Payroll is simple until the first mistake. Knowing the moving parts helps you choose a process, whether that is a bookkeeper, software or a custom system.
What every payroll run covers
Each month the same jobs repeat.
- Gross pay, overtime and deductions
- PAYE tax withheld from each employee
- UIF contributions, shared by employer and employee
- SDL where it applies to your payroll
- A payslip for every employee
What you must keep
Keep clear records of pay, leave and contributions, and file returns on time. Rates and thresholds change, so confirm current rules with SARS or your accountant.
When software helps
Once you have more than a few staff, software removes repeat typing, applies rates the same way every time and produces payslips and returns without rework.