Welcome to Paymaster's May Newsletter!
Designed by Lezé
31 May 2022
The many Hats worn by Payroll Professionals
HAT 1: The Payroll Professional as Implementor of LEGISLATION!
The Payroll Professional is driven by Legislation.
Accountable Payroll professionals do nothing unless it is prescribed by LAW. Based on Legislative prescriptions, they will calculate basic pay, overtime and sick leave. Everything they do should be guided by legislation.
As the world increases its’ reliance on Automation Software, it is touted as the solution to all our problems. And this is largely true. Modern Payroll Software programs “hard code” what legislation requires. Such as tax deductions tables and many other statutory deductions.
While good software is essential to an efficient payroll department, there are exceptions where automation is unable to solve the problem. In this instance, a Payroll professional needs to interpret and implement delicate nuances embedded in legislation. For this reason, we strongly promote the skill and knowledge of the Payroll professional , who can make all the difference.
For example, when legislation requires an exception, resulting in a change to the payroll, the Payroll professional needs to check, and double check the new calculations being used. After this, they should explain the changes to their management team. They are now better-prepared to implement and create earnings-and -deductions calculations. These must be inline with the most accurate interpretations of the legislation governing these calculations. Now the payroll is ready to be signed off, at the end of each month.
Payroll professionals are rightly held accountable for accurate interpretation and implementation of legislation relating to the employer/employee relationship.
6 Laws that Govern the Employment Relationship
In South Africa, there are 6 laws that govern the employment relationship, and more than 700 Department of Labour (DOL) inspectors that visit businesses to ensure full compliance with every aspect of these laws. When a DOL inspector arrives at a business premises, they are most likely to visit the payroll department first. Payroll administrators will be asked to produce the following records:
- that show the company complies with the Basic Condition of Employment Act (ie. leave days, working and lunch hours, overtime, notice pay etc.)..
- that prove they comply with Industrial Council Agreements (ie. minimum wages, provident/pension funds and medical aid deductions).
- that the company has records of the prescribed monetary deductions for UIF, and that these deductions are submitted, on time, to the Receiver of Revenue (SARS). And not forgetting the monthly report that the DOL requires.
- that the company produces and keep records of all employees’ work contracts, and that payments to all workers are accurate. The company must also produce records of required authorisations and instructions relevant to the processing of these employee salaries.
- that the company double checks relevant Skills Development Levy (SDL) deductions.
- that the company is fully compliant with all provisions of the Employment Equity Act (and that these records are kept by the Payroll department).
South African Receiver of Revenue (SARS)
In this country, SARS requires the following:
- All Emp201 submissions are accurately calculated and processed – ON TIME!
- There must be records that show the company’s bi-annual and annual submissions, that prove to SARS that they are adhering to, and implementing all relevant laws that govern tax deduction.
- The accurate interpretation and implementation of all laws relevant to car allowances, pension funds, medical aid tax credits, and employment tax incentives.
Payroll Professionals – the Implementors of Legislation!
The Payroll professional carries the responsibility to ensure that the payroll is set up, and managed correctly. If called upon by management, or outside organisations, they should be able to prove that their company is “legal” and complies with all aspects of SARS and other relevant employment legislation. Non-compliance CANNOT be blamed on Automation Payroll Software. The onus is on the Payroll professional to ensure that by using all their expert knowledge and experience, the payroll they manage is fully compliant with the laws of the land.
Coming next... Hat 2: Accurate keeper of records.
- Provided by Ian Hurst -
How to extract a bank file
Once the payroll has been finalised and the run has closed, you can proceed to pay the employees by exporting a file from the Salary Payment File Screen. Based on the screen selections, the salary payment file will generate in the correct format for bank processing. Click below for directions on how to extract a bank file.
- Provided by Amber Stynes -
How to add a component to all employees
Components refer to the various payroll items on an employee’s record. This includes allowances, deductions, company contributions, fringe benefits, personal contributions and notes. Only components added on Company Level will be available on employee level. Editing a Company Payroll Component, provides extra options.
Please call our Helpdesk for your queries – 021 712 7333 email@example.com
How to add a position
The Position Management Screen stores the details of all available positions in the company. Once the positions have been created by you, the employees are linked on the Employee Position Screen. Click below for directions to add a position.
We are coming together to celebrate Karen and the 23 years she has dedicated to Paymaster and staff.
Congratulations on your Retirement!
Paymaster wishes you a stress-free, relaxing and well-deserved retirement! We are really going to miss you.
New Product Features
Innovation in payroll
Download your payslip instantly.
Pacey uses interactive messages which gives users a simpler and more consistent way to select the options available to them.
Interactive messages achieve significantly higher response rates compared to text-based lists.
Mandatory Leave Attachment Changes
Previously, when attachments were mandatory on a leave application, the system allowed an employee to submit the application without an attachment, this would then prompt an error with the final approver that an attachment is needed. This process allowed an employee to submit a sick leave application on the day to inform their manager that they are off sick. The manager would have an inbox entry to remind them to follow up on the sick note when the employee has returned to work. The manager would reject the application, requiring the employee to resubmit with the correct leave dates and a supporting attachment.
We were receiving many requests that the above process was not efficient as most employees seem to forget to attach a sick note when applying after they return to work, and the manager ended up always rejecting the application. The system has been enhanced to prompt an error when the employee tries to apply for a leave transaction, which requires a mandatory attachment before submission to an approver.
Our partnership with Floatpays is another way that Paymaster endeavors to deliver greater value to our clients.
Paymaster don’t just provide payslips, we also unlock the power of financial wellness at work through…
Enhance your employee value proposition with Floatpays. Help your staff build financial wellness through on-demand earned wage access, savings, financial education and practical tools to better manage their personal finances.
FloatPays has just launched a first-of-its-kind barometer, looking at the ‘State of Employee Wellbeing in South Africa’!
Read the below article, which is packed with insights and considerations for employers:
- Research background
- The evolution of employee wellbeing
- The state of employee wellbeing
- Employees’ met vs unmet needs
- The work environment and employee wellbeing
- Financial stress and employee wellbeing
Congratulations to our April competition Winner!
Annette Steyn from South African Farm Assured Meat Group, you are the winner of R500!
Thanks to everyone who participated!
Stay tuned for our next competition in June.
If you missed it, you can see the competition here:
Please follow the next competition on our social media channels