What is payroll?
Payroll is critical part of a business in that it pertains to all the salaries and the payments that involved with them. There is often confusion between payroll and HR (Human Resources). Payroll is the payments side of the department whereas HR is the more legal side of the department. HR is more to do with the people working for a business and payroll pays the people working for the business. BC Accounting Services (BCAS) does not handle any HR matters, but rather works closely with industry leading companies to provide the best possible advice.
Why is payroll so important?
In a simple and straight forward phrase, because if it does not happen no one gets paid and the deductions are not paid to SARS. The result, no one is happy!
Does payroll just pay the salaries?
Simply, No. There are other payments to be made. These are:
• Salaries to all members of staff,
• Pay as You Earn (PAYE),
• Unemployment Insurance Fund (UIF),
• Skills Development Levy (SDL).
The salaries are paid to the employee net of any deductions required by SARS. The employee deductions are withheld from the employee. These are paid over to SARS by the 7th of the following month. The payment to SARS is made on their online payment system e-filing.
UIF and SDL are a set percentage of the gross salary, whilst PAYE can vary greatly depending on what the employee is paid. These rates are all regulated by SARS and are reviewed every year in the Minister of Finance budget speech.
How can we make payroll less of a headache?
BC Accounting Services is able to complement your current payroll function but are equipped with the knowledge and expertise to run your complete payroll function. Typically, small to medium businesses have some a system that they use to calculate the salaries and deductions thereof. Unfortunately, that system is often lacking in some areas, secure pay slips for example. The critical one is the changing deductions rate. They often do not change it or change it incorrectly. This is where we step in to help. Taking over is not always the best way forward.
During the process typically we would:
• Contact you for the month’s information,
• Process that information,
• Send out pay slips,
• Send you the correct amounts to pay the employees
• The amount together with the reference number will be sent in order to pay SARS by the 7th of the following month.
Contact us for more information in this regard.
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