Tackling Payroll Challenges
Let's start with a quick question:
If this resonates with you, you may have encountered some common payroll issues. Let me share a quick story. One of my clients, running a consulting business, used CRA's payroll calculator and manual EFTs to pay their employees. Unfortunately, they occasionally missed the deadlines for CRA remittances, resulting in significant penalties. For instance, if you're late with a $10,000 payment, CRA imposes a 10% penalty right off the bat, plus interest if delayed further. This particular client ended up paying a staggering $20,000 in interest and penalties for being late on payroll remittances and T-4 filings.
To avoid these costly errors, I recommend automating your payroll process. WagePoint is a fantastic platform for this purpose. Here’s what it offers:
Switching to an automated system like WagePoint can save you time, prevent penalties, and reduce accounting fees. If WagePoint isn't for you, other options like ADP and Ceridian also offer similar features. Just make sure your chosen software automates CRA remittances, T-4s, and ROEs.
Transitioning to a new payroll system can be challenging, especially when moving year-to-date balances and ensuring compliance. Our team is here to help you navigate this transition smoothly.
In our next session, we'll explore how to balance taking dividends and payroll as a shareholder. This decision can have a significant impact on your tax situation, so it's crucial to get it right. If you're planning to take money out of your company, make sure you tune in for the next video.
I'll see you next time! Remember, as long as your sales are growing, your business is on the right track. A dollar earned may not be a dollar kept, but with the right strategies, you can keep more of what you make.
