What is In-House Payroll Processing?

Going in-house gives you more control, saves you money, and gives you breathing room. With an in-house payroll system, you’re in the driver’s seat and can help to empower your entire organization.

For 2022 year-end resources please visit our updated Canadian Payroll Resources Guide

What is In-House Payroll Processing?

If you’re reading this, you may be interested in making the switch to in-house payroll processing. Processing your payroll in-house is awesome for many reasons, but one of the main reasons why organizations choose to go in-house is to gain control over their processes, money, and time. With the right HCM system and a minor learning curve, your company can thrive by going in-house!

What is in-house payroll?

Essentially, in-house payroll is when an internal payroll team processes payroll for the entire organization. This means your organization’s payroll team would handle all steps of the process – from preparing and double-checking remittances to submitting them. In-house payroll processing provides control, peace of mind, and the flexibility teams need to make timely changes and better decisions.

The benefits of in-house payroll

Depending on your company size and complexity, in-house payroll can offer many benefits to organizations:

Increased control over payroll processes

One of the major benefits of processing payroll in-house is that you have greater control over the entire payroll process. You can create your own workflows, make last-minute changes, and resolve issues much faster than waiting to get a response from an outsourced payroll vendor.

Cost savings

Cost is another key factor when considering an in-house payroll solution. Payroll represents a significant portion of your organization’s costs. When you outsource your remittances, you forego interest income on the amount of your payroll until your employees get paid and your money ends up in your payroll provider’s pocket.

Advanced payment to your outsourced vendor ties up company funds that could be deployed elsewhere. ‍Payroll outsourcing companies are earning hundreds of millions of dollars by holding onto your payroll dollars before your employees actually get paid. ‍These funds could be working for you earning interest income on purchasing inventory or other capital investments.

At Avanti, we wanted to better understand what these payroll costs actually look like for Canadian companies, so we built an In-House Payroll Savings Calculator to compare In-House Payroll Processing to Outsourced Payroll. Give it a try to see what you could save.

In-house payroll makes the remittance process easier

Are you always in a rush to submit your remittances on time to a payroll outsourcer who needs them days in advance?‍ When using an in-house payroll system to remit to Service Canada and CRA, all that’s left to do after the heavy lifting of calculations and reconciliation is complete, is make your payment by following steps as simple as paying a bill online.

At Avanti, we provide an easy-to-use Receiver General and Québec Remittance report that is similar to the PD7A report, indicating how much is owing and when it’s due.

With an outsourced payroll provider, your adjustments typically have to wait until the next pay period. With an in-house payroll provider, you can run an off-cycle pay addressing the discrepancy, remitting the right amounts as long as the payment is made by the due date defined by CRA.

You can also set up automated alerts and notifications in Avanti, so you don’t forget to make important payments. And if you notice a deduction error before your remittances are due for payment, off-cycle pay runs in Avanti provide you with added peace of mind to make an adjustment for the current pay period. ‍Time and time again, in-house flexibility and control save you time and money.

Control Over Year-End – From T4s to CRA Remittances

T4 Flexibility

When you process payroll in-house, you get more flexibility with T4s and year-end functionality, like ensuring your T4s are correct before being processed through the system, rather than being told when you need to run your T4s.

Configurable Tax Slip Special Boxes

With a flexible in-house payroll solution, you should have everything you need in your system, even new earnings for new boxes and tax slips for employees who have special boxes. Having the option for special boxes is key for diverse organizations that have complex needs. A great in-house solution isn’t one size fits all, it should be configurable to meet all your requirements.

Balanced CRA Remittances

Working with an in-house payroll system allows you to balance your CRA remittances. You can manage your own programming, remittances, and deposits.

Once all your payroll activity is collected, your payroll team is able to compare the remittances that are supposed to be submitted to what was actually submitted. These remittances inform you if all the information in boxes (associated with each employee) balances with their T4 summary.

The best HCM system and exceptional customer support are all you need!

If you’re looking at solutions for an in-house provider, here are a few things to keep in mind:

  • Customer support – A great customer support team will be your partner in getting work done. At Avanti, our customer support team is our pride and joy. Specializing in Canadian payroll and workforce management, our support is in-house, in Canada, and always on-hand to help you with anything from T4 updates to union complexities.
  • Configurability – Every business is unique, which is why you need an online payroll solution built to handle all the complexities associated with running your business. If you require unique tools, ask prospective vendors about GL integration, multiple business numbers and jurisdictions, collective bargaining agreements, multi-union support, and custom earning codes with configurable formulas.
  • Transparent pricing – Get upfront and honest about money. Most mid-size businesses do well with a simple pricing model that is all-inclusive.  Avanti charges on Per Employee, Per Month (PEPM) which means no hidden fees and no additional costs for creating payroll EFTs, tax slips or web ROEs, off-cycle payroll runs, electronic pay statements.
  • Full Control – From reporting to changing earning codes and more – look for a self-service model that empowers you to achieve more in less time.

Want to learn more about Canadian In-House Payroll Processing?

At Avanti, we develop highly configurable in-house Payroll tools to help payroll professionals manage, integrate, and automate their payroll practices. Easily make changes, run your own reports and get access to everything you need when you need it.

For more information, check out The benefits of in-house payroll processing.

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