When it comes to payroll, no business that employsworkers can be excluded from this obligation. If you have people permanentlyemployed, you have to subtract taxes and as a business entity, you have to pay these taxes to SARS.No matter what size your business, there are many ways to handle a payroll system.
Firstly, we have to establish what is refer to as payroll. Payroll, from a company’s point of view, is the total of all financial records of salaries, wages, and bonuses paid to an employee as well as the deductions. From an accounting point of view, it is the amount paid to employees for services provided over a certain period.
The reason why it is so important to calculate all payroll correctly is that a business needs to pay these statutory taxes over to The South AfricanRevenue Service (SARS) before a certain time in the month. The other aspect is that the taxes and salaries paid are a big expense and will have an impact on the net income of a company and its budget.
The statutory tax that must be paid includes SDL, PAYE, and UIF. These taxes are calculated according to certain values and the UIF must be declared to the Department of Labour. If you should fail to comply with theses legislations, serious consequences may lead to you closing down shop.
This does sound daunting butluckily, there is a solution. Payroll can be paid and managed by software. These software solutions have been designed for people who do not have an accounting background. The payroll jargon has been made simple, so that every user understands it.You are able to pay employees on line as well, but what about the statutory taxes you might ask?
This online software is compliant with labour legislation with SARS and therefore you need not be concerned. All values regarding the statutory taxes are calculated automatically and you are able to declare your UIF declaration to the Department of Labour directly.You will also be able to set up benefits like provident funds, retirement annuities, and medical aids.
Preferred Solutions is a leading provider of professional Payroll software solutionsfor customers throughout South Africa.