Want a copy of our Guide to the Best Payroll in Canada? Download the full 45-page guide, including our handy comparison chart, by clicking here.
Finding the best payroll provider for your company can be challenging. There are so many considerations to weigh out: how many employees you have, your company growth trajectory and the other tools you are currently using.
With the wealth of choices that exist out there, it’s easy to become overwhelmed. But never fear; we’re here to create some clarity around the process and save you hours of googling and online research.
To help make the arduous process of choosing a new payroll provider a little easier, we’ve conducted a head-to-head comparison of Canadian payroll provider PSI Payroll and the payroll software startup, Knit. We’ve done the legwork to surface the most valuable parts of each software and put them in a handy blog post.
To understand how they compare against one another, we’ll look at Knit vs. PSI based on software, cost, payroll features, HR and benefits, and customer service. Read on to learn more.
Note: You might have noticed that we’re writing about the difference between our service and someone else’s. We’ve done our utmost to remain as objective and as unbiased as possible because we want you to be equipped to make the best decision for you and your company.
That said, we believe that we offer the best payroll service in Canada. Interested in giving Knit a try? Find out how to get started here.
Knit vs PSI Payroll: An Overview
Every business, no matter the size, has different needs. This is why there’s no one-size-fits-all payroll software. Ultimately, it’s essential to look at who the software is made for and whether it meets your specific requirements.
Right off the bat, the main difference between PSI Payroll and Knit is the fact that PSI does not have software, whereas Knit Payroll software is on a secure, cloud-based platform. PSI’s offerings require you to email or call in and manage your payroll needs over the phone with their on-site customer service team.
Despite operations being not online, PSI boasts over 25 years of servicing several hundred Canadian and international clients. If you are interested in professional payroll services, do not mind calling in, faxing and emailing to receive the service you need, this could be a good fit for you.
Knit Payroll boasts a secure and accessible system that gives business owners secure access to their data from anywhere, at any time, on any device, as long as they have an Internet connection. Knit payroll’s online systems help make the process smoother, giving you the flexibility to manage everything online at your convenience.
Both Knit and PSI are built for small to midsize businesses, both in Canada and internationally. The significant difference is that Knit specifically unites HR, payroll, and benefits in one simple platform. The simplicity of Knit’s online platform helps employers save both time and money on their back-office administration. Knit’s software is easy-to-use, even for the least digitally-savvy users, and helps support a company’s accountants and bookkeepers running payroll for their small business clients.
Both Knit and PSI provide an excellent base for all your payroll needs. While PSI is an-in person service, you still receive professional payroll services.
Both the Knit platform and the PSI team can execute essential payroll functions, including automatically calculating, deducting and remitting payroll taxes to the CRA, which can sometimes be the biggest headache when you’re managing your payroll. Equally, both companies are fully compliant and can help save you time.
Since PSI is not online, their options for managing and processing payroll are limited. PSI offers options on how to process your company’s payroll, including some analog options such as submitting your payroll information to PSI for processing by email, phone or fax.
If you are looking to add or remove people from your payroll, PSI needs a week of lead time to make any payroll changes and require you to fill out an online contact form or make a phone call to start the process.
Some of the more complex payroll needs that our company requires may not be accessible via PSI. Knit payroll, on the other hand, provides companies of all sizes with a more robust online payroll platform that can be adapted to your needs.
Unlike PSI, Knit’s platform offers extra features, including multiple pay groups, WSIB remittance, unlimited off-cycle pay runs and functionality that allows you to pay third-party payees (i.e. RRSP management companies). Knit’s all-in-one solution goes the extra mile and offers extras such as email reminders to process payroll and complimentary ROEs and T4s for you and your employees.
International Companies with Canadian Employees
PSI proudly specializes in assisting both US and international companies in managing their Canadian payroll needs. If you are a global company with employees in Canada, PSI helps you manage your end-to-end payroll and helps make sure companies navigate legislation, tax and statutory reporting requirements with ease. Knit’s software also provides the same support for companies looking to manage their Canadian workforce. The difference lies in the ease of payroll management.
Knit provides companies with one unified payroll solution, no matter where the company or its employees are located. Everything is easily managed and processed online in a straightforward platform.
Above all, Knit boasts a secure self-service employee portal that helps give employees access to all their payroll needs, including paystubs, ROEs, T4s and much more, without having to contact their employer or administrator. This is a big time-saver for small and midsize businesses, taking the burden off the employer and providing ease of access to everyone in the organization.
HR & Benefits
While some companies are merely looking for a straightforward payroll solution, others seek an all-in-one solution that provides payroll, HR and benefits. Knit is a blended platform for all three processes, while PSI’s primary offering is payroll and helps connect your company with a third party that provides affordable employee group benefits plans. Depending on a company’s needs, this may be sufficient.
On the other hand, Knit’s platform easily integrates HR into your overall administrative backend and features are included in the platform’s monthly fee. This option is seamless and affordable for smaller companies that are seeking integrated HR for their team. Integrated HR means that all payroll and HR information is brought together across the one secure platform for easy management. Some of Knit’s main HR features include an employee database, e-signature documents, employee performance reviews, employee onboarding, and vacation tracking.
Customer service is essential for any product or service, but when it comes to time-sensitive processes such as payroll, it is particularly crucial. At any given time, there could be issues with a company’s payroll, and having a healthy customer service option can aid in quickly resolving any issues. Not only can disruption or problems with payroll amount to employees not receiving their compensation, but it can also result in compliance issues and a dreaded call from the CRA.
Both Knit and PSI are well aware of the importance of addressing payroll concerns as soon as possible. PSI Payroll provides companies with vital customer service and professionalism. Their entire business is built on phone, email and offline communications vs. in-software support.
Knit employs a customer support team of specially trained payroll specialists. No matter the issue, this team is equipped to handle virtually anything that could happen when dealing with payroll, HR and benefits.
PSI does not make its pricing available publicly. If you are looking to get a quote or a personalized payroll plan from PSI, interested customers must contact the company directly to receive any information. This makes sense, as each business has its own unique payroll needs, and therefore pricing should reflect only the services that the company requires.
In contrast, Knit makes its pricing publicly available online. Knit’s payroll and a lite version of its HR benefits platform are available for $39/month + $4/employee.
If you’re looking for both payroll and the entire HR suite, the cost is $39/month + $6/employee. These amounts also include unlimited pay runs, meaning that companies that run frequent payrolls or run off-cycle pay runs from time-to-time won’t incur additional fees above and beyond their monthly platform cost.
The Bottom Line
Both Knit and PSI Payroll are designed to handle the payroll of small to medium-sized businesses. The difference comes in when you compare the types of offerings. Knit has a complete online solution, where PSI solely provides offline resources to help you manage your payroll needs.
Knit’s software boasts an integrated payroll and HR platform for a single, affordable monthly price, giving you double the options for a lower cost. PSI’s pricing depends on specific company needs, and choosing this provider means that you are solely looking for payroll needs and nothing beyond that.
To find out how Knit compares to other payroll providers, read our full Guide to the Best Payroll Software in Canada.