Handling Payroll for Your Small Business

It is a very time-consuming task to take on doing payroll for your employees. You have to learn the rules for holidays, commissions, T4’s and ROE’s. Have you ever done up an ROE for someone? Oh my, the rules!

Do you use a payroll software or are you using the calculations from the CRA site? Often I find that CRA (of all people) do not calculate to take enough taxes off for a year. Meaning your employees are going to be paying in and they won’t be happy!

Using a payroll module of an accounting software with the updated tax codes is best. But this can become expensive, typically the most expensive part of the software. But you still need to know the rules for paying your employees!

My advice: pay a qualified bookkeeper or use an outside payroll firm. There are many here in Nova Scotia. If you think it’s expensive, think about the time it takes (or could take) you to do your payroll each payday!