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Managing payroll is a critical task for any business regardless the size, and choosing the right payroll software can make all the difference. But, for small businesses in Canada, finding the right payroll software is critical to ensuring compliance with tax regulations, streamlining processes, and paying employees accurately and on time. With various options available, choosing the right one can be challenging. This guide provides an in-depth look at five leading payroll software solutions: ADP, Ceridian Dayforce, Wagepoint, Payworks, and QuickBooks Payroll. We’ll evaluate their features, benefits, and considerations to help you make an informed decision. At the end of this article, we will also tell you which two are our favorite picks and why, so make sure to stick to the end.
ADP
ADP (Automatic Data Processing) is a global leader in payroll and HR solutions, offering a range of services designed to support businesses of all sizes. From basic payroll functions to advanced HR features, ADP provides scalable solutions that can grow alongside your business. It is particularly popular among small businesses due to its ease and number of comprehensive features designed to streamline payroll and compliance.
Features and Benefits
ADP’s platform excels in automating payroll calculations, deductions, and tax filings, ensuring compliance with Canadian tax laws. The system provides direct deposit, automated T4 and T4A generation, and remittance to the Canada Revenue Agency (CRA). Beyond payroll, ADP integrates with popular accounting software like QuickBooks and Xero, making it easy to manage financial records.
Small business owners appreciate ADP’s user-friendly dashboard and mobile app, which allow for seamless payroll processing on the go. The platform also offers employee self-service tools, enabling staff to access pay stubs, tax forms, and personal information without burdening HR.
Also, read: The Truth About DIY Bookkeeping: A Risky Choice For Your Business
Cons
While ADP’s comprehensive features are impressive, its pricing may be a concern for very small businesses. The cost structure can increase as you add more employees or services. Additionally, some users have reported a learning curve when first implementing the software.
Who is it for APD for?
ADP is ideal for small businesses looking for scalability and a trusted, all-in-one payroll solution. Its reputation for reliability makes it an excellent choice for companies anticipating growth.
Dayforce (Ceridian)
Ceridian Dayforce is a cloud-based payroll and HR software solution tailored to businesses that require advanced workforce management tools. It is particularly beneficial for small businesses with complex payroll needs.
Features and Benefits
Dayforce shines in handling complex payroll tasks, such as multi-province payrolls and intricate pay structures. It offers real-time payroll processing, ensuring accuracy by allowing changes and calculations to be made instantly. The software also integrates seamlessly with Ceridian’s HR and workforce management tools, giving businesses a comprehensive solution for employee scheduling, benefits administration, and compliance tracking.
Another standout feature is the software’s focus on compliance. Dayforce keeps up with Canadian payroll regulations, automatically updating for legislative changes. The reporting and analytics tools provide valuable insights, enabling businesses to optimize workforce efficiency.
Cons
Ceridian Dayforce may be more advanced than what some small businesses need, and its higher price point reflects its robust feature set. Additionally, the initial setup and training can be time-intensive, which may not suit businesses looking for quick deployment.
Who is it Ceridian for?
Dayforce is best suited for small businesses with complex payroll requirements or those planning to scale up rapidly. Its powerful features make it a worthwhile investment for businesses that need more than basic payroll functionality.
Wagepoint
Wagepoint is a Canadian-based payroll software designed specifically with small businesses in mind. It prioritizes simplicity and affordability, making it a favorite among entrepreneurs.
Features and Benefits
Wagepoint simplifies payroll by automating key processes such as calculating wages, taxes, and deductions. It handles direct deposit, year-end reporting, and CRA remittances with ease. One of its standout features is the user-friendly interface, which makes it accessible even to business owners with little payroll experience.
Wagepoint’s focus on customer service sets it apart. The platform offers comprehensive support and a library of resources tailored to Canadian small businesses. It also integrates with accounting tools like QuickBooks and Xero, streamlining bookkeeping processes.
Cons
While Wagepoint is an excellent choice for small businesses, it may not be ideal for larger companies or those with more complex payroll needs. The software’s feature set is straightforward, which might limit its appeal for businesses seeking advanced functionalities.
Who is Wagepoint for?
Wagepoint is perfect for small businesses that value simplicity, affordability, and reliable customer support. Its tailored features make payroll stress-free for entrepreneurs.
Payworks
Payworks is a Canadian payroll software designed to meet the unique needs of businesses operating in Canada. It combines payroll, HR, and time management into one cohesive platform.
