Success Tips


Company Payroll, HR, & Tax Services for Small Businesses

Oct. 18, 2020

Choosing SME Company Payroll Services

It is not uncommon to find small and medium enterprises battling with their company payroll.

This is because it is extremely stressful for an entrepreneur to combine paying employees or filing taxes with other business roles.

Unlike large companies, some small business owners attempt to handle payroll activities and unfortunately overburden themselves with it.

It is also very possible to make mistakes when filing payroll taxes or handling company payroll which turns out to be very costly to your business.

What is A Company Payroll?

The company payroll refers to the financial list of salaries, bonuses, and overtime that the employees of a company are entitled to receive.

Payroll also refers to the compensation awarded to employees for their services at a company, including the deductions of their employees’ wages.

Payroll includes the past records of employee payments and also covers employee taxes.

This means that the employer is expected to deduct and pay the employees portion of income taxes.

It can be difficult to file payroll taxes especially if you run a business with multiple income variables.

This is why most business owners outsource their payroll.

What are Payroll Services?

company payroll service for small businesses in Canada

Payroll service is a company that handles all payroll functions for a fee.

The aim is to lighten the business owners’ burden by handling; wage calculations, and filing of payroll taxes.

When a business owner hires a payroll service company, documented information is presented to them.

It includes the list of all employees, the hours they worked, payment patterns, and other vital information.

The last role a business owner should be handling is payroll.

This is because it demands a high level of attention and keeping up with changing tax policies.

As much as you can have an in-house payroll service, the most affordable option especially for a small or medium scale business is to outsource your company payroll.

Is Payroll Similar to Human Resources?

These two subjects have very similar functions but there is a huge point of divergence.

While payroll deals with compensating employees, human resources majorly tilt towards employee management and relations.

Despite the fact that both payroll and human resources focus on employees, it would be overtasking for a business owner to allocate payroll duties to HR.

Essentially, human resources focus on;

  • Oversees employee recruitment selection process
  • Bridge management and employee relations
  • Measuring Employee Performance
  • Ensuring the application of employment law and HR policies within the company
  • Updating employee records

Payroll on the other hand focuses on;

  • Gathering records from employees and calculating the hours worked
  • Processing payroll calculations
  • Handling employee payment according to the company payroll system.
  • Resolving payment issues
  • Calculating deductions
  • Filing payroll taxes and paying employee income taxes.

How to Determine the Best Payroll System for your Business?

Best Company Payroll System for your Business

Your payroll system is developed depending on your company employee payment structure, payment method, and other factors.

Your business payment structure is determined by the nature of the job and what is most convenient for your business.

The existing payment structure is;

  1. Daily payroll is a payment structure in which the employees are paid on a day-to-day basis.
  2. Weekly payroll- Here, the employees get their salaries at the end of each week.
  3. A four-weekly payroll system is paid once every four weeks or 13 times per year. It is similar to the regular monthly payment structure.
  4. Bimonthly payrolls – Employees salaries are paid once every two months, or six times each year.
  5. Quarterly payroll – Salaries are paid to employees after every four months.
  6. Semiannually payroll- A few companies pay their employees twice every year.
  7. Annually payroll- This payment method is very scarce and employees are rewarded at the end of the year.

The most common payroll structure is the; weekly, four-weekly/monthly, and bimonthly.

Your company payroll may have certain outstanding features like;

  • Garnishment payments
  • Workers’ compensation
  • Unemployment insurance

You also have to determine the method of employee payment.

It could be through direct deposit which automatically transfers money or paper checks and payment cards.

All these factors need to be put into consideration before hiring a payroll administrator for your business.

Types of Company Payroll Services

Types of Company Payroll Services

1. In-House

 An in-house payroll service is tied to your business.

It demands that you recruit additional hands to handle payroll.

It is not the best option for small businesses to have an in-house payroll administrator because it can be more costly than outsourcing.

2. Online Payroll

There are some online software which takes care of payroll activities.

Depending on your preference and after making your research, you can pick the best and affordable software for your business.

3. Payroll Services

Some agencies are specialized in handling company payroll.

They collect the necessary information and ensure that matters pertaining to employee payments are resolved.

This includes the calculation, filing, and payment of payroll taxes.

4. Bookkeepers and CPA’s

Most SME’s outsource their payroll activities to bookkeepers and certified public accountants.

The reason is that a good accountant can effectively offer payroll services and can prepare and maintain error-free payroll taxes.

Benefits of Outsourcing Payroll

There are so many advantages to outsourcing your company payroll. Some of the outstanding benefits are;

1. It Saves Time

For startups, small and medium-sized business owners, overburdening yourself with payroll is a bad idea.

It demands a lot of your attention and this can distract you from other essential aspects of your business.

When you outsource your payroll, you end up having so much time at your disposal.

2. Saves you Money

Outsourcing payroll is very affordable once you find the right option. You get more time at a little cost.

3. Payroll is Done Without Mistakes

Payroll is an extremely sensitive job that requires lots of attention and expertise.

When done wrongly, it can be very costly to your business especially when related to payroll tax issues.

Getting a professional to handle payroll processing guarantees that the job is done properly.

4. Guaranteed Security

 Your company stands a chance of employee embezzlement when you have an insider in charge of payroll.

Unlike in-house payroll administrators that are within your organization, most payroll outsourcing agencies guarantee confidentiality.

This is because the information is not exposed to your employees and cannot be easily manipulated.

5. Peace of Mind

Once all these issues are sorted out by payroll services, a business owner can have peace of mind.

Do Accounting Agencies Offer Company Payroll Services?

A part of accounting duty involves payroll services.

As a matter of fact, the right individual to handle payroll processing and taxes is your accountant.

Any business owner who hires a full-service accountant does not need to worry about company payroll.

This is because the accountant sees to it that all financial-related activities are properly handled.

What Full Service Accounting Agency Is Suitable For My Small Business?

payroll liabilities for small businesses

KAFT CPA is a full-service accounting agency with professionals as well as guaranteed confidentiality.  

With a team of professional accountants, we can process your business payroll and sort out payroll taxes.

We save your time, money, and guarantee your business’s financial security.

Need an accountant who specializes in medical practices, oil and gas, small business and more?
Book your free 30-minute "Success Check" today.