Why Are Quotes Great Sources of Inspiration?

Quotes serve as powerful sources of inspiration for small business owners, encapsulating essential wisdom in concise phrases. Motivational quotes often emphasize resilience and perseverance, highlighting that the road to success is a journey, not an overnight achievement. Small business owners find guidance in these quotes, understanding that real success stems from continuous learning, adaptability, and providing exceptional customer service.

Favorite quotes often resonate because they speak to the challenges and triumphs of entrepreneurship. Motivational quotes also underscore that the absence of fear is not a requisite for success; rather, it's the ability to navigate challenges, make tough decisions, and view failure as a stepping stone to achievement. In the world of entrepreneurship, quotes become valuable business assets, instilling confidence and reinforcing the notion that average people can achieve extraordinary feats with determination and the right mindset.

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Top 20 Best Quotes for Small Business Owners

Below we have collated some of the most inspirational business quotes, featuring insights from successful people. These business quotes reveal the secret of success, lessons of failure, and motivational advice to entrepreneurs. Discover the wisdom that encapsulates the essential keys to navigating the challenging yet rewarding world of small business.

Success and Achievement

1. "The only way to do great work is to love what you do." - Steve Jobs

Steve Jobs emphasizes that genuine passion is the driving force behind exceptional work. When individuals love their work, it ceases to be a mere job; it transforms into a fulfilling journey. This passion fuels creativity, resilience, and a commitment to excellence, ultimately leading to great accomplishments.

2. “I learned to always take on things I’d never done before. Growth and comfort do not coexist.” - Virginia Romerty

Virginia Romerty is proving that in order to succeed, taking risks is essential. Remaining in your comfort zone will not allow you to reach your full potential, but will instead limit you, which is why you need to constantly reassess your approach. This ensures that you recognize the areas in which you can step out of your comfort zone and improve your business. It's all about resilience and the determination to overcome challenges, which is why Rise People facilitates regular performance check-ins, allowing employees to understand their successes and failures and facilitate growth. 

3. "Success usually comes to those who are too busy to be looking for it." - Henry David Thoreau

Thoreau's quote underscores the importance of focus and dedication. Success is often a byproduct of passionate and dedicated effort rather than a direct pursuit. By immersing oneself in meaningful work and being fully engaged, one is more likely to achieve success organically.

4. "The only place where success comes before work is in the dictionary." - Many 

Whether this quote originated with Mark Twain, Vince Lombardi, or Vidal Sasson is highly debated but the words highlight the necessity of hard work on the path to success. Success is not handed out freely; it is earned through persistent effort, dedication, and a commitment to excellence. This quote serves as a reminder that diligence and perseverance are indispensable in any successful endeavor.

5. "The biggest risk is not taking any risk. In a world that's changing really quickly, the only strategy that is guaranteed to fail is not taking risks." - Mark Zuckerberg

Mark Zuckerberg's quote encapsulates the essence of entrepreneurial success. In the fast-paced and evolving landscape of business, playing it safe can be the riskiest approach. Zuckerberg encourages entrepreneurs to embrace calculated risks and ignore the fear of failure, as innovation and growth often arise from venturing into the unknown. The failure to take risks, he asserts, is the surest way to stagnate and fall behind in a rapidly changing world.

Entrepreneurship and Business Ventures

6. "Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work." - Steve Jobs

Steve Jobs emphasizes the intertwining of life satisfaction and doing meaningful work. For entrepreneurs, success is not just about financial gains but also finding fulfillment in their work. Identifying and pursuing what one believes to be great work ensures a more rewarding and satisfying entrepreneurial journey.

7. "The best way to predict the future is to create it." - Peter Drucker

Peter Drucker's quote empowers entrepreneurs to take control of their destiny. Instead of passively waiting for the future to unfold, entrepreneurs should actively shape it through strategic planning, innovation, and bold decision-making. It reflects the proactive nature required for entrepreneurial success. This forward-thinking approach is reflected in Rise People's goal setting feature, which encourages employees to work towards their aspirations. 

8. “To love what you do and feel like it matters – how could anything be more fun?” - Katherine Graham

The first step to succeeding as a small business is to love what you do. Katherine Graham suggests that when you genuinely enjoy what you do, success is bound to follow. There is no point in starting a venture in something you are not passionate about. Passion facilitates dedication, and dedication breeds success. The best part is that loving what you do makes your job more fun!

