how to minimize risks - nethris payroll services

Payroll Management:How to Minimize Risks

Pierre St-Arnault, Product Manager

Twitter: @pstarnault #FUNDICAROADSHOW #NETHRIS

Starting a business …

BOUTIQUE

You hire your first employee …

+BUT WAIT…

Employees vs ContractorsWhich Option is Right for My Business?

1. The salaried employee can contact the Employment Standards Commission if he feels he is subjected to unfair conditions. The contractual can’t.

2. The salaried employee represents a fiscal burden for the employer. Not the contractual.

3. The salaried employee has a loyalty responsibility to his employer, established by law. Not the contractual.

4. The contractual employee is considered as an independent self-employed entrepreneur. Not the salaried.

5. Because of his status, the contractual or self-employed employee benefits from different tax treatment.

Some general concepts…

Employees vs ContractorsEstablishing the status

• Control• Tools and equipment• Subcontracting work or hiring assistants• Financial risk• Responsibility for investment and management• Opportunity for profit

Factors to consider

So finally,you hire your first employee …

+

The troubles begin …

Payroll managementdoes not end oncethe cheques are signed …

GOVERNMENT REMITTANCES

BONUSWCB PAYMENTS

VRSPSEVERANCE PAY

STATUTORY HOLIDAYSVACATION PAY

RECORDS OF EMPLOYMENTRETIREMENT ALLOWANCES

SUPPORT PAYMENTS

DEDUCTIONS AT SOURCE

CHEQUE PRINTINGTAX SLIPS

YEAR-END PERIOD

TAXABLE BENEFITS TIPSGOVERNMENT REQUIREMENTS

CANADA REVENUE AGENCY

DATA ARCHIVING

TAX FREE SAVINGS ACCOUNT

Compliance

Don’t play with fire!

There are 190 regulatory requirements.

Including employment standards andtax tables and those fun calculation formulas ...

An employee leaves …

The employeris responsiblefor the recordof employment

GOVERNMENT REMITTANCES

BONUSWCB PAYMENTS

VRSPSEVERANCE PAY

STATUTORY HOLIDAYSVACATION PAY

RECORDS OF EMPLOYMENTRETIREMENT ALLOWANCES

SUPPORT PAYMENTS

DEDUCTIONS AT SOURCE

CHEQUE PRINTINGTAX SLIPS

YEAR-END PERIOD

TAXABLE BENEFITS TIPSGOVERNMENT REQUIREMENTS

CANADA REVENUE AGENCY

DATA ARCHIVING

TAX FREE SAVINGS ACCOUNT

Is payroll really yourfield of expertise?

Privacy

The employer is responsible for protecting their employees’ personal information

Personal Information Protection and Electronic Documents Act

(PIPEDA)

Identity theftAccess management

Business risks

Does your recovery plan include

payroll management?

PAYROLL

Your data Your resourcesYour equipment

Financial risks

A simple late payment can cause many problems …

Failure to deduct …• 10% of the amount you did not deduct• 20% on the second failure

Compliance Privacy Business risks Financial risks

Summary …

Satisfaction

Accurate and timely payroll is invaluable for employee loyalty

Is payroll really yourfield of expertise?

What are your options?

A spreadsheet? Your accountant?

Accounting software?

Do you have another option?

What aboutPayroll Outsourcing?

Save Time(Better focus on your core business)1

TOP 5 REASONSYOU SHOULD OUTSOURCE PAYROLL

Payroll Entry GL Journal Entry Time Banks Looking for Legal Information0

2

4

6

8

10

12

Payroll Processing – Time Consuming Tasks

Source: Echo Sondage 2013

Reduce Costs(Time saved is money saved)2

TOP 5 REASONSYOU SHOULD OUTSOURCE PAYROLL

Get Access to Expertise(Payroll management is complex)3

TOP 5 REASONSYOU SHOULD OUTSOURCE PAYROLL

End-of-Year Looking for Legal Information Time Banks Records of Employment0

2

4

6

8

10

12

14

16

18

Payroll Processing – Most Complex Tasks

Source: Echo Sondage 2013

Reduce Risks(Avoid headaches)4

TOP 5 REASONSYOU SHOULD OUTSOURCE PAYROLL

Worry-Free(You are not alone)5

TOP 5 REASONSYOU SHOULD OUTSOURCE PAYROLL

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 © 2009 – 2016 CGI PAYROLL SERVICES CENTRE INC. CGI PAYROLL SERVICES CENTRE INC. IS THE SOLE SUPPLIER OF PAYROLL PROCESSING SOLUTIONS AND SERVICES MARKETED UNDER THE BRAND NAME NETHRISOF WHICH THE NATIONAL BANK OF CANADA ACTS SOLELY AS DISTRIBUTOR. NETHRIS IS A REGISTERED TRADEMARK OF CGI PAYROLL SERVICES CENTRE INC.