Payslips are a legal requirement for any business that employs the services of people – even if it is only one individual staff member. There needs to be physical documentation that work has been completed and that the employee has been paid for it. In return, this also validates that employees are working for a respectable business and earning a set amount of money each month. Managing this process can be tedious and result in a lot of added administration if you don’t have a dedicated human resources person or accountant. By utilising payslip software – most of the grunt work is done for you. Here are four reasons why your small business can’t afford not to have payslip software:
For the love of your employees – a payslip is paramount to get ahead in life.
Surely you would never hire a full-time employee for you small business and expect them to work for free. Unfortunately, if you fail to supply them with a payslip at the end of each month you might as well run a sweatshop. Not only is it illegal to not give your workers a payslip but you are also denying them the opportunity to acquire a car, property and any form of credit or investment. A payslip is also essential to obtain a visa for overseas travel or to claim UIF when going on maternity leave.
A payslip acts as proof that your employees have a permanent job with an agreed upon remuneration for the work they do for you. A payslip also provides a breakdown of deductions for UIF, income tax owed to SARS, and other contributions like medical aid. This provides your employees with a clear indication of what they can claim back when submitting their income tax return.
Always be compliant and avoid getting into trouble when the tax man comes a-knocking.
As with many other business processes, the managing of payslips is a task that has to be done according to the books. According to the Department of Labour, there is essential information that has to appear on a payslip to ensure that it is compliant with the tax regulations:
- Employee’s name and address
- Occupation or position
- Total salary amount
- Payment period
- Deductions (tax, UIF, etc.)
- Any overtime hours worked
- Leave days due
Failing to provide an employee with all of the abovementioned information will get you in hot water with SARS – not to mention your employees. If their life-long dream of buying a car is shattered by a bank refusing them financing due to an incomplete payslip, it will unfortunately, be on your head.Payslip software is a great tool to help ensure that your small business complies with SARS regulations. By automatically importing employee information onto the payslip and ensuring that all relevant fields are covered there’s no need for concern when it comes to compliance. You know that every payslip is filled out correctly every month.
Eliminate a lot of hassle and late nights by using payslip software.
Manually filling in the relevant information onto every payslip at the end of every month becomes another dreaded task that will most likely be at the bottom of your priority list. As mentioned above, this is one area where you can’t afford to slip up or hand out payslips late. But fear not;payslip software does the work for you. Automating the entire process means that with minimum effort you can prepare and send out accurate payslips on time, every time. Our easy-to-use online payroll system provides you with a salary schedule that contains all salaries and tax due. Every payslip will also have your company logo on it and because we’re online, you can generate payslips anywhere at any time.