Learn about all the benefits of an automated payroll software. Discover what to look for and the essential features of the best payroll software in Canada.
Payroll management is an essential part of any small to medium-sized business. There are a lot of things to consider when putting together a payroll system. Keeping on top of changing tax rates, remittance, payment schedules, and more can be tiresome and can also open the door to human error. An automated payroll system can help you stay organized, stay within the laws, and offer a level of transparency to your employees that a manual payroll process cannot.
There are many benefits to switching over to an automated payroll, including the ability to add multiple payees, take advantage of cloud-based storage system, and more.
What are the Benefits of Using Online Payroll Software?
QuickBooks + Payroll will keep you on top of all of your company’s records. With the addition of an automated payroll software, QuickBooks can ensure that all of your employees will be paid accurately and on-time.
With everything in one place, it is really easy to stay organized. Once you add payroll software to your QuickBooks account, you will get a complete picture of the health of your business. With in-app reports and the payroll dashboard and financial reports, it has never been easier to have a complete picture of how your business is performing.
These reports will help you see how much you’re paying on taxes if gaps exist in your payroll process, an overall view of benefits and important items like worker’s compensation. These real-time reports will give you an accurate view of what’s happening in your company.
QuickBooks + Payroll will also make sure your payroll is paying your employees accurately. Payroll software allows you to set different pay schedules and frequencies and will automatically calculate the proper deductions like CPP, EI or vacation pay. It will also stay on top of changing tax rates in real-time to ensure your employees are getting the correct pay every time.
Plus, to ensure your employees are getting paid for their hours worked, QuickBooks + Payroll syncs with their timesheets.
Cloud-Based Storage System
An automated payroll system has a cloud-based storage system, so it is accessible to everyone and it syncs data across all devices in real-time. Cloud-based systems are also compatible with mobile apps, which means your employees can gain access to their paystubs and other payroll information from their phones.
Cloud-based storage systems will store your payroll information on servers in a remote location and can only be accessed through a secure login. It also provides secure back-ups, just in case something malfunctions with your digital device.
Stress-Free Tax Season
With automation comes the ease of knowing that everything will be organized for tax season. As previously noted, QuickBooks + Payroll automatically take deductions and sales tax into consideration when adding up your numbers come April. You can also file your remit and payroll taxes directly through the app!
Another feature on the QuickBooks payroll software includes the automatically preparation of T4s, T4As, and Relevé 1’s for your employees. The software also stores a complete record of employment that will be automatically filed with Service Canada when required.
With all the information is securely stored, QuickBooks + Payroll will offer a clear snapshot of your payroll for you and your employees. Give your employees access to view their pay stubs and payroll forms on QuickBooks Workforce. They can also update their information and track their vacation days and deductions.
QuickBooks + Payroll also gives you the ability to outsource your payroll system. All you have to do is make your books accessible to a payroll partner.
Multiple Payees and Payment Types
QuickBooks + Payroll makes it easy to juggle your diverse workforce. From contractor to employee to wage to salary, automated payroll software will organize it all! In the mobile app or desktop version, a simple click of a button. You can automatically enable direct deposits to transfer funds into your employees’ accounts no matter where they are.
Make sure the payroll software works to fit you and your employees’ needs. QuickBooks + Payroll offers a lot of options for the frequency of the payment period.
Working through your payroll can take a lot longer when it’s not your strong suit. Even if you have a dedicated employee with experience in payroll, manually entering payroll takes longer than using an online payroll system. You can process the job much faster, which leaves you, or your assigned staff member, with more time to tackle other items on the to-do list.
The system handles the calculations automatically, so you don’t have to key in the information by line and then check your work. After the initial payroll setup with each employee’s information, the payroll system requires very little input. You enter the hours for that pay period plus any special circumstances, such as bonuses, overtime, or time off, and the system handles the rest. It’s much faster than manually entering each piece of information every pay period.
Greater efficiency in payroll leads to another benefit: saving money. Your time costs you money. When you spend your time handling payroll, it keeps you from other duties that can help generate more revenue for your business. When you have a dedicated team member doing the job, you’re paying a salary for the corresponding work hours. Getting payroll done faster means you’re spending less salary money on the task.