9. "The most valuable thing you can make is a mistake – you can't learn anything from being perfect." - Adam Osborne

Adam Osborne's quote reframes the perception of mistakes as valuable learning opportunities. Entrepreneurs often face setbacks, but it is through these mistakes that they gain insights, resilience, and the wisdom needed to navigate the challenges of business. Imperfections contribute to the growth and success of entrepreneurs.

10. "Your most unhappy customers are your greatest source of learning." - Bill Gates

Bill Gates emphasizes the significance of customer feedback, even when it's negative. Unhappy customer influences provide invaluable insights into areas that need improvement. Addressing their concerns not only enhances the business but also fosters customer loyalty and improves your tremendous service to customers. This quote highlights the importance of using criticism as a tool for growth.

Motivation and Inspiration

11. "The way to get started is to quit talking and begin doing." - Walt Disney

Walt Disney's quote is a call to action, emphasizing that the first step toward success is taking tangible, decisive action. Instead of merely discussing plans, the minimum requirement for success is achieved by initiating and executing ideas. This quote motivates individuals to overcome procrastination and embark on their entrepreneurial journey. At Rise People, we want to make it as easy as possible for entrepreneurs to take the next step and start their new journey, which is why we offer seamless hiring and onboarding services.

12. "Don't be afraid to give up the good to go for the great." - John D. Rockefeller

John D. Rockefeller's wisdom encourages entrepreneurs to aim for greatness by letting go of the merely good. Success often requires leaving comfort zones and making bold decisions. This quote inspires individuals to pursue higher aspirations and embrace the challenges that come with reaching for greatness.

13. “Find a great mentor, someone who has already been through the many challenges of being an entrepreneur” - Jodi Levine

Jodi Levine is highlighting the importance of seeking inspiration by those who have similar aspirations to yourself. By looking at someone who has been where you have been, you can learn from their successes and failures. This will allow you to create a personalized set of goals that are influenced by their journey, but ultimately reflect yours. The entrepreneurs before you should be your greatest source of inspiration. 

14. "Success is not in what you have, but who you are." - Bo Bennett

Bo Bennett's quote shifts the focus from material wealth to personal development. True success is not solely measured by possessions but by one's character, values, and personal growth. It inspires entrepreneurs to prioritize self-improvement and ethical conduct as integral components of their success journey.

15. “A small business is an amazing way to serve and leave an impact on the world you live in” - Nicole Snow

Instead of seeking inspiration in people, seek inspiration on the possible effect you can have on the world. Nicole Snow recognizes the importance that businesses of all sizes can have on the world, which should motivate entrepreneurs to believe in their vision. If you have faith in your vision, that is all you need to succeed. 

Leadership and Vision

16. "Coming together is a beginning; keeping together is progress; working together is success." - Henry Ford

Henry Ford's quote encapsulates a profound insight into effective leadership. Ford emphasizes the evolutionary stages of a successful team. The initial act of assembling individuals marks the beginning of a collective effort. Progress, however, relies on the ability to maintain cohesion and unity within the team. True leadership, as Ford suggests, is realized when team members collaborate harmoniously towards a common goal.

17. "The function of leadership is to produce more leaders, not more followers." - Ralph Nader

Ralph Nader's perspective challenges traditional notions of leadership. True leadership is not about amassing followers but empowering others to become leaders themselves. This quote underscores the importance of mentorship, guidance, and creating a legacy of capable individuals within a small business.

18. “Earn your leadership every day.”- Michael Jordan

This quote from Michael Jordan underscores the idea that leadership is not a one-time achievement but an ongoing process. It emphasizes the need for leaders to continually demonstrate their worthiness and effectiveness through consistent actions and behaviors. Jordan's quote suggests that leadership is not just about holding a title or position; it requires constant effort, dedication, and a commitment to leading by example.

19. When you need to innovate, collaborate” - Marissa Mayer

Marissa Mayer’s quote highlights the importance of collaboration. To succeed, you cannot work in solitude as your mind can only take you so far. By taking on a leadership role and employing other like-minded people to help you, you can get much more done and will be exposed to ideas and innovations that you would never have thought of yourself, allowing you to further your business in a multitude of ways. 

20. "Try not to become a man of success, but rather try to become a man of value." - Albert Einstein

In this quote, theoretical physicist Einstein emphasizes the importance of focusing on personal and moral qualities over mere success. Leadership is not solely about achieving success in terms of titles, wealth, or recognition. Instead, Einstein suggests that true leadership should be grounded in values, ethics, and the positive impact a leader has on others. Leaders who prioritize being people of value tend to create a more sustainable and meaningful impact on their teams and organizations.

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How Can You Learn From Other Business Owners?

