At a Glance
Payroll is the process of the payment of employees by their employer.
The payroll process can include tracking of worked hours, calculating an employee's salary wage, and distributing money directly to staff accounts or issuing paycheques.
Payroll processing requires companies to account for and pay taxes deducted from an employee's income including personal income taxes, vacation pay, and unemployment insurance.
A Simplified Example of Business Payroll
Vancouver Dentists Inc. - November 2020 Payroll
Employees Paid: 3
What Payroll means for your business
Even as a starter working alone, your business wil most likely need to employ additional people down the road as operations begin to expand. Payroll helps you to pay your employees and keep track of tax deductions resulting from employment income. Things such as taxes are deducted during payroll processing and submitted to the CRA.
In a nutshell, understanding your payroll is the gateway to living a stress-free tax life in addition to paying your team efficiently.