BG455 Payroll Procedure Checklist
Taxco Business Guide
Admin in Business
Objective
The objective of this business guide is to assist you with running your payroll. No matter what package you use, a systematic approach is required and demonstrates the Taxco approach and how we can assist you with your payroll administration. Use and change this guide as a template to suit your own payroll procedures.
Payroll Procedures
1. Add all new employee details and make changes to existing employees personal details
a. Names or addresses, working hours and/or banking details.
2. Update changes to the payslip profile
a. Basic rate
b. Income and deduction profiles – remember you can add temporary income and deduction changes to the profiles by ticking the temporary indicator button.
c. In weekly and Bi-weekly payrolls the hours worked can be updated quickly and easily by running a batch.
d. Loan amounts can be changed by editing the loan in question. Please note when you change the amount in the payment field, it will remain at that value until it is changed again.
e. Overtime is updated in the overtime tab.
f. For weekly and bi-weekly payrolls – leave entered on the annual leave screen will be brought through automatically and paid.
g. For monthly payrolls – absent days or a portion thereof can be calculated and entered on the unpaid leave screen and brought through automatically as a negative earning.
3. Process your payslips
a. This can be done in two different ways:
i. If you wish to add payslips individually to each employee, click on the payslip tab and enter on the add payslip button. This will come up with a window which allows you to select the period (defaulting to the current period date) and the hour/days worked. This then takes you to a preview of the payslip which can be edited and saved.
ii. The employees’ payslip can be run in a batch by selecting batch run from the main toolbar. Select the period at the top and the employees to be processed by highlighting and choosing the “+” button at the bottom of the screen. Select the ‘Pay” button to complete the calculation.
4. Print your payslips for checking
a. To print your payslips click on “Batch Payslips” on the main tool bar. Select the period of payslips you wish to print and the employees by highlighting them and clicking on the ‘+’ sign at the bottom of the screen. Click on Print to sent them to the printer or, the new feature allows you to e-mail payslips to a third party.
5. Make corrections as required
a. If there are errors on one or two employees I would suggest that you go to the payslip tab, highlight the last payslip and click on edit. This will bring up the preview of the payslip and allow you to make corrections. Overtime and loans can only be change in their original setup screen. To do this you must first roll back the payslip make the necessary changes, and re calc the individual payslips.
b. You can roll back a whole batch of payslips but only if they were originally processed as a batch.
6. Reports
a. Choose the report option from the main tool bar. Make your selection from the list.
b. Once you are satisfied that your payroll is correct, print your EMP201 report and lock your data. This prevents further changes being made and ensures the amount paid over to SARS agrees with the printouts at the end of the year.
7. BACKUP NOW!!
To backup your data files exit your payroll program.
Go to the start – program file – Select – Backup and Restore. Choose the drive and directory if on your hard drive, although we recommend backing up to a stiffie or CD/DVD diskette which can be kept in a secure environment.
How can Taxco help?
We are added value resellers of VIP Payroll and Simple or Vanilla Payroll. Our professionals can help you make an informed decision to purchase the correct software, assist with the setup, training and implementation or offer you a complete online payroll solution from our offices. Contact us now to solve your payroll hassles.
This Guide is subject to the Terms and Conditions of Use of Taxco Services and their Website.
Frequently asked questions
- How can you save me from all the payroll hassles?
- How do employees get paid?
- What do I need to get started?
- Can I switch payroll providers mid-year?
- How do employees get payslips?
- How do I keep control of my payroll?
- What about reconciliations?
- What is UIF?
- Does a casual labourer have to pay UIF?
- Must overtime be included in the UIF calculation?
- What is SDL?
- Do directors of a company and members of a CC have to pay SDL?
- What is PAYE?
- What is OID?
How can you save me from all the payroll hassles?
There is nothing better than personal attention from a trusted professional who knows your business. We assist you to never miss a deadline and to never pay the wrong amount. We keep all your payroll information maintained and available.
