Page 41 - DRG HR HANDBOOK- Nikita Pillay

PAYROLL MANAGEMENT

or every business owner, understanding the
basics of payroll and knowing how to manage
Fit efficiently is critical. By definition, payroll is
the business process of paying employees, SARS, and
third parties such as the service providers responsible
for various employee benefits.

A payroll system usually comprises calculating and
distributing salaries, following your payroll policy,
keeping payroll records, preparing financial reports
for stakeholders and employees with a breakdown of
payments, taxes, bonuses, overtimes, or holiday pays.

EMPLOYEE MORALE

Ensuring that you have a payroll system that pays your
employees in a timely manner on a consistent basis
will impact your employee morale. Late and inaccurate
payment is likely to cause your employees to question
the financial stability of the company. This might affect
the overall culture of your company, resulting in a
negative attitude from employees that could bleed into

their day-to-day tasks and cause underperformance.

REPUTATION

A company has a financial obligation to their employees
and must ensure that payroll activities are compliant
with the country’s tax and employment legislation.

Following legislative laws, efficiently meeting tax
obligations, and obtaining Letters of Good Standing,
establishes a company as a stable employer boosting
reputation.

ACCURACY IS VITAL!

Errors, whether they occur during calculations or in
payroll records, can lead to the wrong net pay issued
to employees or failed amounts of taxes paid to SARS.

Moreover, payroll goes into your business expenses,
so proper management of payroll affects the accuracy
of your business accounting.

Running a payroll in-house is very complex for
businesses. However, payroll management can be
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a pretty time-consuming task, especially if manual