Learning from other business owners, whether successful or struggling, is key to understanding the diverse pathways to success. Studying successful people offers insights into effective strategies and decision-making while analyzing poor business outcomes helps identify pitfalls to avoid. Engaging with business executives and ordinary people alike provides a well-rounded perspective, enriching one's knowledge and contributing to the key to success in the dynamic world of entrepreneurship.

Here are some key examples of other successful business owners you can learn from: 

• Adaptability from Richard Branson: Richard Branson, founder of the Virgin Group, is known for his ability to adapt and diversify his business ventures. Small business owners can learn from Branson's willingness to take risks, pivot when necessary, and embrace change to stay relevant in a dynamic market.
• Customer-Centric Approach from Jeff Bezos: Jeff Bezos, the Amazon founder built his empire by prioritizing customer satisfaction. Small business owners should recognize the importance of understanding and meeting customer needs, as satisfied customers often become loyal patrons and advocates for the brand.
• Innovation from Elon Musk: Elon Musk, known for founding companies like Tesla and SpaceX, is a symbol of innovation. Small business owners can draw inspiration from Musk's relentless pursuit of groundbreaking ideas and solutions. Embracing innovation can lead to a competitive edge and sustained success.
• Resilience from Oprah Winfrey: Oprah Winfrey's journey from adversity to success is a testament to resilience. Small business owners should adopt a similar mindset, understanding that setbacks are inevitable but can be overcome with determination and a positive outlook.
• Team Building from Steve Wozniak and Steve Jobs: The dynamic partnership between Steve Wozniak and Steve Jobs at Apple exemplifies the power of effective teamwork. Small business owners should prioritize building a strong and cohesive team, as collaboration and diverse skill sets contribute to overall success.

Grow Your Small Business with Rise People

Rise People's people management platform stands as a catalyst for business growth by seamlessly addressing various aspects of workforce management. With robust features like streamlined HR processes, automated payroll, and efficient time tracking, Rise People liberates business leaders to focus on strategic initiatives rather than administrative burdens.

The platform's user-friendly interface ensures accessibility for all, fostering a collaborative work environment. By centralizing employee data and enabling data-driven decision-making, Rise People empowers businesses to optimize their human resources effectively. This holistic approach to people management not only enhances operational efficiency but also contributes to employee satisfaction and retention, creating a solid foundation for sustained business growth!

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It’s that time of year again for those involved in the payroll process. While everyone is getting ready for the holidays, you’re getting prepared for the CRA’s deadline for T4s on the last day of February.

The T4 slip is a document that lists how much an employee was paid and how much money was withheld on their behalf and remitted to the CRA.

The T4 slip simultaneously allows an employee to complete their tax return and allows the CRA to know how much money they received (and should have paid). In short, it offers a neat summary of the employee’s life at the company for the year, and makes sure that both the employee and the CRA are on the same page for when it comes to tax filing time.

What gets noted on a T4 slip?

In general, most taxable income, benefits, allowances, deductions, and pension plan contributions are all included, each placed in a neat little box for the CRA’s computers to analyze.

Do I have to issue T4s for all of my employees?

Typically all employees require a T4 slip. However, there are a few rare cases where you don’t have to issue a T4 on your employees’ behalfs. The rules state that if you pay an employee any amounts that are CPP/ QPP eligible or EI eligible, you are required to process a T4 slip on the employee’s behalf. If you have an employee or employees that do not have any pensionable or insurable earnings, you are only required to process in instances where they are paid over $500 in the year.

There are a few instances where you’d need to issue a T4 or T4A even if you didn’t pay the employee a penny. If you provide current employees with taxable group term life insurance benefits, you must issue a T4. If you provide this to former or retired employees, you must issue a T4A. And if you provide any current, former, or non-resident employee with security options, you must issue a T4.

What is the timeframe for the income reported on a T4 slip?

The income you report on a T4 slip is income for the year during which it was paid, and not for when the services were performed or rendered. So, if an employee works in late December and the payment is made in early January, that income needs to be reported on the T4 for the subsequent year. This is especially important to remember because if you need to make any pay corrections, it is best to make them before the start of the next year. Your deadline is quite literally a minute before New Year’s Day. So, if there are bonuses owing, make sure they get paid out in December!

If you're a Rise client, download our guide to completing T4s within Rise.

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In May of 2023, the BC government passed legislation that requires all employers in British Columbia to disclose salary information in all public job postings as of November 1, 2023. The legislation also requires organizations to complete and post pay transparency reports, with larger public service and crown corporations required to share reports starting November 2023 and other companies required to comply within a specific (longer) timeframe as set out by the government.

