Can VPM track and report payroll by department?

Yes. As part of the on-boarding process, we will ensure our systems are set up to reflect how your organization is structured in order to meet your departmental reporting needs.

How does VPM pay a client's taxes?

Taxes are submitted to the government electronically, with source deductions (CPP, EI, and Tax – Federal & Provincial including EHT in Ontario) submitted on your behalf.

Does VPM stay up-to-date with new payroll rules and legislations?

Yes. We follow all federal and provincial government changes affecting payroll. We add additional value to some client businesses by privately advising when a client might be offside on any legal obligation with their employees as well.

Do you offer payroll services to individuals or families?

Yes. For example, we can manage payroll for a family that has hired a nanny and does not want to manage their payroll and related reporting requirements.

What reports will I get as a new client?

We offer a robust suite of payroll reports for you and your business, such as employee paystubs and direct deposit statements and summaries, timesheet income listing for verification, the current payroll register, GL reporting for any accounting system reporting requirements, and more. Additionally, of course, all government and CRA required reports are sent to you in copy as well for your records.

Are you able to process payroll in Quebec?

Yes. Please contact us for more details.

Can you provide services on remittance of statutory deductions (Income Tax, CPP, EI, WSIB)?

Yes. We perform all regulatory reporting and CRA remittances for Income Tax, CPP, EI, WSIB, Health Tax, Garnishments, Union Dues, and Statistics Canada submissions.

Can I get a copy of sample payroll reports?

Yes, please contact us and we'll send you a copy.

Can your system help manage HR?

It really depends on the business, but for most cases no. Human resources management is a very large function, and while we track all employee information needed for payroll, this information may or may not satisfy typical HR management business needs.

Should You Outsource Payroll in Canada? Pros & Cons | V-Tac Payroll

Explore the pros and cons, CRA compliance benefits, cost savings, and expert support for Canadian businesses.

Managing payroll is one of the most important – and time-sensitive – responsibilities for Canadian business owners. Between CRA remittances, T4s, provincial labour laws, and employee benefits, payroll can quickly become overwhelming.

So the big question is: should you, as a business owner, outsource payroll in Canada? In this guide, we’ll break down the pros and cons of outsourcing payroll to help Canadian businesses make an informed decision.

What Is Payroll Outsourcing?

Payroll outsourcing means hiring a third-party payroll service provider to manage employee pay, tax deductions, remittances, record-keeping, and year-end reporting on your behalf.

In Canada, this includes:

CRA remittances (CPP, EI, income tax)
T4 and T4A slips
ROEs
Provincial compliance (ESA, WSIB, vacation pay, statutory holidays)
Direct deposit and payroll reports

Learn more about our full-service payroll solutions on our Payroll Services page.

Pros of Outsourcing Payroll in Canada

1. Ensure CRA Compliance and Avoid Penalties
Canadian payroll legislation changes frequently, and missing a deadline or filing incorrectly can result in penalties, interest, or audits. A professional Canadian payroll provider monitors CRA and provincial updates to keep your payroll compliant, reducing risk and giving you peace of mind that your obligations are handled accurately and on time.

2. Save Time and Reduce Administrative Work
Payroll is one of the most time-consuming administrative tasks for business owners, especially without a dedicated payroll team. Outsourcing payroll to a Canadian provider removes this burden, allowing you to focus on sales, operations, and growth instead of calculations, filings, and paperwork.

3. Improve Accuracy and Reduce Errors
Manual payroll processing increases the risk of errors such as incorrect wages, deductions, or late filings. Canadian payroll outsourcing services use automated systems and expert review to ensure accuracy, consistency, and compliance, reducing costly mistakes and employee frustration.

4. Increase Data Security and Privacy
Payroll contains highly sensitive employee information, making data protection essential. A trusted Canadian payroll provider invests in secure systems, encryption, and monitoring that many businesses cannot afford in-house, reducing the risk of data breaches and identity theft.

5. Scale Easily as Your Business Grows
As your business grows, payroll becomes more complex – from hiring and benefits to multi-province compliance. Canadian payroll services scale with your business, adapting to workforce changes and regional labour laws so you can expand with confidence.

6. Gain Access to Payroll Expertise and Ongoing Support
Outsourcing payroll gives you access to Canadian payroll experts who understand tax laws, employment standards, and compliance requirements. This support is especially valuable during audits, year-end processing, terminations, or CRA inquiries, reducing stress and improving confidence.

7. Support Multi-Province and Remote Workforces
Operating across provinces or employing remote workers increases payroll complexity due to varying tax and labour laws. A Canadian multi-province payroll service ensures accurate deductions and filings in every jurisdiction, supporting business growth without administrative strain.

Cons of Outsourcing Payroll

1. Reduced Direct Control

When you outsource payroll, you rely on a third party to manage your pay cycles and filings. While reputable providers offer transparency and reporting, some business owners prefer full in-house control.

2. Service Fees

Payroll outsourcing involves a monthly or per-employee fee. However, when you factor in saved time, reduced errors, and avoided penalties, many Canadian businesses find outsourcing still more cost-effective than managing payroll internally.

3. Dependency on Your Provider’s Support

If your payroll provider lacks responsive customer service, issues can arise quickly. Choosing a Canadian payroll service with strong support and clear communication is essential. It is even more beneficial to find one that provides a dedicated support manager for your business, as this person will know your business much better than a single customer service representative.

4. System Integration Challenges

Payroll systems must integrate with accounting, HR, and time-tracking tools. While most modern payroll providers support integrations, setup may require coordination during onboarding.