Business owners face constant challenges while running a business. One important concern of any business is finding the right talent. There are times when talent is found that is from another country. One of the biggest hurdles in hiring Canadian employees is figuring out how to pay them. The different tax rules between countries, like the United States and Canada, can make it difficult to figure out what to do. However, payroll providers can help with the payroll needs of your business.
It is smart for a business owner to want to cut corners, whenever possible. However, trying to do your own payroll can lead to many headaches. You will take on extra responsibilities pertaining to counting up hours, calculating gross to net figures, handling payroll taxes, and filing business tax returns. Essentially, business owners who try to handle these financial services are adding the work of an entire team to their workload.
One particular aspect of handling your own payroll is processing paychecks. If you get these figures off, your employees could be out of a paycheck. These paychecks are needed to provide them with everything they need to survive. You want to be sure that international payments are properly handled by professional payroll providers. These companies know how to provide the proper payments for your international employees.
Mishandling payroll figures won?t just mean incorrect employee checks; these figures could land your business in jeopardy. If you continue to miss errors in handling the payroll of your business, it could really add up. In addition, these financial discrepancies are not something you want on the taxes for your business. Owners of businesses have many tasks to handle and, sometimes, they don?t have the experience to accurately keep records.
Much confusion between countries can easily be cleared up by payroll providers that know how to handle international situations. Many financial professionals can also see the benefit of using payroll providers to handle international employees. Studies show that 85% of CPAs or certified public accountants state that small businesses should enlist the help of professional payroll providers.
One additional headache can occur when you are paying a foreign employee but end up paying too much. Companies based in the United States can face many compliance problems when trying to pay a Canadian employee. Differing rates and tax systems mean that important calculations are done to ensure payments are being properly made by a business. Not paying a Canadian employee correctly can mean big losses of company profits due to using incorrect company payroll practices.
Hesitating to hire a qualified but international employee could mean your business is missing out. Recent research shows that many companies in the United States hesitate to consider expansion into Canada due to differences in the jurisdiction. You don?t want your business to miss out on that potential star employee because of differing payroll taxes. Using a payroll provider that handles international situations means you can have your pick of potential new hires.
In conclusion, payroll service solutions can provide many benefits for a business. A business owner trying to handle payroll services takes on a lot of extra work. Incorrectly reporting paychecks can lead to frustration among employees. In addition, incorrect financial statements can mean gigantic burdens for your company during tax time. A large number of recently surveyed accountants mentioned that small business should use payroll services.