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My husband and I are starting a new company in Ontario, Canada, and targeting to get about 25 employees. I am trying to gather as much info as I can about how to create a human resources and payroll system for a start up company. I am the HR Director, but I don’t have a lot of experience with startup. What would be the best way to establish the payroll structure?

As of right now, I looked for these options:
- using Electronic Fund Transfer offered by my bank and do the deduction by myself,
- using a payroll software offered for a monthly fee

I don’t know if someone have suggestion about it. I am not looking for the brand of a software, I am more looking to see if the option of doing myself makes sense? I want to learn, and of course save money to the company. That’s why the idea to hire an experienced contractor to help with it is not an option. We want to reduce the cost, and since I will oversee the HR department, we can’t justify to investors to spend more money on it. I am already taking some free online HR courses, and I look for any workshop in my area. However, so far, nothing is really related to HR for a startup.

I am open to any other suggestions; your help and advice would be highly appreciated. Thanks!

  • Can I know why I have been down voted please? I would like to know how I could improve the way that I ask questions. I really want to use this platform properly, however, I can't figure out what is wrong with my question above. Any suggestion for improvement will be welcome. Thanks! – Nathalie Jun 3 at 16:59
  • I'm not the down-voter, but my impression of this SE site is that it's not about the entrepreneurship details of starting or running a business - making your question mostly off-topic – brhans Jun 3 at 17:02
  • Thank you, that's can make sense. However, would you have any suggestion about a SE I can use for entrepreneurship question? – Nathalie Jun 3 at 17:05
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Outsource it. Insperity and companies like them are full of experts to help companies exactly like what you describe. One seriously bungled HR "event" can destroy a small company. A company such as this can make sure you start out "right" and keep you there.

Remember: HR is a supporting function - it is not a revenue generator. Keep it simple, keep it small, do it right.

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    Agree - definitely outsource it. Your investors will be happier, because they'll know it's being done correctly, instead of being hashed together by someone who isn't an expert. – PeteCon Jun 3 at 16:04
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    Adage I have heard is just as noted here. If it is not core business function, outsource it. This can mean a lot of things based on the level you need, but you have enough headcount here that it seems a full services company rather than a website would be appropriate. – Bill Leeper Jun 3 at 16:17
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    Be sure you use the proper system to handle payroll. What you don't want to have happen, is to issue payroll checks, that does not take out the appropriate taxes. – Donald Jun 3 at 16:59
  • Thank you very much for you answers. I will look to it. – Nathalie Jun 3 at 17:00

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