Why your company should outsource payroll services
Even the most meticulous and experienced professionals find that payroll can be a headache. Slap on a stiff penalty for a tax filing omission, and now we’re talking a full-blown financially-induced migraine.
For many businesses, payroll services offer an attractive and valuable alternative to in-house processing. Chosen correctly, they provide a less expensive, simpler means of paying your employees, filing taxes, and performing a host of other duties and HR services.
In truth, smaller firms with a stable salaried staff and minimal changes in tax obligations may well be better off processing internally. It can certainly be more convenient and efficient if your needs are straightforward. But many ultimately discover it’s not all that cheap – especially when you factor in the time spent managing the process.
Plus, without the proper knowledge of payroll procedure and access to a sound payroll program, it’s easy to make mistakes. SARS needs to be paid in full, on time, and in the proper manner. Late payments are cause of monetary penalties.
Using payroll services generally makes sense if your payroll changes with each pay period. If your company has employees working varying amounts of hours each week or has a significant turnover rate, a payroll service can be a time-saving and cost-effective alternative to internal processing. On the other hand, if your payroll expenses are quite stable, you may find handling payroll internally to be just fine for your needs.
Payroll services offered by SKMC
- Processing of monthly, fortnightly or weekly payrolls.
- Processing of electronic payslips.
- Electronic monthly filing of statutory EMP201 PAYE/UIF/SDLreturns with SARS.
- Electronic submission of UIF reports.
- Management and monthly payroll reports.
- Annual & Bi-annual reconciliation of payroll with SARS.
- Processing, reconciliation and submission of EMP501 year end report with SARS.
- Generation of IRP5 and IT3(a) Tax Certificates.
- Salary structuring advice.