RWashington said:

The company has another business that began to outsource their payroll to ADP and the owner is now asking if we should do the same for this company, but I have the feeling it may not make financial sense for 1 employee.

Sage 50 may not make sense for the one employee at $30 per pay & remittance, but possibly it would make sense to begin to use Sage 50 payroll for the 'other business', depending on the circumstances, and spread the cost over more employees. 

Depending on the cost of the ADP service vs. Sage 50 with the integration of Beanstream or Telpay, the time, convenience, and cost savings to not have to re-key payroll data back and forth between multiple systems could make Sage 50 the one solution.

If detailed wage cost tracking in Sage 50 isn't important to the business and it isn't worth doing it all in Sage 50, then I would do a handwritten pay stub with manual cheques from Sage 50, and use the CRA payroll deductions calculator. 

Hi Randy, thank you for your response!

The other business was using Sage50 for payroll but decided to outsource because there isn't a full time accounting position here, so it is more convenient.

I think because it is only 1 paycheque it will not take too much time to add the information into Sage.

Thank you again!

I would not renew Sage 50 with Payroll for one employee. Also I don't think ADP is an option for one employee. I would suggest the same as Randy and use the CRA Payroll Deductions Online Calculator each time the persons pay changes. Once the figures from the CRA PDOC are obtained you can create a Purchase Journal recurring entry for the accounting and payment. You would not have the luxury of direct deposit as the Payroll Module would not be available to you. You would also set up a Purchase Journal recurring entry for the amount to be paid to the Receiver General for each period. At year end you would have to reconcile all of the deductions so you could prepare the T4 slip and the T4 Summary Form both of which can be done online at the CRA site and it includes filing directly. I also, maintain a spreadsheet so that I never go over the maximum premiums for EI and CPP.