T H E B E N E F I T S O F I N - H O U S E PAY R O L L P R O C E S S I N G 3
I
Retaining money in the organization
There are times when a company needs to keep payroll funds in the organization
longer than its payroll provider permits. According to the outsourced solution
you choose, payroll must be submitted 2-5 days in advance. This rigidity of
imposed payroll cycles interrupts your cash flow, and even when it doesn't,
it still requires forgoing interest.
Outsourced providers have a great reason for requiring an advanced payment
from your organization – it lines their pockets. Major outsourced providers make
hundreds of millions off of your employee's salaries. Profitable for them, yes,
but you miss out on earning interest income on your own money.
Whether it affects your cash flow or not, the result is the same. You end up
funnelling funds out at inconvenient times and losing interest while floating large
sums to corporations. There's no upside.
Year-end Processes
In-house Payroll processing gives organizations the flexibility to choose when
they want to process and review critical year-end documents, such as T4s and
CRA remittances. Internal teams typically double and triple-check to ensure
all tax-related data and information is accurate. Outsourcing tends to result
in rushed, error-ridden documents that require reconciliations down the line.
There's something to be said for doing it yourself. You're more invested in your
organization's success than an outsourced vendor.
How In-House Payroll Processing Makes For a Better
Year-End Experience:
• T4 Runs
With In-house payroll you can run T4s at any time, even off peak-season,
giving you ample time to confirm they are mistake-free before submission.
• Special Boxes
For organizations with a diverse workforce, tax slip special boxes serve an
important function. Going in-house gives you much more flexibility with
specialized requests.
• CRA Remittances
More time allows you to better manage your own remittances and deposits
resulting in fewer errors. With outsourced payroll, there is less time to
compare and balance remittances with other year-end forms like T4s.
T4A
RL-1
T4
T2200-S
T2200
"Wefinallyfeellikewe're
managing our payroll,
whereasouroldpayroll
systemfeltlikeitwas
managing us."
ERESHA FERNANDO, CFO
