icb payroll & monthly sars returns learning module 3

Record & Validate input variations on employee records

Learning Unit 3

ICB Junior Bookkeeper: Payroll & Monthly SARS Returns

Introduction PG 74

• Intelligent decision makers• HR department = improved

productivity• HR department = competitive

advantage• Growing legislative requirements• Productivity and business challenges• Integrated payroll system• Human resources competencies• Decision makers and timely

management information.


Verify & record employee remuneration contract terms PG 74

• Accuracy = removal of risks & inconvenience

• Verifiably accurate, correct & up to date• Highly skilled & qualified staff• Hidden expenses• Payroll admin encompasses all the tasks

involved in paying an organisation’s employees

• Handling payroll-related problems are part of payroll admin.


Getting started as a new employee• Labour statutes PG 75:

– Labour Relations Act– Occupational Health & Safety Act– Compensation for Occupational

Injuries & Diseases Act– Unemployment Insurance Act– Skills Development Act– Employment Equity Act


Getting started as a new employee continued

• Employment agreement PG 75

–Employment relationship–Terms & conditions–Intention of employer &

employees–Written form



• Employment Contract definition PG 75:

A legally enforceable agreement between two parties, where-by one party places his or her personal services at the disposal (and under the control) of the other party. This is for an indefinite or determined period, in exchange for a fixed or ascertainable wage.



• Elements of an employment contract are PG 75:

– A time agreement must exist– It must be permissible by law– The parties must have legal capacity– Employer must have the power to control– Employee must place his or her services at the

employer’s disposal– Remuneration must be paid and must be fixed or readily

ascertainable– There must be consensus between the parties– Parties must have serious intention to create reciprocal

rights and duties and be legally bound thereby



• Rights & duties employer & employees PG 76.

• Duties of one party constitute the rights of the other

• Basic Conditions of Employment Act provisions

• Update employment document• Letter of Appointment



• Elements of employment contract Pgs 76 & 77: Company’s full name & address Full name of employee Occupation of employee/brief job description Employee’s place of work Date employment commenced Ordinary days & hours of work Wage or salary rate Method of payment Rate of pay for overtime Description of other cash payments Payments in kind Frequency of payment Deductions Leave (annual, sick, maternity, family responsibility leave) Period of notice Council or sectorial determination


Compensation Package

• Basic compensation pg 94:

– Regular fixed pay– Pay incentives– benefits or indirect

compensation– Remuneration or benefits or

entitlements


Different types of remuneration Pgs 95 & 96

• Commission• Performance bonus• Profit sharing plans• Piece-rate plan• Standard hour plans• Employee benefits


Benefits mandated by law Pg 96

• Annual leave• Sick leave• Maternity leave• Family responsibility leave• Paid public holidays• UIF benefits• Compensation for injuries or

diseases contracted while working


Cost to Company Pg 98

• Advantages– Budget– Tax structuring– Equity– Severance packages– Changes in legislation


Cost to Company Pg98

• Disadvantages– Difficulty in understanding– Expensive to achieve pay

parity– Perceptions– Loyalty not retained– Cost of recruitment


C to C remuneration: Pg98

• Market related salary• Adequate cover for life,

disability & medical aid• Adequate provision for old

age• Unwelcome surprises from

SARS


Induction of Employees pg 100

• Expectations• Induction programme• Set out hours of work, wage

rates, overtime, policy on leave & public holidays

• Pay system• Pay routine• Follow up


Deductions: pg 100

• SDL• Loans• Savings• Training• Voluntary tax• Employee tax• UIF


Employee’s payroll record pg 101

• Human Resource Management System

• Distribution System Record

• Access Timecard System Record


Process records relating to employee movement pg 109

• New employee appointments

• Transfer of employees• Promotion of employees• Termination of service


New employee appointments & employee promotions pg 109 & 110

• Proper recruitment & selection procedures

• Amendments to payroll• Changes in payment rates• Excessive overtime claims• Valuable and useful background

information• Record of employee movements

within the organisation assist with decision making


New employee appointments & employee promotions continued

• Scrutiny• Trade unions• Common information• Employment policy & procedures• Payroll calendar• Deadlines• New employee information• Seasonal workers• Overtime• Master file record• Segregation of duties


Transfer of employees

• Change in classification pg 111

– Rank & status– Salary or wage– Benefits– Relocation to another area


TerminationPg 112

• Resignation, retirement, death• Retrenchment• Dismissal

– Misconduct– Poor performance– Illness or disability

• Desertion / absconding• Incompatibility• Employee leaves by agreement



Termination forms:• Withdrawal from pension or

provident fund• Banking details• Certified copies of personal

documents• Ill health discharge• Letter of resignation• Continuation with medical

aid


Termination PayPg 113

• Notice pay• Leave pay

Retrenchment pay

• Notice pay• Leave pay• Severance pay


±12 types of RemunerationPg 113

• Housing/accommodation• Payments in kind• Car allowance/company car• Medical aid• Funeral or death benefits• Cash payments• Overtime• Performance bonus• Non-discretionary 13th cheque• Non-tool allowance• Commissions• Other remunerations


Pay-out of “balance of leave”Pg 113

• If an employee resigns without giving notice, as required by law or in terms of their contract, they are in breach of contract. Notice pay not compulsory

• 3 weeks paid vacation leave unless employee is a casual.

• All payment must be effected through the PAYE scheme


Implement instructions from external agencies

Pg 116 & 117

• Compliance of deductions not to compromise employee

• Statutory or non-statutory• Insurance policies


Evaluate and record variations to payroll

Pg 117, 118 & 119

• Permanent & temporary variations

• Accuracy & reasonableness

• Analysed and queried


Permanent VariationsPg 118

• Change for at least one year

• Permanent or temporary worker

• Probation• Wage negotiation strategy


Essential for wage negotiations• Negotiator must have necessary

negotiating skills• Thorough preparation• Defined goals• Gather & analyse data• Devise a strategy• Strike rules• Right people & resources• Concessions• Calm, rational, impersonal, cordial &

focused• Deadlock = experienced mediator


Pg 121

Temporary variationsPg 121

• Absence from work• Hours worked• Special payments• Extra duty payments


Shift WorkPg 121

• BCEA does not define shift work

• Code of Good Practice on Arrangement of Working time describes different types of shift work


Absenteeism managementPg 122

• Temporary variation• 1 day absent = 3 days

salary• Hidden costs• Identify patterns• Leave administration• Doctors certificates


ConclusionPg 124

• Recording & validating employees records is very important

• Personnel file• Continuous updating• Changes in employee’s

personal details• Confidentiality


icb payroll & monthly sars returns learning module 3

Education