This week is the 17th annual National Payroll week, which is designed to build greater awareness of the size and scope of payroll and its impact on business, government and employees across Canada. The workforce is constantly evolving, requiring today’s payroll professionals to keep up with ever changing employment and tax legislation. Contract labour has emerged as a major workforce trend and this has impacted traditional methods of payrolling, which are typically designed for full and part time employees.
Contract labour has increased in Canada; a trend that was driven by the downturn in the economy as more companies began to hire contract and temporary labour in order to adapt to organizational needs and changes in the economy. Since 1997, the contract labour market in Canada has grown by 300%, and it currently accounts for 25 to 35% of the North American workforce, bringing in 250 billion dollars annually.
The shift in the workforce toward contract labour has had an impact on the efficacy of traditional payrolling methods. It is now important that organizations execute the necessary due diligence when administering and payrolling contract and temporary workers. In the last 18 months Canada Revenue Agency (CRA) has increased the frequency of Worker Classification Audits to determine whether organizations are properly classifying their workers as employees or self employed contract workers. Without proper documentation and administration, organizations face the risk of having their contract worker deemed an employee. They are then subject to pay up to millions of dollars in owed payroll remittance premiums, back-taxes and wages.
Contract workforce administration specialists like Contingent Workforce Solutions (CWS) assist organizations with identifying worker classifications and ensuring proper government remittances; this mitigates the risk of worker misclassification and can save organizations millions of dollars. Jeff Nugent, Managing Director of Contingent Workforce Solutions believes, “Companies can no longer afford to do without the tools that allow them to account for and manage contract labour. This is not a luxury item – it’s a need.”
About CWS: Contingent Workforce Solutions is a business process management and advisory firm that help its clients gain control of their contract workforce. With close to 25 Years of Experience in Contractor, Temp staffing and Vendor Management Solutions, CWS is a partner that you can trust. Contingent Workforce Solutions’ was recently recognized in Profit Magazine’s 12th Annual PROFIT HOT 50 Ranking as Canada’s top new growth company, and was also awarded LoyaltyOne’s 50 Most Engaged Workplaces.
 National Payroll Week. The Canadian Payroll Association. http://www.payroll.ca/AM/Template.cfm?Section=National_Payroll_Week
For more information about how you can update your payrolling system to match the needs of today’s workforce, visit our website, or contact:
Sales & Marketing Manager
Phone: 1-866-837-8630 Ex. 9077