2017-12-05 00:00:00 Payroll English Ensure accurate reporting and maximize business profits by implementing an efficient payroll program for employee expense tracking. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/12/accountant-sets-up-payroll-to-manage-employee-expenses.jpg https://quickbooks.intuit.com/ca/resources/payroll/setup-payroll-manage-employee-expenses/ The Importance of Setting Up Payroll to Manage Employee Expenses

The Importance of Setting Up Payroll to Manage Employee Expenses

1 min read

When you setup payroll from the start for a small business, it can help you reduce accounting errors and maximize profits. It can also help you avoid the possibilities of CRA penalties and back taxes. It’s possible to use the long method of accounting by tracking every payment and salary payable by using a spreadsheet or pen and paper, but for someone inexperienced in accounting and account reconciliation, this increases the likelihood of introducing errors. A payroll system such as QuickBooks calculates salary expenses accurately and ensures a business remains in compliance with Canada Revenue Agency laws and regulations. The software can also simplify information so it’s easier to understand and provide printable reports. Most software programs have user-friendly add-on features, like expense tracking that keeps an accurate log of mileage, employee expenses, and bonus pay and adds them to the current pay period for timely payments. Some payroll systems work in conjunction with time tracking programs that give exact numbers of when an employee works to improve accuracy in salary payments. These programs are useful for remote workers who frequently work from other locations and those that don’t have access to the company time clock. In addition to time tracking and software, companies should maintain files on every employee. These files should include important information such as hire dates, a TD1 form that determines the amount to be withheld from each paycheck, and other supporting documents. Because payroll is a serious business, salary payable information should be kept in a secure location for easy retrieval in the event of a payroll audit.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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