The legislation is in part an effort to close the gender pay gap. According to the latest reports, in 2022 women in British Columbia earned 17% less than their male counterparts. This discrepancy is worse for racialized groups, with men making an average of $35.50 an hour and women on average $29.53 per hour; immigrant women earn an average of $28.78 per hour; other visible minority women earn an average of $27.44 per hour; and Indigenous women earn an average of $26.74 per hour.

The BC pay transparency legislation is a step towards ensuring that all employees are paid fairly for their work.

The Government of British Columbia explains that “all people deserve to be paid fairly and our communities are stronger when everyone is treated equally”. The Pay Transparency Act—which is what the BC pay transparency legislation is officially called—is one of many efforts by the government of British Columbia to close the pay gap.

Some of the other recent initiatives by the BC government include:

• Investing in better and more affordable childcare so parents aren’t forced to choose between their families and their career. Not only does this increase the number of women that enter and remain in the workforce by as much as 17%, but according to research, universal childcare can also increase lifetime earnings.
• More investment into housing and support for victims of domestic violence.
• Raising the minimum wage—60% of minimum wage earners are women.
• Raising liquor server wages to the minimum wage for that industry—80% of those earners are women.
• Supporting women in skilled trades with enhanced employment and skills training so women may enter more technical, higher pay occupations.

The BC pay transparency legislation has other goals beyond its aims to close the pay gap.

The new legislation will also impact pay history and pay secrecy. As listed on the Government of BC’s website, “effective immediately, employers in BC can no longer ask job applicants about what they have been paid at positions with other employers”. However, employers can still continue to use the pay information they currently have to inform salary decisions, as well as use readily available salary information for similar positions.

Additionally, also effective immediately, BC employers are no longer able to dismiss, suspend, or otherwise discipline or harass employees who ask about their pay, reveal their pay to other employees or applicants, ask about their pay transparency report, or submit information to the Director of Pay Transparency regarding their employer.

Pay transparency reports will be rolling out for organizations over the next three years.

As previously mentioned, along with including salary ranges in all publicly listed job postings, organizations will also have to begin creating pay transparency reports. The reports are due by organization size, with the first required for submission on November 1, 2023.

The schedule is as follows:

• By November 1, 2023, the BC government and the six largest Crown corporations (BC Hydro, BC Housing, BC Lottery Corp., BC Transit, ICBC, and WorkSafeBC) will be required to post annual pay transparency reports.
• By November 1, 2024, all employers with 1,000+ employees will be required to post annual pay transparency reports.
• By November 1, 2025, all employers with 300+ employees will be required to post annual pay transparency reports.
• By November 1, 2026, all employers with 50+ employees will be required to post annual pay transparency reports.

More information on what is required in the reports will be available in the fall together with an online tool to support organizations as they create their reports. The pay transparency reports will focus predominantly on gender breakdowns in the workplace in relation to pay.

For more information, visit the Government of BC’s website: https://www2.gov.bc.ca/gov/content/gender-equity/pay-transparency-laws-in-bc

The post BC pay transparency legislation and how it’s helping to close the wage gap appeared first on Rise.

Our clients often share that, before switching to Rise, they did everything everywhere: tracking payroll in one place, using Excel to count vacation days for employees, relying on email for recruiting, and so on… not to mention having to remember individual logins for each application. 

It’s the double-edged sword of the digital age. Organizations can find a solution for everything, but not a solution that does everything. Rise is a truly all-in-one people management solution—and now even more so with our new integration with Xero. 

With the Xero integration, small business owners as well as financial professionals such as accountants and bookkeepers are able to effortlessly map journal entry items to their account and sync payroll data from Rise to Xero easily. For clear insights into operational expenses, you can map whole organizations, departments, or individual employees. Enjoy extra peace of mind with automatic built-in checks for report balances before syncing with Xero.

Many platforms that claim to be all-in-one payroll solutions still require manual data entry. 

Having to export information from one system to another or manually re-enter data is not only time consuming but also introduces the risk of errors. When it comes to paying your people accurately and on time, you quite literally can’t afford to make mistakes. Studies have shown that employees have little tolerance for errors when it comes to their pay cheques, with 49% of workers reporting that they will begin looking for a new job after just two mistakes. 

All-in-one payroll solutions make running payroll much more seamless, reducing errors, automating compliance, and minimizing manual data entry. 

