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Payroll Administration

Definition: The administration of the financial record of employees' salaries, wages, bonuses, net pay, and deductions

An employer, regardless of the number of workers they employ, must maintain all records pertaining to payroll transactions for at least five years after the tax becomes due or are paid, whichever is later. Many kinds of employment records must be kept just to satisfy SARS requirements and in most instances failure to submit a return to SARS is a criminal offense.

Payroll Records include:

  • Name, address, Income Tax and ID number of each employee
  • Amount and date and details of income, benefits and deductions of each payslip
  • Monthly returns to SARS for Income tax deducted and paid over (EMP 201 Return)
  • Amount of Employees Tax Incentive claimed each month
  • Calculation of Medical Aid credits
  • Fringe benefits
  • Overtime Calculations
  • Leave and Termination Pay Rate Calculations
  • Market value and date of noncash compensation
  • Information about Leave and Sick pay
  • Employment Equity Reports
  • Unemployment Insurance Fund deductions
  • Dates and payments to employees for non-business services
  • Provident Fund Monthly Returns
  • Bargaining council monthly returns
  • Annual IRP5 Reconciliations
  • Annual OID returns

Payroll Administration can be quite a challenge for the new business owner. There are laws regulating what you have to track related to payroll. Failure to do so could result in heavy fines-or worse.

Many business owners use outsourced payroll services. This assists greatly with compliance of all the applicable laws.

We can assist with either an outsourced payroll system or supply, setup and training on your own Sage Pastel payroll program.