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Study Reminders
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Set your study reminders

We will email you at these times to remind you to study.
  • Monday

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    7am

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    Tuesday

    -

    7am

    +

    Wednesday

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    7am

    +

    Thursday

    -

    7am

    +

    Friday

    -

    7am

    +

    Saturday

    -

    7am

    +

    Sunday

    -

    7am

    +

Payroll is the function of paying your employees in exchange for services rendered. The primary objective of your payroll system is to ensure that you pay your employees accurately and on time. Being paid is a basic expectation and right of your employees, so it is important to understand how important it is to have a timely and accurate payment system, and how not having one can negatively impact morale and ultimately the ability to retain your staff. It is important to classify the individuals who work for you as either employees or non-employees. Pay for employees is processed through your payroll system and includes required deductions, such as income tax and employment insurance premiums. You are required to remit any employee income taxes withheld at source to the government. In general, if someone regularly works at your place of business, and you direct the person’s work, he or she is an employee. Non-employees, such as independent contractors and consultants, are not part of your payroll and you are not required to pay benefits or withhold taxes. Instead, contractors and consultants are considered to be independently employed and typically submit an invoice to cover the cost of services they have provided to your company. If you have any doubts about the appropriate status of your workers, you should check with your local Revenue or Employment Standards agency. Governments commonly legislate a pay period that requires an employer to pay at least semi-monthly and within eight days after the expiration of each pay period. Under Income Tax regulations, employers paying wages are usually required to withhold tax from these payments. You may also be legally responsible for making other deductions from your employee’s paycheque, such as Pension Plan and Employment Insurance. Since these deductions may have percentages that change, you will need to verify them each year with the relevant authorities. Most software accounting packages that are used in industry, also send updates with new tax rate information at the beginning of each year. In addition, employers usually have payroll-related obligations under the relevant Employment Standards. For example, payroll records must include certain employee information, including name, date of birth, and occupation. These records must be kept at the employer’s principal place of business and be retained by the employer for two years after the employment terminates. Ensuring accurate and timely payroll processing can be a time- consuming obligation. Given the time and expertise required, many smaller independent businesses find that outsourcing payroll to an independent bookkeeper can offer many advantages to their business and employees. In addition to processing your payroll, these experienced professionals can also be responsible for maintaining updated knowledge of all legislation, making technological changes to comply with legislative changes, and providing answers to any payroll-related questions from employees.