Features and Benefits
Payworks specializes in providing localized solutions that ensure compliance with Canadian tax laws. Its payroll system automates calculations, CRA remittances, and year-end tax filings. The platform also integrates HR tools, including employee onboarding and performance management, making it a versatile solution.
One of Payworks’ strengths is its customer service, which focuses on building strong client relationships. With its in-depth understanding of Canadian regulations, the support team offers valuable guidance to businesses navigating payroll complexities.
Cons
Payworks’ pricing is not publicly listed, which can make it difficult for small businesses to evaluate upfront costs. Additionally, while its features are robust, they may not be as user-friendly as some competitors, requiring more time to learn.
Who is Paywork for?
Payworks is an excellent choice for Canadian businesses that prioritize compliance and value customer support. It’s particularly beneficial for companies looking for a localized and comprehensive payroll solution.
Also, read: Why is Bookkeeping Important for Small Businesses
QuickBooks Payroll
QuickBooks Payroll is an extension of the widely-used QuickBooks accounting software, offering small businesses a convenient way to manage payroll alongside their financials.
Features and Benefits
QuickBooks Payroll integrates seamlessly with QuickBooks Online, allowing businesses to sync payroll data with their accounting records. The software automates payroll calculations, direct deposits, and tax filings, ensuring compliance with Canadian regulations. Its customizable reports provide insights into payroll expenses, helping business owners make informed financial decisions.
One of QuickBooks Payroll’s standout features is its flexibility. Businesses can choose from multiple plans, each offering different levels of support and automation. The software also provides a mobile app, enabling payroll management on the go.
Cons
While QuickBooks Payroll is a powerful tool, it may not be the best standalone solution for businesses not already using QuickBooks for accounting. The software’s pricing can also become expensive as businesses grow or require more advanced features.
Who is QuickBooks Payroll for?
QuickBooks Payroll is ideal for small businesses already using QuickBooks Online. Its seamless integration and robust features make it a natural choice for managing both payroll and accounting in one place.
Our picks: Wagepoint and ADP
At Great Start Bookkeeping we work exclusively with Wagepoint and ADP, our favorite top picks for small businesses in Canada. Wagepoint’s simplicity, affordability, and focus on customer support make it an excellent choice for small businesses seeking an easy-to-use payroll solution. On the other hand, ADP’s comprehensive features, scalability, and reputation for reliability make it ideal for businesses anticipating growth or requiring advanced functionalities.
Conclusion
At the end of the day, the payroll software you choose should help you make an otherwise time-consuming and complicated process, more efficient and cost-effective. It should also help you stay compliant and avoid fines and penalties from the CRA.
So no matter your choice, investing in the right payroll software is a crucial step toward streamlining your operations, staying compliant, and ensuring employee satisfaction. If you need further assistance with payroll or bookkeeping, feel free to reach out to us. We will listen to your story and design bookkeeping or payroll solutions that meet your specific business needs.
Payroll FAQs
Do I need to set up a payroll account with the CRA?
Yes. As an employer, you have to register for a payroll program account before your first remittance date. This account identifies your business to the CRA and is assigned to employers, trustees or other entities that pay employees.
To register, visit the CRA website and fill out the required details under “Payroll”. You’ll then receive a 15-digit payroll account number that’s unique to your business.
When are the remittance dates for payroll tax deductions?
Payroll remittance dates for tax deductions usually fall on the 15th day of the month after employees are paid. The frequency at which you must report will vary based on your average monthly withholding amount (AMWA), as well as the remittance threshold for your source deductions. For example, a Regular Remitter (less than $25,000) must report on or before the 15th day of each month. While a Quarterly Remitter (less than $1,000 and less than $3,000) must report quarterly by April 15, July 15, October 15, and January 15.
Do I need to make payroll deductions?
Yes, if you qualify as a trustee, employer or payer of other employment amounts, you must register for a payroll program account and follow any federal or provincial/territorial requirements you’re assigned, including tax or income deductions. Once again, you can visit the CRA website for more information.
How do I set up a payroll account with the CRA?
To set up payroll with the CRA, you are required to set up a CRA payroll deductions program account. If you’re already signed up for another CRA program account and have a business number (BN), you can simply add a payroll deductions account to your existing account. However, if you haven’t signed up for a business number (BN), you’ll need to register for one to open a payroll account. You can register online for a business number, over the phone (1-800-959-5525), or via the mail by mailing Form RC1, Request for a Business Number to a tax service office (TSO) or tax centre (TC).
