Considering DIY payroll as you make your first hire? Running payroll might seem straightforward, and you may feel you can save a few dollars by doing it yourself, but if you’re a small business owner in Ontario without payroll experience, it could cost you more than you expect.
The Hidden Complexities of Payroll
At a glance, payroll might look like simple math. In reality, it’s layered with rules, deadlines, and responsibilities that affect both your business and your employees.
If done incorrectly, payroll can result in:
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Late or inaccurate source deduction remittances (CPP, EI, and income tax) that trigger interest and penalties from the CRA.
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Incorrectly filed Records of Employment (ROEs) that delay employee EI claims or spark CRA reviews.
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Faulty T4 slips that frustrate employees and lead to government scrutiny.
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Missed remittance deadlines, causing automatic fines—whether you meant to or not.
The Real Cost of Mistakes
Even small payroll errors can snowball:
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Employees may be underpaid, overpaid, or taxed improperly.
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You may pay hundreds—even thousands—to fix issues retroactively.
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CRA audits can flag your business for future reviews.
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Your credibility as an employer suffers.
In the end, the time spent trying to “figure it out” often costs more than hiring a professional.
What You Gain by Hiring a Payroll Pro
Outsourcing payroll to a qualified bookkeeper or accountant offers:
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Accuracy and compliance—no second-guessing forms, remittance deadlines, or tax codes.
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Peace of mind—your team gets paid properly and on time.
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Time savings—focus on growing your business instead of juggling payroll deductions and year-end slips.
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CRA audit protection—professionals help ensure your records are accurate and audit-ready.
Final Thoughts when considering DIY Payroll
If you’re running a one-person shop with minimal payroll, doing it yourself might be manageable. But once you start hiring—even just one or two employees—the risks of DIY payroll quickly outweigh the benefits. There’s a National Payroll Institute in Canada for a reason. It offers specialized payroll education beyond that included in the certified bookkeeper programs. It’s a niche skill that requires expertise.
Bottom line: Unless you’re trained in payroll compliance, this is one area where it pays to invest in a professional.
Would you like help setting up a smooth, stress-free payroll system? Compass CPA can support your business with not only certified bookkeepers, but certified payroll specialists as well.
