In addition to the approximately $9.9 billion in employer costs related to compliance activities, there is a cost for activities directly related to additional work required as a result of non-compliance (actual or perceived).
The report quantifies the approximate cost of these additional resource activities borne by employers to be $1.7 billion, or 14 per cent of the total cost of compliance.
These additional activities include:
- Responding to payroll-related information requests from the CRA
- Facilitating payroll audits
- Processing trust exam notifications
- Conducting Pensionable and Insurable Earnings Reviews (PIERs)
- Meeting provincially regulated payroll obligations such as employer health and post-secondary education taxes and levies, as well as Workers’ Compensation Board requirements
![COCFigure 8 – EN](https://payrollinfocus.payroll.ca/wp-content/uploads/2020/11/COCFigure-8-EN.png)
In estimating the total cost of employer compliance for this report, PwC Canada did not incorporate indirect costs such as:
- Legal fees
- Third party provider costs
- Service charges from payroll software service providers
- Professional membership fees
- Activities not directly related to the payroll function, such as strategy and planning
- Hours required by individuals in finance for approving overall payroll reporting
These indirect costs are significant.