Payroll software can also save money over using outside sources. Payroll systems usually charge a monthly fee for access to the program. This fee generally falls below what you would pay a full-time employee or a freelance payroll specialist to handle the job. While outsourcing payroll duties makes sense in some cases, you may find the job easier and more cost-effective when you use online services.
Reduce Fraud and Tax Issues
Using payroll software online can reduce the chances of fraud within your business if a person manually completes the task. The system handles the calculations, making it more difficult to manipulate the numbers. The program also creates an audit trail that lets you easily track activity or prove the efficient management of payroll. Even if you don’t suspect an employee of fraud, putting this safeguard in place gives you peace of mind going forward.
That audit trail also comes in handy at tax time. The system automatically calculates tax amounts for you to make withholding and paying taxes easier. Online software also updates automatically as tax laws or calculations change to help you avoid issues with paying your payroll taxes correctly. It also ensures you are complying with provincial and federal income tax laws.
Get Expert Advice!
Having trouble setting up your payroll? QuickBooks will pair you with a dedicated payroll specialist who will help you with set-up, run your first payroll, and offer free support during your onboarding experience.
You will be able set-up a payroll system that works with your business and remains within the tax laws of your province. Book a demo with one of our specialists today to witness the tool firsthand.
Payroll Tips & Tricks
Choose a Robust Payroll Software Solution
Managed payroll for small business requires precision, so it’s best to use a high-quality software package that handles most of the functions for you while safeguarding against potential errors. Examine major payroll software solutions such as QuickBooks Online when you need multiple levels of small business support. Whether you need a solution for simple payroll and tax filing or a more powerful option that includes direct deposit and payments, great accounting software takes much of the burden off your shoulders so you have more time to focus on growing your company.
Take Care of Payroll Tax Payments On Time
Deducting, paying, and reporting payroll taxes properly are vital elements of running a sound business. By following filing requirements and making payments before deadlines, you can avoid potentially expensive penalties, interest, and fines. Setting aside funds weekly, bi-weekly, or monthly for payroll taxes helps you stay in compliance. By putting this type of system into place, you enjoy the peace of mind that comes from knowing you can pay well before the deadline.
Set up a Separate Bank Account Just for Payroll
Monitoring the amount of cash available to pay your business expenses is essential. If the cash to pay all your bills and expenses resides in a single account, monitoring your money becomes more difficult. Because paying employees proves one of the most important parts of your small business, consider establishing a separate bank account exclusively for payroll. A small business payroll checking account gives you an easy way to verify you have the necessary funds to cover your employees’ paycheques. It also makes it easier to track of your routine government tax payments.
Consider Placing Employees on Salaries
Salaries offer more predictability than hourly wages, and they tend to stay steady over time. Hourly wages can vary greatly, particularly when you account for overtime hours. This means that from a payroll standpoint, paying salaries helps you budgets more consistently than paying hourly wages. Putting employees on salaries streamlines the payment process when you manage payroll for small business.
Plan for Payroll-Related Expenses
Now that you have a plan for setting aside the money to cover employees’ salaries, add in other things you need to manage small business payroll. With full-time salaried employees on staff, you need to account for payroll taxes, retirement plan matching contributions, and benefits as part of the total compensation package. Quickbooks small business payroll seamlessly handles these additions as you go, and it also lets you easily remove workers when they leave your employ.
Classify Workers Correctly
Whether you hire employees or self-employed individuals makes a big difference in your payroll and their paycheques. Their employment classifications impact their rights to collect employment insurance and pension benefits, and it also affects their income tax treatment. You pay out less in payroll expenses for independent contractors, but you need to decide on the classification to protect your business and the rights of your workers.
If you’re unsure how to classify workers, review the Canada Revenue Agency (CRA) guidelines or request a ruling before you make those classifications.
You depend on your employees to do a great job for you and your customers or clients, and your employees depend on you to compensate them well, in full, and on time. In turn, QuickBooks helps you keep track of your small business’ financial heath so you both have reliable paycheques. Sign-up for a subscription to QuickBooks + Payroll to get your payroll started today!