Payroll is one of the most complex accounting tasks faced by companies. Even a small company with just a few employees faces tightly regulated payroll processes. The labour law regulations, SARS and other statutory requirements associated with payroll can become a headache – very quickly.
This is especially true if payroll is not done with attention to error-free entries in the payroll software as well as complete and accurate reporting, documentation filing and upkeep – from the start.
Payroll expertise:
Traditionally a time-consuming bookkeeping duty, payroll has been made easier with payroll software (incorporated in or integrated with most accounting packages). That said, technology has created a minefield of auditable details and situations where a mistake can cause a cascade of increasing errors down the line.
This has led to a proliferation of Payroll companies. These companies are either dedicated payroll experts, or accounting companies that include payroll services – including HR, statutory, PAYE, labour regulation and documentation tasks and services. The payroll expertise they offer will ensure error-free (and penalty-free) payroll process.
Payroll companies’ fees save you money:
Although payroll companies exist to save you time and money, they charge according to the expertise they retain and what they can offer you.
Payroll companies charge for:
- Implementing the monthly, bi-monthly, or other period, payroll process
- Payroll process administration
- Monthly and bi-annual payroll administration – including pay-lists, submission to the UIF office, monthly PAYE returns to SARS and IRP reconciliations.
Fees can be charged per hour or on a monthly retainer basis. Usually monthly retainers are more cost-effective, as they allow for task volume fluctuations. Monthly retainers would be adjustable according to the average number of employees being dealt with over a period of time.
All payroll companies, the services they offer, and the fees they charge, are subject to regulation by the South African Payroll Association (SAPA)
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