The Rise and Xero integration gives accountants, bookkeepers, and small business owners the ability to:

• Skip multiple logins and review all clients from one single dashboard 
• Generate and download standard or custom reports at any time
• Connect with our Canadian-based support team by phone, email, or live chat
• Sync all payroll data to Xero easily
• Save hours of work by reviewing all bookings and invoicing clients from one place 

Learn more about the Rise and Xero integration.

The post How integrated payroll solutions are critical to the success of Canadian accountants, bookkeepers, and small businesses appeared first on Rise.

With COVID eliminating much of discretionary spending—such as commuting, and other entertainment expenses like eating out and going to the movies—research by the Canadian Payroll association actually found that in 2021 “53 per cent [of people] been able to put away more [money] than a year ago and fewer (36%) are living paycheque-to-paycheque than at any time in the past 13 years”.

Despite this improved financial picture, employed Canadians are now faced with increased expenses as things “return to normal”. The several years of decreased spending may have actually had little impact on overall financial wellness, with Statistics Canada findings showing that household savings are decreasing as spending increases and consumption is outpacing disposable income.

Of course, this financial stress does not exist in a bubble. Studies show that “financially stressed employees are 5 times more likely to be distracted at work and 46% spend 3 hours or more a week dealing with financial issues”. 

Payroll can be the solution.

Companies can be leaders in addressing financial complacency by urging employees to take initiative and control of their own finances. This can be accomplished by leveraging payroll systems to empower employees to improve their financial health and wellness.

Rise Wealth, powered by OneVest, empowers employees to reach their savings goals with a fully automated, digital investing experience. Even if employees are struggling with their saving-to-spending ratio, they can still invest in their future with as little as $1. Each investment portfolio can also be tailored to the individual’s goals and risk tolerance. 

Payroll has the ability to empower your people to take control of their financial well-being. This national payroll week—and any other week, of course—employers should actively support financial wellness by offering employees tools to invest and manage finances.

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Payroll can be a challenge for even the most seasoned professionals. It takes up a lot of time and requires great attention to detail to ensure that there are no mistakes. 

Want to learn more about common payroll errors and time wasters? Download our latest checklist, Are you spending too much time on payroll?, to discover how you can save time and energy on your payroll processes, whether it’s handled by HR or finance (or both).   

Payroll can be considered an HR function because it’s employee-facing.

Payroll’s functionality goes beyond finance and is an essential part of HR, ensuring that employees are paid fairly and on time. Research shows that “payroll is the largest company expense by a long shot, at 68% of a company’s total overhead. In addition to this, 40% of workers stated that they would find it very difficult to meet financial obligations if their pay check was delayed by even just one week”.

HR is responsible for many employee deliverables, including “the bulk of items processed within payroll—changes to pay, salary, bonuses, employee working hours and benefit deductions”. On top of that, HR may have a better understanding of how time sensitive some of these issues can be, and will be able to address them more quickly and easily than someone in finance. 

Because HR deals with these deliverables, they end up responding to a number of payroll processing issues and therefore have the knowledge to answer the majority of questions that employees may have. HR professionals are also accustomed to dealing with legislation and confidentiality, which is a crucial aspect of payroll. 

There are many aspects of payroll—such as how to properly do reconciliation—that only a financial expert will know how to do. 

Payroll is naturally a finance function. Financial experts have a more thorough understanding of tax law and are therefore more up to date on dealing with compliance issues. Additionally, payroll audits should be handled by financial experts in order to ensure compliance. 

There’s a third option for payroll processing: using a third party payroll provider. 

From the same survey previously mentioned, 15% of participants thought that payroll should be done by a third party payroll specialist. Outsourcing or automating payroll can save you time and ensure a higher degree of accuracy. 

Whether your organization runs payroll as a part of HR or finance—or both/neither—you should ensure that you choose whatever works best for your employees. 

Want to learn more about how you can run payroll more effectively? Download our latest checklist, Are you spending too much time on payroll?, and discover where you might be wasting time. 

The post Payroll as a part of HR, finance, or… neither? appeared first on Rise.

Managing payroll for a small team has its challenges. The paperwork and time commitment alone can overwhelm even the most savvy business owner. Payroll requires careful planning and proper tools to get the job done so your employees can receive their pay cheques on time and error-free.

Small teams don't always have a dedicated payroll manager so it ends up being the business owner's responsibility. If that person is you, it helps immensely to have a set of payroll best practices in mind for tackling payroll for your small business.

Write down and track important payroll dates for the fiscal year.

Being prepared for deadlines and submission dates is crucial for effective payroll management. Missing deadlines can result in unnecessary fees, penalties, or interest payments, which can be crushing for any small business. That's why our first and most important tip is to be prepared.

