TORONTO, March 6, 2019 /CNW/ - Too many employers are overlooking one of their primary business functions — payroll. And, to their peril, they are putting their business at significant risk.
In 2018 alone, Canada Revenue Agency (CRA) reviewed the payrolls of 47,795 businesses, levying over $29 million dollars in penalties.
Despite the risks, a recent survey by the Canadian Payroll Association (CPA), conducted by Angus Reid Forum, shows that more than half of Canadian business leaders (54 per cent) would not know how to prepare for a payroll audit. Even more alarming, among those who indicate they have direct oversight for payroll, two-thirds (66 per cent) say they are unprepared.
The survey also revealed that nearly 70 per cent of Canadian business leaders are unaware of or do not think about the potential of a payroll audit. Once an audit is top of mind, however, a full quarter of business leaders report significant stress at the thought of being fined for payroll non-compliance.
Payroll audits, which can randomly target any business at any time, differ from the traditional business tax audits, which most employers anticipate. A payroll audit is an inspection by a third party to confirm compliance with payroll administration, accounts payable and receivable, recording of taxable benefits, and other regulations established by agencies such as the Canada Revenue Agency, Revenu Québec, Workers' Compensation and Employment/Labour Standards.
Non-compliance discovered through payroll audits can result in huge fines and penalties for employers and open them up to more frequent future audits. The CPA's free Payroll Audit Primer provides insider tips for employers to ease audit anxiety by helping them know what to expect if selected for audit.
The Primer is just one of many audit preparation resources provided by the CPA. Members have access to a comprehensive Payroll Audit Guideline and checklist, and a team of Payroll Compliance Advisors who can answer any pressing audit questions.
The Association also offers unique learning opportunities that help any organization get ready for a payroll audit, including seminars and webinars on: Taxable Benefits, Employment Standards and Payroll Essentials for Accounting and HR.
About the Canadian Payroll Association:
Canada's 1.5 million employers rely on payroll practitioners to ensure the timely and accurate annual payment of $970 billion in wages and taxable benefits, $324 billion in statutory remittances to the federal and provincial governments, and $188 billion in health and retirement benefits, while complying with more than 200 federal and provincial regulatory requirements. Since 1978, the Canadian Payroll Association (CPA) has annually influenced the payroll compliance practices and processes of over five hundred thousand organizational payrolls. As the authoritative source of Canadian payroll compliance knowledge, the CPA promotes payroll compliance through advocacy and education. For more information on the Association's Professional Development Seminars, Certification Programs, and the Benefits of Membership visit payroll.ca.
About this survey:
These are the findings of a study/survey conducted on behalf of The Canadian Payroll Association from February 4th to February 7th 2019 with a representative sample of N456 online Canadian members of the Angus Reid Forum. The survey was conducted in English and French.
SOURCE Canadian Payroll Association
For further information: To schedule and interview, contact: David Weinstein, David Weinstein Communications, [email protected], 416-553-9454; Adam Sanders, Manager, Communications and Marketing, [email protected], 416-487-3380 x 111