February is the last month in the tax year and the last chance to check and fix any issues in the payroll before Tax Year End. Please take time to check your payroll calculations and employee information. Tax laws change every year and these changes need to be implemented correctly in order to prevent SARS penalties later. 

Here is a list of specific areas that need to be considered:

• Employee records need to be complete. Identity Numbers, tax numbers, addresses etc are compulsory. Fix before the end of the month to speed up the time taken to submit SARS returns.
• Employer contributions to Bargaining Councils, elements of Funeral Funds and other benefits are fully taxable. 
• Retirement funds have tax benefits for employees that need to be setup correctly, especially if there are funeral and disability benefits included in the premiums.
• Personal Retirement Annuities can be added to the payroll to give staff a tax benefit.
• Medical Aid Premiums may need to be updated with the latest increase amounts and taxed correctly.
• The National Minimum Wage Rate now applies.
• Employment Tax Incentives are still available for employers to claim and this can be automated in the payroll.
• Uif declarations are required by the Department of Labour and this is an automatic extract from the payroll that is then emailed to declarations@labour.gov.za
• Payslips can be distributed electronically via email to all staff through the PayPdf module.
• Employee Self Service via a webPortal where staff can apply for leave, managers can approve leave and the payroll is updated. Staff and managers can also view payroll information, leading to less demand on payroll administrator’s resources.
• Banking interfaces can be setup to upload a batch rather than manually capturing net pay.
• Security Vulnerabilities need to be identified and fixed to prevent unauthorised access to records, ransomware, malware and other nightmare inducing triggers.
• Employment Equity Plans and reports need to be updated.
• Skills Development Plans and reports need to be updated before claiming from a SETA

How can we help you?

• Check your payroll calculations and do an Audit of Sars Payments to ensure your system is compliant.
• Assist with streamlining your payroll software to take advantage of legislation and automate any manual work being done, where possible.
• Assist with SARS submissions and rolling over to the new tax year.
• Training and advice.
• Helping you decide what Payroll and Hr product is most suitable to your needs and budget
• If the payroll function is overwhelming or confidentiality is an issue, consider outsourcing the payroll function to us. We tailor a service to suit your needs and provide the tools and expertise to assist you.

Please contact us if you require any assistance and remember that the biggest compliment you can pay us is to recommend us to your business contacts. We appreciate your referrals and look forward to helping you through the pending Tax Year End and Budget Speech proposals being announced this month.