Published on July 7th, 2017 | by Day Trader
Does Your Business Do Work in Both the US and Canada?
There are some specific challenges that U.S. companies operating businesses north of the border face. The differences in how taxes are applied and deducted, for example, present a special challenge.
Everything from determining overtime pay for exempt employees to correctly calculating insurance and benefits may seem like small issues in a single paycheck, but those small problems quickly multiply when they are left unchecked for months, and even years. If you have ever been a victim of a payroll error that went on for many months, you understand the challenges that occur. From being asked to payback the error in one lump sum to having significant payroll deductions made month after month, a payroll error is a mistake that can have a major negative impact on your family and your future.
It probably comes as no surprise that more than 85% of certified public accountants (CPAs) recommend that small businesses employ the expertise of professional payroll providers. Not only do outsourced payroll providers insure accurate paycheck to paycheck distributions, they also can provide the specific details that are needed for end of the year tax preparation, a task that is made more difficult if your company does business in both America and Canada.
Consider some of these other statistics about the payroll management and HR processes:
- U.S. businesses can easily make potentially costly mistakes paying and managing their Canadian employees by inappropriately relying on mistaken practices and misinformation.
- It can be especially challenging for American based companies to ensure they are in Canadian compliance when paying their Canadian staff.
- The best payroll providers are able to accurately record services to U.S. and International companies that are considering hiring in Canada. These payroll outsourcing providers also understand employment standards compliance so companies who are unfamiliar with Canadian rules and regulations will not make mistakes. From both a HR and payroll perspective, these U.S. companies operating businesses north of the border do not have to learn a new country’s rules in order to hire in Canada
- Without the help of a payroll provider, many U.S. firms are reluctant to expand into Canada because of the jurisdictional differences between the two countries.
Understanding that these challenges can cause big problems is a reason U.S. companies operating businesses north of the border decide to outsource their human relations (HR) and payroll services.