With each new change to Canadian payroll legislation
, small businesses are tasked with implementing the alterations to ensure they remain compliant with all regulations. Companies in the northern nation are currently dealing with this type of situation, as taxes and government fees are set to increase in 2013. This means that additional wages will have to be taken out of workers' paychecks, a responsibility that is put upon the businesses that employ them. In addition, firms' contributions to certain programs on behalf of staff members will also rise. While these new payroll processes may seem daunting as companies implement them, bookkeeping procedures can be facilitated by using payroll software
to ensure that accurate deductions are made and firms are meeting all necessary compliance regulations.Payroll, income tax to rise According to CBC News
, Canadians are welcoming in the new year with more payroll deductions from their checks, as well as higher income taxes for several tax brackets. The news source states that both the Canada Pension Plan (CPP) and Employment Insurance (EI) rates have increased throughout the country for workers and companies. An employee who earns at least $47,400 will see a $51.50 annual rise in EI fees, from the $891.12 paid last year. For businesses, that amount will come to $1,247.57 per staff members, a $71.61 jump from 2012. The source notes that for CPP fees, Canadians making at least $51,100 will pay $49.50 more per year to the program, up from the $2,356.20 last year. Employers will also be contributing the same amount on behalf of each worker.
In British Columbia, CBC states that employees within the province are facing increased payroll health taxes. The amount taken out of paychecks each year for an individual earning $30,000 will jump to $66.50, up from 2012's $64. As the Vancouver Sun reports
, this is the fourth year in row that taxes have risen in British Columbia, and while the increases do not seem incredibly high, they are starting to take a toll on the province's residents.Maintain control with payroll software
To deal with these payroll tax and program fee changes, Canadian companies can use payroll technology
to effectively oversee all processes and deduct accurate amounts from employees' paychecks. These software programs give businesses the tools needed to maintain control over their payroll procedures to ensure all regulations are being followed and the correct amounts are being taken out.