The process of payroll set-up can be a difficult task for you as an employer, like switching payroll systems or building a new one. Do you feel the pressure to stay compliant? Or do you have an idea of what important information you need to work through this process? If you are worried and won't be able to figure it out on your own, Yogi & Associates are here to provide their help to answer your questions and navigate the process. In addition, our professionals are here to give information about the payroll checklist.
Payroll Management: The Beginners Guide:
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Setting Up Payroll for Small Business in Canada:
You need to figure out how to set up and manage your payroll system as a small business owner. Payroll is a complicated procedure controlled by regulatory duties that affect you as a business and can result in penalties if mishandled. A payroll must include information on employees, their working hours, salaries, taxes, and all data of payments given to employees.
The Payroll Set-up Checklist:
We have divided the payroll checklist into two categories:
- The payroll checklist for business.
- The payroll checklist for employees.
1. The Payroll Checklist for Business:
- Year to date payroll information of each employee.
- Payment method for employees (weekly, Biweekly, Monthly)
- Types of rewards, benefits (health and dental insurance), vacations, or sick leaves.
- Tax information and remittance schedule.
- Business number and CRA Payroll Account Number.
- Address of the company
2. The Payroll Checklist for Employees:
- Employee's full name
- Date of birth
- Home Address
- Email Address
- Employee's salaries, additions, deductions, and employee's contributions.
- Bank deposit information
- Hiring and retiring dates
Five Steps to Set Up Payroll System in Your Company:
To run a payroll process in your company can be intimidating, and the consequences of getting it wrong can be financially and legally costly. Following are the essential aspects you need to set your payroll system:
- Business Address
- Business Number and CRA Payroll Account
- Remittance Schedule
- Bank Account
- Setting up your employees
1. Business Address:
You need to make sure you add your business address correctly. You must include street number, state, name, region, postal code, and telephone number.
2. Business Number & CRA Payroll Account:
You will need a business number for setting up a payroll system in your company. You can register your business number online by email, fax, or phone. You can click Register BN/Payroll Account Number to know more about how can you register for a business number and CRA Payroll Account.
Your business number is also a part of the CRA payroll account number, which contains the following information:
- A 9 digit BN is used to represent a company.
- The CRA program account is defined by a two-letter program identifier code (RP for payroll)
- A four-digit reference number that represents a specific CRA account.
3. Remittance Schedule:
The next step is the remittance schedule. First, you have to figure out which category of remittance schedule you want. If you want to learn about the types of remittances, click Remittance schedule. Your payment method is determined by the two-year average monthly withholding amount.
4. Bank Account:
The next step is giving correct information about your bank account. If you fail to provide accurate bank account details, it will be difficult to pay employees.
5. Setting up your Employees:
After adding all the correct information of your company, you need to give accurate details of your employees too which includes:
- Employees first/last name
- Home Address
- Email ID
- If the employee lives in a different state apart from where he works, then mention his province where he works.
- Hiring date
- Pay rate
- Payment method is given to the employee
- The tax amount is taken from the employee's salary.
Wrapping it up!
Setting up a payroll system can be a difficult task as it has a lot of challenging situations. To make this process run successfully, it is necessary to provide all the essential information required and ensure it is correct to avoid any financial penalties. If this whole process is complicated for you to handle, you don't have to worry as Yogi & Associates are for you with our team to assist you with your payroll process. We will make sure you fulfill all the requirements for the payroll checklist to run this system efficiently.