icb payroll & monthsly sars returns learning module 4

Basic Conditions of Employment

Learning Unit 4Pg 127

ICB Junior Bookkeeper: Payroll & Monthly SARS Returns

BCEAPage 127

• Exploited labour• Unfair labour practices• Purpose of the act:

– Enhance economic development & social justice in South Africa by creating and regulating an environment conducive to fair labour practices.


BCEApg 127

• SA is a member state of the International Labour Organisation– Every member to put in place an Act that regulates

basic conditions of employment– Act applies to all workers & employers except for:

• Members of the National Defence Force• National Intelligence Agency• SA Secret Service• Unpaid volunteers working for charities


BCEApg 127

• Act regulating working hours does not apply to:– Workers in senior management– Sales staff who travel and regulate their own working

hours– Workers who work less than 24 hours in a month– Workers who earn more than R183,008 per year


Duties of the employer• All employers

– Exceptions

• Employers with 5 or more workers– Two documents:

• Written particulars of employment• Pay slip

– Employee record– Display BCEA


Normal Time & Overtimepgs 128 - 129

Ordinary hours of work

Overtime

Sunday work

Night work

Public holidays

Compressed workweek

Averaging out working hours


Practice Exercise 4A Pg 131

Role of the Ministerpg 132

• Prescribe by regulation maximum permitted hours of work (including overtime)

• Regulation MAY NOT prescribe maximum hours in excess permitted by the Act

• Regulation may be made only on advice and consultation


Meal Intervalspg 132

• 5 hours work = a meal interval of 1 hour• Employee may be required to perform duties• Remuneration for meal intervals• Continuous work• Agreement to change meal interval


Daily and weekly rest periodspg 132

• Daily rest period = 12 consecutive hours– Can be reduced to 10 by agreement

• If employee lives on premises• Has a meal interval of at least three hours

• Weekly rest period = 36 consecutive hours• Can be over-ridden by an agreement

– Rest period of 60 consecutive hours every two weeks– Rest period reduced in one week if extended in the next week.


Leave types and accumulationpg 133 - 135

• Annual leave• Sick leave• Maternity leave• Family responsibility leave• Unpaid leave


Practice Exercise 4B Pg 134

Remuneration includes the following:pg 135

• Housing/accommodation• Company car• Travel allowance• Cash payments• Fringe benefits• Employers’ contributions• Allowances


Remuneration excludes the following:pg 136

• Allowances or payments in kind• Relocation• Gratuities• Share incentive schemes• Discretionary payments• Education• Reimbursable travel• Medical aid fringe benefits• Company contribution to social club or private group insurance scheme• Payments by employer to OID, RSC, SDL or UIF


Payment for leavepg 136 - 137

• Remuneration must not be less when employee on leave than when employee at work

• Cash payment must be included in remuneration for leave purposes

• fluctuating payments calculated over 13 week period or any other period that is fair and equitable

• Excess annual leave• Leave accumulation


Leave Accumulationpg 137

• Law states minimum number of days leave• Some companies insist leave must be taken at

one time• Leave can be broken down into annual and/or

accumulated

Recording & Validating employee recordspg 140

• Personnel files/information• Kept in a fire proof safe• Agreement of confidentiality• Security measures• Documents should be hand-delivered in sealed

folder


Accurate recordspg 140 - 142

• Statutory records– BACE– IRP5– Remuneration register– UI-19

• Non statutory requirements• How and why records kept• Verification of data


Statutory requirementspg 140

• BCEA– Employee’s name & job– Amount of time worked– Amount paid– Date of birth of workers under the age of 18


Statutory requirementspg 140 - 141

• Income Tax Act (IRP5)– First two names– Surname– Identification/passport number– DOB– Income tax number– Residential address– Employee number– Period employed– Income sources– deductions


Unemployment Insurance Fundpg 141

• UI-19– Employee’s name– Surname– Personnel number– Identification number– Gross remuneration– Frequency of payment– Contribution amount– Commencement date– Termination date– Reason for termination


Non-statutory requirementspg 141

• Employee’s:– Contract of employment– Curriculum vitae– Marital status– Number of dependants– Bank details


How & why records are keptpg 141 - 142

• Confidentially in safe, fireproof storage• Alphabetical order• File contains:

– CV– Certified copies of qualifications & degrees– Certified copy of identification– Bank details– Letter of appointment– Leave forms– Letters of increment– Medical aid membership– Pension fund– UIF


Verification of datapg 142

• Verify information for accuracy• Check copies against originals• Checker must be checked• Discrepancies reported to line manager


icb payroll & monthsly sars returns learning module 4

Education

payroll monthly sars

uif icb junior bookkeeper

year icb junior bookkeeper

time leave

consecutive hours

working hours workers

maximum hours

hours weekly rest period