Payroll 101: What Every Small Business Owner Needs to Know

Written By Dawn McCann

Alright, small business owners, let’s get real. Payroll is one of those things you can’t ignore. Mess it up and you’re risking unhappy employees, tax headaches, and maybe a few sleepless nights. But don’t worry, I’ve got you.

Payroll Basics

Payroll is basically paying your employees for the work they do. Sounds simple, right? But there’s a bit more to it:

  • Gross Pay vs Net Pay: Gross pay is what you agree to pay someone. Net pay is what actually hits their bank account after deductions.

  • Deductions: Taxes, CPP, EI, and maybe some benefits. You need to get these right or the government will notice - and they do notice.

  • Pay Schedules: Weekly, biweekly, monthly. Pick a schedule and stick to it. Employees appreciate consistency.

Why Payroll Matters

  • Legal Compliance: Mistakes can cost you penalties. Trust me, the CRA is not forgiving.

  • Employee Trust: On-time, accurate paychecks keep your team happy and loyal.

  • Financial Planning: Knowing your payroll costs helps you budget, price products, and plan for growth.

My Two Cents

Payroll is not just numbers in a spreadsheet. It’s a system that keeps your business running smoothly and your employees happy. Done right, it’s peace of mind. Done wrong, it’s stress you do not need.

Think of it like the engine of your business. If it runs smoothly, everything else goes. If it sputters, you’re stuck on the side of the road wondering where it all went wrong.

Dawn McCann

At The Ledger, we help small and medium-sized businesses bring order and clarity to their people, processes, and payroll. From HR support and bookkeeping to creative solutions that strengthen your brand, we combine precision with purpose.

Our name reflects our approach: a ledger is more than numbers - it’s a record of trust, accountability, and growth. Every page tells a story, and we’re here to make sure yours is written with integrity.

Whether it’s one paycheck, one policy, or one project at a time, The Ledger is your partner in building something meaningful.

https://www.theledger.ca
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