Surrey Employers: Keep Payroll and Contractor Files Distinct

Document the relationship and the instructions

The actual work arrangement may require review under employment, tax and workers’ compensation rules. Retain the contract, role information and instructions from the responsible adviser. The bookkeeping category should follow that review rather than replace it.

For employees, the recurring record includes approved hours, rates, changes, reimbursements and payroll reports. For suppliers, it includes the legal payee, scope, invoice, approval and relevant coverage evidence.

Illustrative example: the same receipt appears twice

A Surrey maintenance company reimburses an employee $185 for supported business materials. Later, a supplier invoice includes the same receipt as a recharge. Matching the payer and job reference identifies the duplicate before the second payment is approved.

The legitimate $185 expense stays in the books once. The correction history records which claim was removed and why, so the project report does not lose the cost while the duplicate is fixed.

Preserve the clearance evidence

WorkSafeBC’s clearance process provides information about a firm’s registration and account standing. Retain the letter, its covered period and the correct addressee where required. A saved letter should be reviewed for the actual contract period rather than assumed to apply indefinitely.

Clearance status is a separate question from tax worker classification or whether work was commercially acceptable. The payment approver should know which questions are confirmed and which still require follow-up.

Reconcile the two payment streams

Compare payroll registers with net-pay and remittance records, and supplier invoices with the payable ledger. Reimbursements should connect to receipts and the person who paid. Significant balances need an explanation that can survive a change of administrator.

When duties, working arrangements or subcontractors change, update the supporting files. Avoid importing an overtime rule, coverage assumption or statutory deadline from another province. The practical goal is a record that lets the appropriate adviser assess the facts and lets the owner authorize payments with clear evidence.

Record who supplied each payroll change and its effective date. A correction should preserve the original report and the approved adjustment rather than overwrite the history.

Put this into practice

• Payroll bookkeeping →
• Maintenance businesses →
• Workload tools →