One of our clients has just undergone an audit by the department of labour and I thought it would be a great idea to share some of or learning points with you. It was a painless experience because we had prepared well and our record keeping was spot on.
1) Good preparation is the key. Try and find out what documents and records the department is looking for. Here is a possible list
a. Payroll records (check compliance with the relevant legislation)
b. Payment records and reports (UIF and SDL compliance)
c. Time sheets (overtime and working hours compliance)+
d. Contracts of employment
e. Copy of payslips (to check compliance with basic conditions of employment act)
NB all these documents should be kept for a minimum of five yearsand I would strongly suggest that if you can you keep this information as long as possible (Paymaster on line allows you to store all your payroll documents electronically on the internet saving you space and retrieval energy)
2) Make sure that all communication and requests for information is channeled through one company representative and brief all your staff that no documents are allowed to be handed over without the consent of the responsible person
3) Should any documents be handed over keep a list of theses documents and stamp them as duplicates The originals should always remain with you.
4) Be friendly, be nice they are only doing the work that they are expected to do. In any case if you are complying there is nothing to worry about
5) Lastly in speaking to the inspectors it seems that using a recognized payroll system makes their life a lot easier as they know that these payroll systems comply with all legislation. Paymaster guarantees that your payroll (outsourced or do it yourself) will comply with all relevant legislation)