When it comes to payroll, no business that employs workers can be excluded from this obligation.
If you have people permanently employed, 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 referred 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 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 these legislations, serious consequences may lead to your closing down shop. This does sound daunting but luckily, there is a solution.
Payroll can be paid and managed by software. If you want you can also hire good accounting services Singapore that can handle all the accounting and taxes safely for you.
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 online as well, but what about the statutory taxes you might ask?
This online software is compliant with labor legislation 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.