Compliance with payroll has emerged as one of the most challenging aspects of running a business in South Africa. As we all know, violations can render your company liable for more than just hefty fines; they can cost you your reputation among employees as well. Luckily at DuncanBrooke, we aid businesses in navigating these obstacles with minimal ramifications. Below is how you can stay compliant in terms of South African payroll regulations.

Know What Payroll Taxes Apply To You

Many types of payroll taxes need to be withheld and paid by the employer in South Africa, such as the Pay-As-You-Earn (PAYE), Unemployment Insurance Fund (UIF), and Skills Development Levy (SDL). These need to be paid over to South Africa’s Revenue Services (SARS).

Tip: Ensure you are well aware of the timelines provided by SARS so that you do not incur interest and penalties due to incorrect calculations.

Register For The Necessary Taxes

It is mandatory for employers to register for PAYE, UIF, SDL, and with the Department of Labour for WCA.

Tip: Having DuncanBrooke take care of your statutory registrations will save you a lot of hassle as we at DuncanBrooke are more than adept at ensuring your compliance.

Keep Records That Are Correct And Comprehensive

Complying with payroll requirements in South Africa is a sensitive matter where keeping proper records is essential. Employers should keep records of income paid to each employee, less any taxes withheld, and any benefits provided over the course of five years.

Tip: Pay attention to professional services or payroll software that aids in record keeping to reduce mistakes.

Follow New Developments in Regulations and Compliance

Legislation in South Africa regarding labor and taxes often changes. An organization should perform regular checks to ensure that their returns are aligned with the regulations and compliance set.

Tip: DuncanBrooke can assist you with compliance and offer a range of consulting services that will enable you to remain updated.

Make the Required Declarations

Employees are expected to make regular submissions to the South African Revenue Service, including declarations known as ‘EMP201’ and reconciliations of ‘EMP501’ every six months. Failing to meet the deadlines leads to penalties.

Tip: These returns can also be lodged with DuncanBrooke so you can have more free time and rest assured knowing it will be done correctly.

Adhere to the Minimum Wage Regulations

In South Africa, minimum wage laws apply to most industries. Be sure that your payroll systems take this into account to reduce the chances of litigation.

Tip: Regularly assess the employment contracts coupled with paycheck structures to ensure compliance.

Final Thoughts

The challenges posed by South African laws regarding payment of employees require patience and knowledge. Once you understand the requirements, keep track of all documents alongside changes in legislation, and you will be able to remain compliant and foster a good workplace culture.

At DuncanBrooke, our specialty lies in managing the payroll function with the aim of developing strategies that prevent noncompliance of your company. Give us a call today so we can help streamline your payroll procedures, contributing to your success.

Get a personal consultation.

Call us today at 011-568-1490