One of the best resources for payroll information is the Canada Revenue Agency (CRA) website. There, you'll find everything you need to know on payroll best practices for your small business.

Having a payroll communication plan in place will clearly outline pay structure for you and your employees.

The purpose of a payroll communication plan is to avoid any miscommunication, errors, or unclear agreements and to help employees understand their net pay. The plan may be included in an onboarding package, with information such as an employee’s pay schedule or how vacation accrual is handled.

The Canadian Payroll Association recommends the following measures:

• Publish a template that will identify all elements of the pay statement including details of earnings and deductions
• Explain how different exemption amounts and tax credits can impact net pay, be unique to each individual, and change over time
• Prepare an annual statement of compensation and benefits

If you've settled into a nice payroll groove and have been paying your employees on time without a hitch, it might be time to automate.

Electronic payroll systems/software have been around for ages and have the benefit of letting you automate the more repetitive parts of the payroll process. Employees love the hassle-free digital experience and employers love the efficiency.

There's also the added benefit of freeing up more time and having cloud data storage, payroll reporting, end-of-year filing, and much more. On payday, employees will receive their pay stubs automatically via email—a much more modern approach than receiving a piece of paper in the mail.

No budget for software? Many payroll software providers offer free small business payroll up to a certain number of employees. Rise small business payroll for example is free for any business with 20 or fewer employees.

To file your tax forms the correct way, your employees must be classified the right way.

You would be surprised at how many companies classify their employees incorrectly. Full-time employee or independent contractor? Part-time or volunteer? Seasonal or intern? Knowing the distinction between these types of employee classifications is crucial to proper tax filing at the end of the year. 

If you’re unsure of employee classifications, Payscale has a breakdown of the different terms to help you better understand.

Having tidy and well-kept payroll records pays off in the long run. This means all historical records for employees should be easily accessible whenever they are needed.

We're past the days of filing cabinets—powerful payroll and HR software systems are now the norm. A human resource information system (or HRIS) easily collects and stores historical data inside each employee profile so that payroll information can be found right when you need it.

Lastly, schedule regular audits of your payroll system to make sure it's doing the best job possible for your business.

Take note of where your payroll process can be improved or automated. These are the areas eating up the most time for you or your administrators. Is the system producing results? Are mistakes or errors common? Are repetitive tasks optimized for efficiency? Identify what is working and what isn't and explore proper solutions that suit your needs.

Effectively managing payroll for a small team requires a solid grasp of payroll best practices. If we had to summarize it, organization and preparation are imperative for smooth payroll processing and simple filings at the end of the year.

The post Simple payroll best practices for small (but growing) teams appeared first on Rise.

For many businesses, payroll is a significant operating expense. Which is why it’s important to be able to assess the return-on-investment (ROI) of your HR payroll system and compare with marketplace alternatives—in a way that makes sense to finance and accounting professionals, such as CFOs, so that leaders can make the right business decisions.

First, figure out how productive your current payroll system is.

Running payroll involves many steps and touches many parts of your organization, so it’s important to examine your entire process end-to-end to understand your level of productivity. Start by looking at how much time and effort you spend collecting gross data for running payroll, including timesheets for hourly employees.

Next, try to determine how much time it takes to perform a pay run, and how quickly and easily you can identify and resolve payroll errors. Have you thought about how much effort is required to run payroll reports? An all-in-one solution that combines payroll with HR, time tracking, and group benefits can go a long way in improving productivity by reducing the amount of time spent on duplicating data.

Consider the accuracy of your payroll system when calculating your ROI.

Although the true cost of errors may be more difficult to measure, having a strong ROI depends heavily on the accuracy of your timesheets, tax withholdings, holiday and overtime pay, deductions, and more. When assessing your ROI, consider the accuracy of your current system against a payroll system that is integrated within an HR platform. This integrated sharing means a seamless sync between data, helping to reduce administrative work and ensuring the most up-to-date information is always used when running payroll.

No one wants to duplicate effort, but without the right systems in place, you may be spending too much time on payroll.

Take a closer look at your current payroll system: does it provide a single source of truth that collects accurate employee time with little or no effort? Can you easily create and distribute pay statements and effortlessly post to your payroll GL?

Next, consider all of the HR data that feeds into your payroll system. Does your current payroll system require you to manually update employee information that is kept in another HR platform? Are you manually importing timesheets? How much time do you spend entering and reconciling group benefits every time you have a pay run? Add up the number of hours you spend on any of these tasks per pay run to help calculate your ROI.

The power of your payroll reporting system is often overlooked when calculating ROI.