How do employees get paid?
Net pay amounts can be directly deposited into employee bank accounts and payments made for all the statutory and other deductions on your behalf. We do the payroll, you concentrate on your business.
What do I need to get started?
All we need is your company and employee information and payroll history, if any, for this year. Call us to schedule an appointment to discuss your specific payroll requirements.
Can I switch payroll providers mid-year?
Yes, we can start your payroll anytime as long as you have records of your payroll history.
How do employees get payslips?
We can either email them to you, or directly to the employee. We do the same for the annual IRP5 or IT3.
How do I keep control of my payroll?
We will provide you with a variety of reports that will allow you to remain informed and in control of your payroll.
What about reconciliations?
We do the reconciliation and take care of the submission to SARS every six months as required. Tax certificates (IT3a/IRP5) must be issued to employees at the end of February each year, or when the employee leaves the employment of an employer during the tax year. An EMP501 reconciliation must also be completed and submitted to SARS at the end of each tax year (filing season is usually April and May). Tax certificates can be printed from the payroll. Our payroll also generates a file to import into e@syFile, so that you don't have to manually capture tax certificates.
What is UIF?
Unemployment Insurance Fund contributions are deducted and paid over on a monthly basis. UIF provides short-term payment to workers who are unemployed, or cannot work beacuase they are on maternity leave, ill, etc.
Employers have to regsiter with the UIF. Complete the UI-8 form and fax it to 012 337 1636. UIF will provide you with a registration number. Registration must be done within 14 days after becoming an employer.
The employee contributes 1% and the company contributes 1% every month. You need to pay over the contributions by the 7th of each month. If you pay over tax to SARS, then complete the EMP101 form and pay the UIF as part of your monthly EMP201 payment to SARS. If you are not registered with SARS, then pay UIF directly.
In addition to monthly payments, you need to declare your contrbutions to UIF. Our payroll can electronically submit this declaration to UIF (so, no need to complete those UI-19s manually). This declaration gives UIF all the information they need in terms of new and existing employees as well as employees leaving your employment.
Does a casual labourer have to pay UIF?
The act states that an employee working for more than 24 hours per month must contribute to the Unemployment Insurance Fund.
Must overtime be included in the UIF calculation?
Yes, it must be included.
What is SDL?
Skills Development Levy is a company contribution that employers must pay every month. The levy funds education and training through the SETAs.
Employers have to register with SARS by completing the EMP101 form if the total SDL leviable amount for the next 12 months will exceed R500 000. Registration must be done within 14 days after becoming an employer.
Payment of the 1% levy is due every month by the 7th and must be paid as part of your EMP201 payment to SARS.
Do directors of a company and members of a CC have to pay SDL?
Yes, all directors must be registered to pay SDL.
What is PAYE?
Employees' tax must be deducted from any payment made or benefit given to employees every month. The tax deducted on the payroll is seen as an advance payment of tax due by the individual at the end of the tax year.
Employers have to register with SARS by completing the EMP101 form within 14 days after becoming an employer.
Payment of PAYE is due every month by the 7th and must be paid as part of your EMP201 payment to SARS.
Tax certificates (IT3a/IRP5) must be issued to employees at the end of February each year, or when the employee leaves the employment of an employer during the tax year. An EMP501 reconciliation must also be completed and submitted to SARS at the end of each tax year (filing season is usually April and May). Tax certificates can be printed from the payroll. Our payroll also generates a file to import into e@syFile, so that you don't have to manually capture tax certificates.
What is OID?
The Compensation for Occupational Injuries and Diseases Act applies to all employers and casual and full-time workers who, as a result of a workplace accident or work related diseases are injured, disabled, killed or become ill. Payment includes payment for medical costs, termporary disablement, permanent disablement and fatalities.
Employers need to register with the Department of Labour by completing the W.As.2 form.
The W.As.8 is distributed during February/March each year and must be completed and submitted to the Department of Labour each year by 31 March.