business’s HR world. ADP is suitable for small businesses, as well as for larger enterprises with thousands of employees.
- Built-in tax management and compliance expertise: This saves you the trouble of ensuring compliance with federal laws around payroll.
- Process payroll online: Simple online database with the ability to see real-time calculations before submission.
- Insightful Dashboard: Displays analytics to help business owners make evidence-based decisions, as well as T4s, attendance and other information for employees.
- Book an appointment and request a quote to find out about pricing for your business’s payroll.
- First two months free
Rise People offers a user-friendly HR software that covers payroll, benefits, company culture, and performance management. This software offers unique reporting to help you understand your business’s finance and HR patterns.
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- Automate Payroll: Automation saves you time by taking care of T4s, remittances, discrepancies, benefits, and ROEs.
- Taxes: Assured compliance with tax laws and the Employment Standards Act.
- Time and Attendance: Timekeeping software ensures accuracy in attendance recording, and allows for real-time staff scheduling.
- Payroll Reports: Clear, extensive and exportable reporting helps you understand your business’ finances.
- Customization: Update and change information at your convenience and adjust payroll as needed.
- Send Rise a message for pricing inquiries.
How do I set up payroll with the CRA?
When must I remit my payroll tax deductions?
What happens If I report my remittance late?
Payroll software can use up a big portion of your business’s monthly budget, but it’s often worth the time that you gain back. Additionally, many of these programs help ensure your business is compliant with tax laws, saving you money in potential penalties. Make sure you conduct research and shop around before choosing the right program that meets all your needs and the needs of your business.
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