| Performing payroll activities can be a very difficult task. | | | | You can work with your accountant to determine if |
| I remember working in a nursing home where there | | | | adjustments should be made to your source |
| were about 50 staff, each with different rates of pay, | | | | deductions. You can increase them to avoid having to |
| hours and benefits. It was horrible! I now have a | | | | pay additional taxes at year end or decrease them to |
| beautiful and simple program that practically runs itself! | | | | allow for RRSP contributions or additional deductions. |
| You are likely the only person in your business who | | | | Having salaried employees is a very expensive |
| has a full-time salary with benefits. I have always paid | | | | proposition and I discourage it. A full-time staff member |
| myself as though I was an employee so that I would | | | | gets paid even if you are away from the office. You |
| have a regular income, accurate records and the ability | | | | are also required to pay employer contributions for |
| to contribute to government pension programs. | | | | them which usually adds at least 17% to your |
| Besides it feels good to get a regular cheque! The | | | | expenses. Holidays and sick leave are paid even |
| business classes my salary as an expense. The only | | | | though you do not have productivity during those |
| thing that I do not pay is Unemployment Insurance | | | | hours. |
| contributions because I would not be entitled to file a | | | | I prefer to hire contracted employees who do not |
| claim at any time due to the fact that I actually own | | | | receive any benefits. They submit time cards only for |
| the business. | | | | the hours worked which are defined by you and can |
| By setting up the Payroll Program to issue a cheque | | | | therefore be controlled. |
| for me every second Friday, I receive 26 cheques per | | | | One of the benefits of owning your own business is |
| year. In the early years or in times when I have extra | | | | that you can hire family members for tasks. The |
| expenses, I might print my cheque but not cash it for a | | | | double benefit is that they have some income and you |
| couple of days. That way, the business has a little | | | | have a write-off for income tax. Win/Win! |
| leeway but the paperwork is accurate. | | | | Government policies and procedures usually change |
| Remittances for Income Tax and government pension | | | | each year as due Income Tax laws. It is therefore |
| must be paid either monthly or quarterly (as defined by | | | | important that you have a good accountant and |
| the government). Penalties can be levied for late | | | | software program that will update you and help to |
| payment. | | | | make the necessary adjustments as they occur. |