Is your Canadian staffing agency at risk?

For any staffing firm owner inexperienced with payroll management, there are certainly a number of potential mishaps that can occur and lead to legal issues.

As the owner and leader of such a business, you have a responsibility to familiarize yourself with numerous employment laws that must never be violated by you or your staff – but the fact is, these ever-changing laws can be a challenge to regularly keep up with and follow to a T to no fault.

Common payroll errors can cost your agency some hefty fees, and even land your firm in hot water. It’s just not worth the risk. But thankfully, there are professionals you can outsource your payroll responsibilities to that will help ensure all payments, record-keeping, employee classifications, etc. are dealt with appropriately… so you don’t need to worry about running into issues with the law.

Below, let’s explore some of these payroll error risks commonly made by staffing firm owners who don’t outsource to the experts.

Have you made payment miscalculations, or missed a deadline?

The miscalculation of pay, or misunderstanding the standard laws for fair worker compensation is another common error to occur for growing businesses. Miscalculation of overtime pay that is not only unfair to your employee, but will put your company is harm’s way with the law (and financially) once the issue surfaces.

There is also the regrettable event of missing important payroll and tax deadlines – things that are easy to do if you’re not constantly paying close attention. Not paying these fees on time results in hefty fines that could have well been avoided, and sends red flags to the government about your agency. Payroll experts who stay up-to-date about all the laws and regulations will help keep your employees appropriately compensated and happy, and your recruitment business safe.

Have you been keeping accurate records, and creating detailed contracts?

Mishandling important payroll records can also result in legal trouble, so it’s critical for a staffing agency to keep accurate data records; including the documentation of paper checks and saving of all payroll documents (tax forms, pay stubs, etc.).

It’s also important to ensure that your contracts contain the correct wording required to clearly state the rules, regulations and expectations that serve to protect you, your staff and your agency from legal risks. Every detail should be covered in order to avoid potentially messy disagreements later on – but it isn’t difficult to forget to include a detail or two. Fortunately, outsourcing payroll duties helps you ensure that all paperwork, remittances and legal obligations are handled correctly and professionally, so your agency and team stays protected.

Have you been misclassifying employees?

The employees of your staffing agency should be classified as either full time or part time, depending on the number of hours they contribute to your business – however, employees do often get misclassified as independent contractors. This is a major problem because independent contractors do not have access to the most fundamental labor legislations including minimum wage and overtime pay, workers compensation and unemployment insurance. These employees are also responsible for paying all payroll-related and government taxes that, if not paid, can lead to significant penalties and charges – so you can be sure that one tiny mistake of misclassification poses a great risk to your employee and agency as a whole. Outsourcing payroll and back office support ensures all workers are accurately classified.

Outsourcing payroll to the professionals will help you stay protected.

Putting yourself, your workers and your staffing agency at risk for legal problems simply isn’t worth it. Outsourced payroll and back office solution services will protect your staffing firm from the potential legal turmoil and fines that can cost you your growing business that you’ve already put so much time, money and effort into starting up.