CFO services | avoiding common payroll errors
If business owners are able to avoid common payroll errors in hiring in their business, they can avoid being financially crushed by retroactive payroll remittances, including interest as well as penalties when there contractors get deemed employees by CRA says CFO services. This is the most common payroll problems as well as the most devastating they will problem in business. The reason why this is so devastating, is that if businesses are found guilty, they will have to pay all of the source factions that have been owed plus interest plus penalties for every single employee for as long as theyíve been employed. For such a huge risk, there is such an easy solution says CFO service.
The recommendation by CFO service as for any businesses who have hired independent contractors in their business, is to ensure that those independent contractors are incorporated. By ensuring that all of their independent contractors that they hire our incorporated, business owners can completely eliminate the risk of those contractors who would be considered their employees by CRA. Thatís the only way to 100% eliminate that risk. When they hire employees, I have to make sure is that those employers are getting source deductions taken of their check. With completely avoidable situation, itís frustrating that businesses are still getting audited and being assessed for devastating amounts.
Often business owners get lulled into a both sense of security by believing that since they have never been caught, they wonít be caught. Unfortunately this is not the case, CRA will usually find out eventually, and the longer it takes them to figure out, the higher those penalties are going to be says CFO services. There is no reason that businesses should carry this risk at all without easily applicable it is.
CFO services recommends businesses fix any discrepancies in their business immediately. The way that they can do this simply and easily is by switching contractors who need to be considered employees and their payroll have source deductions taken off the check. If a business owner makes exchange along with a payroll increase, most employees are going to have a problem being more taxes when they get a raise. If there are businesses that wish to continue having the contractors be considered contractors, they can also offer them a raise if they incorporate. With such an easy fix at the banker tips, and how but will this problem is there is no reason why business owners should be assessed such a massive amount that may cripple their business entirely.
Business owners who are hiring employees and contractors can easily avoid any problems by using hiring practices such as only hiring contractors have their own corporations avoid running into problems with CRA says CFO service as well as eliminating any risk they currently hold by switching any contractors to employees for ensuring that those contractors become incorporated. Such an easy fix, can mean world of difference to a business if they are hit with a payroll audit.
Out of all the problems that businesses face in business today, payroll audits should not be one of them says CFO services. Business owners seek professional help from their accountants after they have either been crushed or are about to be crushed financially by being forced to pay retroactive payroll remittances, interest and penalties once there contractors have been deemed employees by a payroll audit from CRA.
Aside from this problem being completely crippling to a business, is also completely avoidable says CFO service unfortunately the problem with several businesses who are currently at risk, is that they have been lulled into a false sense of security that since they have not been caught, itís not a problem. That is a frustrating and false assumption. The longer a business owner avoids fixing this problem, the higher degree of probability that not only will CRA audit them, but the longer it takes, the higher their assessment will be and the more they are going to have to pay back. This problem is so avoidable that thereís no reason why businesses shouldnít just fix this error.
Business owners also often believe that they are charismatic enough to be able to convince CRA to rule the way the business owner wants them to rule, but thatís rarely the case. Payroll auditors sole job says CFO services is to be completely judicious at who is deemed a contractor because thatís how CRA collects their taxes. When a business owner gets audited, the auditor will do their own research, gather information, and do so without much emotion. That is their entire job day in and day out and are less likely to take pity on any business owner with a sob story. Once they have made their determination based on facts and questions, they will mail their assessment to the business owner and never have to see them face-to-face again. The business owner will then be forced to pay the assessment regardless of how much it is, And without an opportunity of an appeal.
The amount that they will get assessed, will determine how many contractors are deemed employees, and how long they have been employed by the company. The business owner will have to pay retroactively every single source deduction that was ever missed per employee plus interest plus penalties. This can be as high as hundreds of thousands of dollars not only can this damage business, it can completely force it to close.
With such a high risk for absolutely no reason in their business, most business owners should work to eliminate the problem if they have any contractors who are not incorporated. It is an extremely easy fix that they can simply ask those contractors to become incorporated, and eliminate the risk. If they would like to bring on those contractors as employees, all they have to do is ensure that source deductions start coming off their check immediately. Without easy the sexes, and how high the risk is CFO services they all businesses should avoid this extremely risky move.