For any company with employees, payroll is an essential part of doing business. From cutting pay cheques to calculating tax deductions, the payroll department has a lot of responsibility.

But what is payroll processing? Payroll processing consists of many different tasks including totaling hours, performing gross-to-net calculations for each employee, calculating and depositing payroll taxes, and filing tax returns accurately and on time. For small business owners, accounting and tax preparation can be especially difficult, particularly if they have no prior experience with financial record keeping. For this reason, many small businesses have outsourced payroll processing to save time and money, especially during tax season. In addition, HR services, employee benefits, and payroll outsourcing allows the business owner to focus on their core business.

In addition to domestic payroll services, record management services can help United States businesses who wish to expand into Canada. Because of the jurisdictional differences between the two countries, many U.S. companies are hesitant to expand, in spite of the benefits and increased profits they might receive. When they do expand, ensuring they are in compliance when paying Canadian staff can also be difficult. Outsourcing to a payroll processing company is often a quick and easy solution to these problems.

Payroll outsourcing providers do a lot for Canadian business owners. From financial management services to employee payroll deductions, payroll services keep small business accounts balanced and legal. With small businesses identified as the greatest source of uncollected taxes in Canada, the Canada Revenue Agency is focused on enforcing payroll tax policies for small business, so ensuring that everything is correct has become a major priority.

So what is payroll processing? Payroll processing can be internal or external, from simple cheque cutting to federal income tax payroll deductions, to filing all of a company’s taxes at the end of the year, payroll processors do it all.