NC) Business growth can be both gratifying and gruelling. From first sale to first hire, each change comes with a new challenge, and for many small businesses without a dedicated payroll person, each step can bring new struggles.
If neglected, payroll concerns can significantly affect overall business health and performance. To help, the National Payroll Institute has released an e-book which includes practical tips to overcome common business growing pains.
Several important factors it highlights include:
Creating (and maintaining) a healthy record
Regular record keeping is crucial to ensure workers are paid accurately and on time. While this may not seem complicated, it requires strict attention to detail and consistent collection of accurate employee data. To ensure personal information is handled with care and confidentiality, employers must abide by federal, provincial, territorial and ministerial laws surrounding the collection and storage of such data.
Preparing for a payroll audit
Payroll audits are random inspections by a third party to confirm business compliance with payroll administration, accounts payable and receivable, and the recording of taxable benefits. Each year, the government doles out tens of millions of dollars in penalties on businesses after payroll audits, meaning there’s no time like the present to ensure your business is prepared. Don’t fret, audits never happen out of the blue. You will always receive written notice from the government, and if the proposed time conflicts with other activities, you can request to reschedule it.
Making a plan for improvement
Following an audit, a business is given a written recommendation report that indicates if they are compliant, if money is owed or if penalties are being applied. If a business is found to be non-compliant, it will be given time to fix the problem and restore business health.
To learn more about how to maintain payroll records and prepare your business for a payroll audit, download the new e-book at payroll.ca/payrollcheckup.