Subscribe to

Email Updates

June 13 accounting and payroll administrator diploma

As an accounting and payroll administrator, it’s important to understand employee classification, which means knowing the difference between private contractors and employees. It changes the way that people are paid, as well as whether or not deductions are taken off of payments. Administrators can be responsible for calculating paycheques, handling pension contribution forms, and other documents, as well as payroll filing. These are all things that change, depending on whether a worker is an employee or a contractor.

Employees are designated as working for a payer, who controls the type of work as well as where and how it is done by the employee. Independent contractors are in a work relationship in which the payer can only control the outcome of the work. Independent contractors will sometimes also have their own employees or subcontractors, who may do a portion of the work required.

Read on for why these two classifications matter to accounting and payroll administrators.

Apply Accounting and Payroll Administrator Course Lessons to Deductions

Employee paycheques are subject to deductions. This includes deductions that are mandatory, according to federal law. Canada Pension Plan contributions, Employment Insurance premiums and income taxes are a few of these deductions. You can use what you’ve picked up in your accounting and payroll administrator program to prepare administrative documents with diligence and accuracy, for properly calculated deductions. Independent contractors are responsible for their own deductions and often don’t receive benefits. The company doesn’t need to take care of any deductions and they pay the contractor directly.

When employees have questions about payments or find that there are issues with their paycheques, the payroll administrator can usually answer their questions and help them with their concerns. Payroll administrators assist with processing payroll and occasionally with managing benefits, so they are very knowledgeable in the area and will have access to time records as well as records of deductions.  You will be able to use your knowledge to confidently handle these questions.

June 13 accounting and payroll administrator coursePayroll administrators are ready for questions from employees about their payments

Payroll vs. Accounts Payable for a Career in Accounting Administration

Accounting clerks will often be responsible for data entry, record-keeping, and other administrative tasks with accounts payable. This is the money owed by a company to creditors and is often how private contractors are paid. Generally, private contractors will provide an invoice first, with their time record and rate.

Employees are paid through the company payroll. Payroll is a list of employees, the amount they are paid, and other payment and identification information. An accounting and payroll administrator course will cover payroll fundamentals and filing. A company handles time records and determines rates on their payroll, as opposed to requiring an invoice.

Misclassification for Accounting and Payroll Administrator Course Graduates

When employees are misclassified as independent contractors, it can result in the company avoiding taxes. Because of this, if a mistake is made, the company may be held responsible for the missing taxes. This often includes the company’s share of CPP and EI payments, plus the employee’s share, as well as penalties and interest.

June 13 accounting and payroll administrator programIt’s important to ensure accuracy in classification to prevent issues with deductions down the road

This would surely present a bit of a headache for an administrator, so it’s important to pay attention to classification and make sure that it’s correct the first time through. If you are working for a company that isn’t sure whether or not a worker is an employee, you can use the CRA as a resource by requesting a ruling from them. The more familiar you are with differences between independent contractors and employees, the more equipped you will be in your career to catch errors and ensure accuracy.

Are you interested in an accounting and payroll administrator diploma?

Contact Oxford College for more information.