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Payroll Management:How to Minimize Risks
Pierre St-Arnault, Product Manager
Twitter: @pstarnault #FUNDICAROADSHOW #NETHRIS
Starting a business …
BOUTIQUE
You hire your first employee …
+BUT WAIT…
Employees vs ContractorsWhich Option is Right for My Business?
1. The salaried employee can contact the Employment Standards Commission if he feels he is subjected to unfair conditions. The contractual can’t.
2. The salaried employee represents a fiscal burden for the employer. Not the contractual.
3. The salaried employee has a loyalty responsibility to his employer, established by law. Not the contractual.
4. The contractual employee is considered as an independent self-employed entrepreneur. Not the salaried.
5. Because of his status, the contractual or self-employed employee benefits from different tax treatment.
Some general concepts…
Employees vs ContractorsEstablishing the status
• Control• Tools and equipment• Subcontracting work or hiring assistants• Financial risk• Responsibility for investment and management• Opportunity for profit
Factors to consider
So finally,you hire your first employee …
+
The troubles begin …
Payroll managementdoes not end oncethe cheques are signed …
GOVERNMENT REMITTANCES
BONUSWCB PAYMENTS
VRSPSEVERANCE PAY
STATUTORY HOLIDAYSVACATION PAY
RECORDS OF EMPLOYMENTRETIREMENT ALLOWANCES
SUPPORT PAYMENTS
DEDUCTIONS AT SOURCE
CHEQUE PRINTINGTAX SLIPS
YEAR-END PERIOD
TAXABLE BENEFITS TIPSGOVERNMENT REQUIREMENTS
CANADA REVENUE AGENCY
DATA ARCHIVING
TAX FREE SAVINGS ACCOUNT
Compliance
Don’t play with fire!
There are 190 regulatory requirements.
Including employment standards andtax tables and those fun calculation formulas ...
An employee leaves …
The employeris responsiblefor the recordof employment
GOVERNMENT REMITTANCES
BONUSWCB PAYMENTS
VRSPSEVERANCE PAY
STATUTORY HOLIDAYSVACATION PAY
RECORDS OF EMPLOYMENTRETIREMENT ALLOWANCES
SUPPORT PAYMENTS
DEDUCTIONS AT SOURCE
CHEQUE PRINTINGTAX SLIPS
YEAR-END PERIOD
TAXABLE BENEFITS TIPSGOVERNMENT REQUIREMENTS
CANADA REVENUE AGENCY
DATA ARCHIVING
TAX FREE SAVINGS ACCOUNT
Is payroll really yourfield of expertise?
Privacy
The employer is responsible for protecting their employees’ personal information
Personal Information Protection and Electronic Documents Act
(PIPEDA)
Identity theftAccess management
Business risks
Does your recovery plan include
payroll management?
PAYROLL
Your data Your resourcesYour equipment
Financial risks
A simple late payment can cause many problems …
Failure to deduct …• 10% of the amount you did not deduct• 20% on the second failure
Compliance Privacy Business risks Financial risks
Summary …
Satisfaction
Accurate and timely payroll is invaluable for employee loyalty
Is payroll really yourfield of expertise?
What are your options?
A spreadsheet? Your accountant?
Accounting software?
Do you have another option?
What aboutPayroll Outsourcing?
Save Time(Better focus on your core business)1
TOP 5 REASONSYOU SHOULD OUTSOURCE PAYROLL
Payroll Entry GL Journal Entry Time Banks Looking for Legal Information0
2
4
6
8
10
12
Payroll Processing – Time Consuming Tasks
Source: Echo Sondage 2013
Reduce Costs(Time saved is money saved)2
TOP 5 REASONSYOU SHOULD OUTSOURCE PAYROLL
Get Access to Expertise(Payroll management is complex)3
TOP 5 REASONSYOU SHOULD OUTSOURCE PAYROLL
End-of-Year Looking for Legal Information Time Banks Records of Employment0
2
4
6
8
10
12
14
16
18
Payroll Processing – Most Complex Tasks
Source: Echo Sondage 2013
Reduce Risks(Avoid headaches)4
TOP 5 REASONSYOU SHOULD OUTSOURCE PAYROLL
Worry-Free(You are not alone)5
TOP 5 REASONSYOU SHOULD OUTSOURCE PAYROLL
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© 2009 – 2016 CGI PAYROLL SERVICES CENTRE INC. CGI PAYROLL SERVICES CENTRE INC. IS THE SOLE SUPPLIER OF PAYROLL PROCESSING SOLUTIONS AND SERVICES MARKETED UNDER THE BRAND NAME NETHRISOF WHICH THE NATIONAL BANK OF CANADA ACTS SOLELY AS DISTRIBUTOR. NETHRIS IS A REGISTERED TRADEMARK OF CGI PAYROLL SERVICES CENTRE INC.
