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Use these ten functions to keep track of payroll administration so you don't over pay someone

by , 16 May 2014
When it comes to payroll administration, it's not just about the money that goes into your employees' bank accounts. There's much more to it than that.

Your total payroll expenses will include benefits like pension or medical aid contributions, leave pay outs, UIF and, most importantly, tax. If you don't keep a close eye on all of these payments, someone could get an accidental bonus.

That's why you need is a system and a structure to help you manage all of this. To do this, you can use these ten functions to keep track of your payroll administration.

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Does your CC follow the CC Act or the Companies Act?
 
Do it right or face penalties
 
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Keep track of your payroll with these ten functions

The Practical Accountancy Loose Leaf suggests using these ten functions manage payroll administration:
 
1. Recording leave taken by staff and approved by management.
2. Calculating PAYE, SDL and UIF payable per staff member and the total for the company per month.
3. Capturing or loading PAYE, SDL and UIF on eFiling on a monthly basis (EMP201 submissions).
4. Bi-annually payroll reconciliations to submit to SARS. (EMP501 and 601 submissions).
5. Issuing IRP5's to staff members annually.
6. Submitting Workman's Compensation return biannually.
7. Submitting UIF forms to the Department of Labour (DoL) for any staff changes.
8. Handling any ITA88 notifications from SARS relating to an employee.
9. All SARS queries relating to staff members, the business PAYE etc.
10. Loading payroll for staff members.
 
These ten functions will help you achieve these two key aims of payroll administration…
 
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What do SARS and CIPC say about accounting reports?
 
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The aims of payroll administration

1. Tax compliance (it helps you ensure you're following  the procedural and legal provisions of the taxing statutes); and
2. Help you identify all service providers you have an obligation to withhold employees' tax from.
 
If you can achieve those aims, your payroll administration is working well. And if you use these ten functions in your payroll programs, achieving those aims will be much easier. 
 


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