10 Common Payroll mistakes

 

diagram of 10 Most Common Payroll Mistakes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payroll vs Excel

Still doing Payroll calculations on Excel? 

Rather use 

Excel may seem to be an easy way to do a payroll,

but is cumbersome and error prone when compared to a structured payroll system.

                                                                                      Excel example payslip                 SuperPay example payslip

Reasons to use SuperPay over Excel

  

Excel SuperPay

Manually create formulas therefore the risk of errors with formula = Possible trouble

Can’t always see errors in Excel only when SARS comes calling

Automatic calculations

and deductions,

According to structured rules

Manually create IRP5 in Easyfile

and do SARS recons after adding together

the payslips or the monthy payrolls

EMP201 report for the year

to IRP5 reconciliation process,

& exporting data for Easyfile

Manually create payslips each MONTH

Cumbersome and error prone process

Automatic payslips

Bulk email payslips as a PDF with a password

Extracting information for reports is time consuming. Reports creation cumbersome

Run reports with a click of a button, or export to Excel for manipulation, if required

 

How does Payroll work

How does Payroll Work?  

   Load Employee Data & Payment details

              Enter all the personal information on your employee in to the payroll system, their salary or hourly wage rate

                       How they are paid (EFT, Cash or cheque) and their banking details

   Automatically calculate & deduct

                   The payroll system will do all the calculations and deductions according to rules, for that specific period. 

                  Payslips (a statutory requirement) are reports available after preparing the payroll, and can be emailed as a PDF with a password on it.

                    A Leave system to record days taken and automatically add days by rule, to track leave due

   Run Reports and verify

                   Run reports using the static employee data and the dynamic monthly information in the system, for example generate a :

                   Transfer list of all employee being paid by EFT

                List of Cheque or Cash Payments, incl a list of the notes and coinage required

                EMP201 reports to complete the SARS efiling reports

                  Provident / Pension Fund deduction report  

  Roll the Payroll forward into next month

            The payroll program will carry forward all relevant figures to the Year to Date totals and prepare for input of the next month. There are no need to calculate or do anything, but to click on a button

 

 

Medical Aid deductions

Medial aid scheme deductions

Articles

SARS ARTICLE - MEDICAL SCHEME FEES TAX CREDIT

Medical Tax Credit

Taxpayers who belongs to a medical aid scheme is entitled to a medical scheme tax credit, set at a fixed amount per month per main member (R+-250)and a lessor amount for each dependent.

The tax credit is applied  after  calculating tax from the taxable income, in the same way as the primary rebate

Tax Payer over 65 are treated this way as well, from the  2014.5 tax year

Due to the many changes to the medical deductions / credits each and every year, there is some confusion, and many of the articles are at some or other point correct and also out of date at the same time.

If your medical expenses exceed a certain amount – 4 times the tax credit allowed in a tax year but limited to 7.5% of the taxable income – and 25% of the amount is allowed as a deduction.

 

LiveZilla Live Chat Software
LiveZilla Live Chat Software
LiveZilla Live Chat Software
LiveZilla Live Chat Software