My Finance Partner provides a complete, outsourced payroll solution that is perfectly suited to start-ups, as well as small and/or medium-sized companies that do not need a full-time resource or would like to keep the details of staff earnings confidential.
Understanding Payroll
PAYE
The long name is Pay As You Earn – this will appear on your employees payslip as PAYE. This deduction is a form of tax that is administered through companies. They are the ones responsible for deducting this monthly tax from employees’ earnings, which is payable to SARS. It is the employer’s responsibility to register for PAYE with SARS on behalf of the employee, this is normally handled by the person handling your payroll.
UIF
The Unemployment Insurance Fund is a relief scheme that provides short-term benefits to contributors that are unemployed after being recently terminated, or unable to work because of something like maternity leave, for example. UIF contributions, like PAYE are deducted monthly from employees remuneration.
Employees are only exempt from paying UIF if:
The employees work less than 24 hours a month
They are the President or any other government official
They are independent contractors
Workmen’s Compensation
Workmen’s Compensation is an annual requirement of The Compensation for Occupational Injuries and Diseases Act. The scheme is designed to help employers avoid large, unexpected payouts and medical bills for injuries acquired while employees are on duty. As an employer you are obligated to apply for Workmen’s Compensation, if you have more than one employee.
Each year companies are assessed and pay fees based on employees earnings and the risks associated with their duties. Fees are subject to change based on increases of decreases in claims and there is the possibility of rebates for decreases in costs.
Cooperation with Workmen’s Compensation earns you a certificate of good standing, which some customers (especially in cases Tender applications) require to do business with you.
The Payroll Function
Payroll is a fundamental business function of any business with employees, it is the process that allows these employees to get paid either weekly (wages) or monthly (salaries). Although, on the surface it may appear to be a very straight forward job description, the payroll function is highly specialised and can be quite complex.
Payroll involves:
Capturing payroll data
Balancing & reconciling this data
Preparing tax reports
Processing deductions and benefits
Record keeping & reporting
Preparing payslips
Processing leave, benefits & incentives
Costings for new employee packages & amendments of existing packages
The list can go on, this is why your payroll professional should be certified, thorough and up-to-date with the relevant legislation, including tax law to ensure 100% compliance.
The treatment of certain benefits is constantly changing and it can be difficult to stay on top of these things as a business owner with so many other things on the go. Leave your payroll in the hands of trusted experts that are guaranteed to stay abreast of change, contact us at info@mfpartner.co.za
Work with Payroll Professionals
Our monthly services include:
Processing of wage and/or salary payroll
Supplying payslips and monthly payroll reports
Monthly return submissions to relevant statutory bodies
Bi-annual EMP501 submissions
Registrations with the Department of Labour for UIF and Workman’s Compensation
Annual Workmen’s Compensation Return Submission
Pay a fixed monthly fee and ensure that your monthly tasks are taken care of, contact us to prepare a custom package made to fit your needs. info@mfpartner.co.za