Business owners know how many aspects go into processing payroll taxes. Managing payroll taxes in house means having to total hours, perform overly complex calculations, and filing tax returns on time. All of the previously mentioned tasks can become extremely time consuming for a business owner. In this post, you will learn the benefits of hiring a company to help with payroll in Canada for companies based in the United States.
There are almost 200 legislative requirements that must be taken care of when processing payroll for Canadian employees. It’s no wonder that companies based in the United States are so hesitant to expand. However, a company that regularly process payment for Canadian employees can handle all of these processes for your business.
Throwing in taxes for an additional country can be a burden. Company payroll services are aware of payroll tax rates in each Canadian province. Knowing the rates of each province saves your company from having to perform these complex calculations.
In addition, a business caught claiming false independent contractors could be barred from conducting business in Canada. Part time and full time Canadian employees are also subject to different payroll taxes, depending on insurance plans offered.
In closing, hiring a Canadian payroll service has many advantages. A company needing to expand further north will have an easier time having payments managed by another business. These businesses are aware of the ever changing province and territory taxes in Canada. In addition, these businesses will know how to pay employees as they vary by type of work performed.