In recent research by the National Payroll Institute, it has been revealed that Canadian small businesses are emphasizing strong payroll practices amidst challenging economic conditions.
The survey indicates that 99% of small businesses prioritize paying their employees accurately and on time, and 96% are confident in their compliance with legislative requirements.
Peter Tzanetakis, president of the National Payroll Institute, highlighted the commitment of these businesses to high payroll management standards. According to him, small businesses adopt various strategies such as utilizing software, hiring qualified bookkeepers, or outsourcing to ensure payroll efficiency as they scale.
The study also reveals an increasing recognition among small businesses of the need for professionally designated payroll professionals, particularly as businesses grow. While only a third of smaller businesses currently employ a designated payroll professional, this figure rises significantly in companies with 50 to 99 employees. Additionally, 73% of businesses that employ payroll professionals feel more assured knowing that their payroll is managed by someone with professional training and designation.
The survey also explored how businesses seek payroll-related information and training. Almost half of the respondents would direct employees to government websites, and about a quarter would recommend online search engines. This underscores a potential gap in direct payroll education and resources available to small businesses.
Tzanetakis also pointed out the role of the National Payroll Institute as a crucial resource for small businesses navigating payroll complexities. The institute offers various tools and resources to support businesses at different growth stages in maintaining up-to-date payroll practices. Additionally, businesses can join the payroll-forward organization registry by signing the Declaration for Payroll, showcasing their commitment to payroll professionalism publicly.
This research was conducted from January 29 to February 2, 2024, surveying 507 Canadian small businesses with 1 to 99 employees, where the respondents were business owners or decision-makers. The National Payroll Institute continues to champion the importance of payroll professionalism in Canada, highlighting the significant impact of payroll practices on business health and compliance.