Updated: May 3, 2020
No, of course not, that wouldn’t make any sense. Please allow me to stop you there, before you start talking about being a vegetarian, gluten intolerant, paleo, keto, vegan, or any other diet restrictions you may have or follow, just stick to the fundamentals; hamburgers and fries are meant to be on the same plate. So now that we agree, eating a hamburger without the fries doesn’t make any sense; processing your own payroll doesn’t make any sense either.
Look at it this way. Being a business owner keeps you busy right? You have your hands full and your to do list still keeps growing. Am I correct? So, stop thinking about that stuff for a moment and reflect on this; what is the ONE thing you do for your business that generates the most revenue? How much does that one thing generate you per hour? $100, $200, or is it even more? Now, keeping that in mind, how much time do you spend working on your payroll? How much time do you spend collecting employee hours/input, chasing employees, making calculations, making payments, auditing or completing ROE’s? If you had to guess, One, two, three hours? Now multiply that by your pay frequency. If you pay your employees bi-weekly, that’s 26 pay periods a year.
You can see the point I’m trying to make. Stop trying to convince yourself that you are saving money by processing your own payroll. Up to this point I have only focused on the amount of time you could save, and the revenue you could potentially make during that time. But what if you made a mistake somewhere? What if you miscalculated something? What if you miscalculated something over several pay periods?
Good thing you were saving all that money by completing your own payroll, you can now use it to pay the fines, penalties, or amounts owing to the CRA. I’m not saying it happens to everyone, but it does happen. Payroll is daunting, complex, time consuming, must be accurate, and by the rules. Working with a payroll provider can be a big time saver for you and your business. With one easy payment you can pay your employees, pay your remittances, and even pay yourself. Go ahead and have those fries!
Having time available to focus on your profit driving activities will have a huge impact on your business. If this makes sense, consider using a payroll service provider, unless paper ROE’s are your favorite activity, then I’m not sure I can help.
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