If you have recently made the decision of moving to payroll processing software, or are thinking about incorporating it into your business, you might not be familiar with the correct way to calculate and process payroll. If this is the case, don’t worry, you’ve already made life far easier by enlisting or considering the help of payroll software. The rest is a fairly straightforward process.
So, to make your payroll process infinitely quicker and easier than ever before, use your payroll software to help you through these steps:
5 Steps to Payroll Simplicity
- Keep Information Up to DateBoth SARS and your employees don’t look too fondly on pay inaccuracies, which can cause problems that they really don’t need. So, before each pay period, ask your employees to check their payment information (addresses, salaries, etc.) to ensure that everything is correct.
- Gather Payment InformationNext, you need to ensure that you are paying the right amount for the payment period. If your staff works on hourly wages, this means tallying their hours for the period. If your employees receive set salaries, ensure that you take factors such as overtime, bonuses, leave days, and commission into account.
- Calculate Gross SalariesUse the information that you gathered in Step 2 to calculate the specific salary for each of your employees over the payment period. This could be slightly more than their base salary as a result of overtime and commission, or it could be slightly less as a result of unpaid leave.
- Determine Pay WithholdingsNow that you know the gross figures for each of your employees, you need to determine the deductions. As an employer you need to deduct the correct amount of tax from your employees’ salaries and submit it to SARS. You also need to make various other deductions from your employees’ gross salaries, depending on the benefits you offer as an employer. These could be for medical aid or a retirement fund. And, of course, remember to deduct for UIF.
- Create a Payslip and Distribute the Salary AccordinglyAll of the information in terms of additional income and deductions should be clearly noted on a payslip, which you give to your employees confidentially. You then need to pay them the correct amount for the payment period, often via electronic fund transfer, and make the appropriate submissions to SARS and any other beneficiaries.
Quick Payroll Brings Ease to Your Payroll Process
These steps have been laid out very simply, and, if you are doing all of this manually, you might not agree with this simplicity. But, with our payroll processing software, we assure you that the whole payroll process really can be this quick and easy.
With tools and features that take the complications out of the process and make each of the above steps far easier, Quick Payroll is the solution you’ve been looking for.
For more on how our software can help ease the payroll process, please contact us on our website or call 0861 726 657 today!