As a small or medium sized business, your company may have one to fifty employees. Managing the payroll can be a daunting task, riddled with pitfalls and risks. As such, we can ask the question and provide the answer to it – do you need to outsource your payroll? However, before getting into the reasons for choosing The Tax Shop, let us look at why you may need to outsource your payroll once we have looked at how to manage the payroll more effectively.
Become Deadline Driven
Don’t be caught off-guard by submission and payment deadlines. It is imperative to ensure that you submit tax returns, employee information and payments to UIF and SARS on time in order to avoid penalties. For such, invest in a proper system to notify you of important submission dates well in advance in order to get the preparation completed rather than realising at the last minute that certain administrative tasks must still be done.
Make Sure You Have Adequate Software Support
Do not skimp when it comes to something as important as payroll management software. If the software gives you any problems, you will have to do the explaining to the employees and to SARS. It is essential to have adequate technical and telephonic support available to ensure uptime and assistance in using the software. Also, don’t try to manage your payroll without any software. We live in an age where technology helps to streamline office tasks – make the best of such technologies. Payslips can be generated, records kept and leave applications managed more effectively using software.
Train Personnel to Use the Software
Although many of the functions can be automated, it is still essential to train your personnel in usage of the solution, including reporting features, calculations, payslip creation and tax return information provision.
Pay Attention to the Small Details
SARS is not lenient when it comes to mistakes regarding the payroll. It is therefore essential to keep up to date with legislative changes, SARS payroll and tax regulations and any requirements of statutory bodies. Make sure that you do not work on the principle of “close enough”. Every bit of detail must be correct including employee information such as address, date of birth, ID, tax number and more. Any mistakes made without correction will cause problems when it comes to leave administration and tax returns.
Always Have a Plan B
Late payment of salaries is an absolutely no-no. Indeed, the employees have the right to take the issue up with the Department of Labour. Avoid such conflicts by processing the payroll on time and by ensuring that there will be money to pay the employees. This means taking proactive steps to ensure adequate income before the employees must be paid. Send out the invoices early and follow up to ensure that payments are done before your salaries are due. That being said, the unforeseen can happen. With this in mind – have money ready for payment of at least two months salaries and don’t use the funds for anything else.
Set Up the Payroll Management System
For this you need to decide which employees are paid hourly and which ones get fixed salaries. Consistency is essential, also when determining when and how to pay the workers according to the classifications you have set-up for them, such as full-time, part-time, contract, intern and volunteer, or daily wage workers.
Resort to Outsourcing
If you have done the above and have realised how labour- and cost-intensive the process can be you may now agree that you need to outsource your payroll. For this, choose The Tax Shop. We have a national footprint and can handle part of the payroll and accounting management, provide consultation or handle the entire process, allowing you to focus on business growth rather than accounting, payroll and taxes.
Outsourcing Holds Several Benefits
The benefits include the following:
So, if you need to outsource your payroll, choose The Tax Shop for affordable and reliable solutions.