How extensive are your payroll reporting capabilities and how much time and effort is involved in generating the reports you actually need? Some payroll systems provide custom reporting—but at a price. Can you create your own reports? Or are you forced to wait for your payroll provider to generate them for you while you wait? Often payroll providers limit the number of custom reports that you can generate, charging fees for their reporting services, and for running the volume of reports that you need. All of these extra costs are important to consider when assessing your payroll system.

Assessing your ROI also requires a keen understanding of what the overall cost is of your current payroll process.

How well do you really know the true cost of your current payroll process? Every cost adds up, from software and hardware to printing and payroll services fees. Consider every cost involved when evaluating your own HR payroll system against other systems, including cloud-based HR systems that often follow different pricing schemes. Some HR systems offer more transparent and simplified pricing than traditional payroll systems, such as pricing on a per employee and per pay run basis. This makes it easier to understand what you are spending and helps you forecast for the future.

Your current system or process may be putting you at risk of non-compliance, which incurs a ‘soft cost’ when calculating your ROI.

The possibility of non-compliance means there’s a potential risk of incurring fees or penalties from the CRA due to incorrect tax withholdings. Also, if your time tracking system is not seamlessly integrated with your payroll system, mistakes and misclassifications can wreak havoc on your organization and quickly cost you a bundle when you least expect it.

Performing a complete ROI analysis will help you understand if your current HR payroll system is truly meeting your needs and will help guide you towards making the right decision for your future.

Our all-in-one integrated online payroll program provides a powerful, stress-free, and accurate solution for Canadian businesses. Book a free demo today to discover how Rise can help you.

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There are a lot of components to consider when it comes to company payroll administration. From calculating vacation pay for your employees to issuing records of employment (ROEs), we address and answer some of the most frequently asked payroll questions regarding all things related to payroll management and payroll administration.

1. Can employers give paid time off instead of overtime pay?

An employee and an employer can make an agreement in writing that the employee will receive paid time off (PTO) instead of overtime pay when they work extra hours. This is referred to as "time off in lieu" or “banked time”. If an employee has agreed to bank their overtime hours, they must be compensated at the rate of time and a half (1.5 hours) of PTO for each hour of overtime worked. Typically, paid time off must be taken within three months of the week in which the overtime was earned.

2. How is the rate of vacation pay calculated and when is this pay payable?

According to the Employment Standards Act, vacation pay rate is calculated as a percentage of the wages an employee earns during the year. Starting with the minimum requirement of two weeks of annual vacation time, vacation pay is 4% of all earnings made in the first year of entitlement, and this rate accrues based on each consecutive year of employment. After five years of consecutive employment with the same company, the minimum rate moves up to 6% and three weeks of allotted vacation time. 

The sum of the vacation pay is payable before, during, or after the taken vacation time—which is dependent on the established policy as set by the employer. If agreed to in writing by the employer and the employee, vacation pay may be paid on every paycheque.

3. How is statutory holiday pay for employees determined?

Eligible employees are entitled to be paid an average day’s pay on statutory holidays and on a day off in honour of a statutory holiday (if the stat holiday falls on a regular day off). An average day’s pay is calculated by dividing the total wages (including commissions and vacation pay, but excluding overtime pay) earned in the 30 calendar days before the statutory holiday by the number of days worked.

4. What is the bonus tax method?

The bonus tax method is used for calculating taxes, along with CPP and EI deductions, on bonuses, retroactive payments, and other payment outliers. Calculating bonus tax varies in ease and difficulty level.

5. I accidentally overpaid an employee through a payroll error—what do I do?

If the overpayment was due to an administrative miscalculation, you are required to rectify the payment through deductions. The amount of the overpayment should also be deducted from the total income listed on the employee’s T4 form. If the employee pays back the owed amount within the year of the error, they’re only required to pay back the net total (provided that you can adjust the remittances before the year’s end).

6. What are the tax implications of paying an employee in cryptocurrencies?

Since cryptocurrencies are managed by advanced computer algorithms and not by a central bank, digital currencies such as Bitcoin, Dash, and Ethereum are not considered legal currencies by the CRA. However, they are still taxable. Employers and employees are advised to keep track of the equivalent Canadian dollar value of the cryptocurrency upon the initial exchange of the cryptocurrency. 

7. When do I report payroll remittances to the CRA?

If your payroll software doesn’t automatically submit remittances to the CRA on your behalf, you’ll need to send them to the CRA according to their submission schedule. The deadlines vary depending on your average monthly withholding amount. Penalties will incur for missed deadlines.

