Paymaster Payroll technology keeps you compliant
Paymaster’s cutting edge payroll software ensures your company remains compliant with the many laws and regulations that govern the employment relationship in South Africa. (ie. Basic Conditions of Employment Act and Labour Relations Act). Failure to comply with all these laws will lead to penalties that will impact your bottom line.
Our payroll software is constantly monitoring the latest regulatory changes and checking clients’ data information. This way your company is prepared and able to make the necessary changes to your payroll to keep you compliant.
Our payroll technological offering is flexible, and designed to adapt to suit your business’ needs. And as you grow and your requirements change, we adjust the payroll service to continue serving your needs perfectly.
Here are 10 points that you need to remember to stay compliant (these all impact your payroll):
1. REGISTER FOR DEDUCTIONS
All employees must be registered for :
- PAYE (tax deducted from employees)
- SDL (skills development levy – you deduct- pay to educational training authority)
- UIF (unemployment insurance fund)
- And, your company must be registered for company tax and VAT.
2. BARGAINING COUNCIL REQUIREMENTS
Depending on the industry, your business may be governed by a bargaining council agreement. This would dictate minimum wages payable for employees (although some industries do not have a minimum wage). This agreement would include hours of work, overtime rates etc. Failure to comply will lead to penalties.
3. CONTRACT OF EMPLOYMENT
The BCEA stipulates that each employee must have a written contract of employment from the company. This should include notice period, annual leave, pay rates etc. Inspectors from the Department of Labour will check for compliance regularly.
4. CLASSIFIED AS AN EMPLOYEE
In South Africa, you are considered an employee if you work for more than 24 hours a month. This means you are covered by employment laws.
5. CALCULATING LEAVE PAY
Normal pay is calculated by multiplying the hourly rate by the number of hours worked. Leave pay is calculated as the average rate over the last 3 months ( must include overtime and commission received by the employee).
6. RESPECT THE DEADLINES
On the 7th of each month, your company must submit tax, UIF and SDL returns ( EMP201) to SARS, and pay the amounts due. No exceptions to the deadline will be considered. (Late submissions incur penalties of 10% of the total outstanding amount.)
In August you submit the 6-month reconciliation and the annual recon. in April/May.
Workmen’s compensation returns are due in March.
All these are deductions made from your payroll.
It is obvious that good payroll software will help you stay compliant, and prevent headaches.
7. SAVE RECORDS
Employee records must be kept by the employer, for a minimum of 5 years. These documents include timesheets, payslips and contracts of employments. Electronic copies are allowed.
Any documents linked to SARS are best kept indefinitely.
8. EMPLOYMENT EQUITY
This is an important issue in the South African work environment. Every 6 months large companies must submit progress reports to the Department of Labour. For smaller companies, it is once a year.
9. SA BANKING
South Africa has a sophisticated banking system that is comparable to international electronic transfer systems. If the transfer is done by 3pm, the money will be available to the employee by midnight.
10. THE 7 LAWS THAT GOVERN EMPLOYMENT
South African workers are informed about their rights, and expect the payroll department/service provider to deliver error-free pay runs.
Here are 7 laws that regulate the employment relationship in South Africa:
- Basic Conditions of
- Employment Act
- Labour Relations Act
- Unemployment Insurance Act
- Health and Safety Act
- Workmen’s Compensation Act
- Income Tax Act
- Skills Development Act
Another reason to switch to Paymaster for your payroll needs.
Contact Paymaster to explore the software that will keep you compliant, and able to focus on the core business of your company.