For many businesses, the ever-increasing burden of legislation affecting the payroll has become very problematic. There has been a dramatic rise in penalties for non-compliance with current legislation as companies fail to keep up with the changes. Many businesses simply do not have the in-house resources to ensure continued compliance and efficient execution of the payroll function and are switching to outsourcing to relieve the burden. There is much to be gained by outsourcing the payroll function. Consider that:
- It can cost you less if you outsource instead of maintaining in-house systems and infrastructure.
- If you outsource, output won’t be affected by leave and illnesses. You don’t need to fret when the holiday season approaches. The payroll will be run on time.
- The risk of exposing confidential information to unauthorised personnel is eliminated. You also don’t need to spend time and energy on closely supervising payroll activities.
Bear in mind also that payroll administration is not a core function of any business and that by outsourcing staff can be deployed more efficiently since they are relieved of unnecessary routine administration and can contribute productively to running a profitable business. This routine administration is put into perspective if one considers the extent of the work involved in complying with the legal requirementsassociated with Pay As You Earn (PAYE), the Unemployment Insurance Fund (UIF), the Skills Development Levy (SDL)and the Compensation Fund. WE HAVE THE EXPERTISE AND THE DRIVE TO LET YOU REAP THESE BENEFITS AND GIVE YOU PEACE OF MIND! Aside from ensuring that the necessary systems are maintained and the various deductions made monthly, payroll staff have to do the following:
- Declare all taxes and levies monthly on an EMP201 form ,submit this form to SARS and pay the liability by the 7th of the following month. Late submission or payment is subject to a 10% penalty of the liability amount for the period.
- Reconcile all forms and declarations six-monthly on an EMP501 form via SARS’s Easyfile system. The first reconciliation period is for August and the second is for February. At the February reconciliation the annual IRP5’s must also be produced and distributed to employees. Late submission of the EMP501 is subject to a 10% penalty of the liability amount.
- Complete in full and submit by 31 March of each year the return of earnings form (WAS.8) issued by the Compensation Commissioner. It is the responsibility of employers to ensure that they are in receipt of the form which is issued by 31 January every year.
- Submit all new registrations and changes in the payroll to the Department of Labour on a UI-19 form.
Ask yourself if time and effort really need to be spent on these activities and then give serious thought to the benefits of outsourcing your payroll administration.Your payroll should not be a monthly burden. Let us do the job for you! It could really be worth your while. For additional informationor a FREE consultation, please contact Maryke van Wyk (Payroll), Andrea Vink (Tax Department) or Vanessa King (Tax Department) at 021 88 66 225 before 31 October 2012.