8. Are taxable benefits subject to EI and CPP deductions?

Yes. If an employer provides a taxable benefit to an employee, the employer must calculate the value of the benefit, calculate the proper payroll deductions for the taxable benefit, and file an information return.

Bonuses, incentives, awards, and gifts are also considered taxable earnings and, unless stated otherwise, are subject to CPP, EI, and tax deductions. If paid in kind, the value is subject to CPP and taxes but not EI.

The Employers’ Guide to Taxable Benefits and Allowances informs employers on which taxable benefits are subject to CPP and EI withholdings along with the codes that are required to report them on the employee's T4.

9. Which small business expenses are eligible for tax deduction claims?

Spending related to the management, operation, and growth of your small business—from annual license fees to meals and expenses for entertaining clients—can qualify as partially or fully deductible. For a detailed list of business expenses, visit the Business expenses page on the CRA’s website. 

10. When do I need to distribute T4 slips to my employees?

Employers are responsible for preparing T4 slips for all of their company’s current and previous employees who received income during the tax year. T4 slips must be sent out via mail by February 28th. If opting to go the paperless route, you must have an employee’s written permission for them to receive their T4 electronically. 

For a comprehensive guide to the T4 process, download our free Year-End Guide for Payroll Pros.

Rise can help you navigate and automate your payroll processes with accuracy and efficiency. Book a free demo today to discover how.

The post The answers to 10 frequently asked questions about payroll appeared first on Rise.

To paraphrase Mark Twain: there are only two certainties in life, and one of them is taxes. 

The tax season is upon us and there are a number of 2020 income tax changes that both you and your employees should be aware of. For a comprehensive list of 2020 income tax changes, visit the Canada Revenue Agency (CRA) website.

Tax season can be stressful and confusing—at best of times. With many people having received some form of government support throughCOVID-19 emergency benefits, your employees  might be looking at owing money rather than receiving a return. 

That’s why it’s so important to file early and know which 2020 income tax changes apply to you so you can add them to your return. 

Increased processing times

The CRA has indicated that everyone should plan for increased processing times, in part due to a security breach where hundreds of thousands of myCRA accounts for individuals were locked in order to protect users. 

Advise your employees to file their tax returns as soon as they are able to in order to avoid any late penalties. April 30 is the last day to file. Processing time is generally two weeks, but you can also check processing times on the CRA website. 

Work from home credit

On your 2020 tax return, you can claim expenses associated with remote work under “Other employment expenses” on Line 22900. This includes things like office supplies and WiFi costs.

The CRA writes that “If you are eligible, you can claim $2 for each day that you worked at home during the four-week period plus any other days you worked at home in 2020 due to COVID-19, up to a maximum of $400”. Eligibility is determined by the following:

• Working more than 50% of the time at home for a period of at least four-weeks consecutively due to COVID-19
• You had expenses that were directly related to your work

Changes to the Home Buyers’ Plan

The Home Buyers’ Plan (HBP) allows first time home buyers to withdraw from their Registered Retirement Savings Plans (RRSPs) by up to $35,000 to use as a down payment on a first home. The amount must be repaid within 15 years. 

Previously, the HBP was only available to those who were buying a home for the first time. However, this year the CRA notes that if you experienced “a breakdown in your marriage or common-law partnership, you may be able to participate in the HBP under certain conditions”. 

This was put into place to help individuals who have already separated or are in the process of separating from their partner to maintain homeownership. For more information on the Home Buyers’ Plan, visit the CRA HBP webpage. 

Digital news subscriptions

According to the CRA: “For the 2020 to 2024 tax years, you may be able to claim a non-refundable tax credit for expenses you paid in the year for a digital news subscription with a qualified Canadian journalism organization”.

This credit is a part of a program to help support Canadian journalism. For those individuals that subscribe to Canadian news sources online that are eligible for the tax credit, they can receive up to $500 back. For more information, visit the Government of Canada webpage on the digital news subscription tax credit. 

Emergency benefits

During this past year, many Canadians received a COVID-19 relief benefit such as the Canadian Emergency Response Benefit (CERB). Those emergency benefits may be taxable. If so, you would have received a slip in the mail, or it is available online at My Account for Individuals. 

This means that, depending on overall income for 2020, you may owe money in taxes, which is why it’s so important to include in your return all of the different tax reductions you are eligible to claim. 

If you’re unsure about which 2020 income tax changes apply to you, we advise you to consult with a tax professional. You can also use a service such as TurboTax or WealthSimple that will help you complete your tax return yourself. 

The post 2020 income tax changes to share with your employees appeared first on Rise.