Payroll Services
Stress Less on Payday with Seamless Payroll Services Tailored to Your Business
OVERVIEW
Accuracy, Compliance, and Peace of Mind.
A healthy, growing company means an increasing number of team members and along with this, an expanding payroll. Managing this process and its administrative tasks becomes increasingly important. You don’t want to get to payday and not be sure what salary to pay your employees, or what should be paid to third parties.
OCFO takes care of payday, amongst other payroll functions, with some of the best outsourced payroll services around. From processing to reporting, our professional payroll services team are focused on leveraging best-in-class software to provide quality payroll services you can trust and rely on.
Focus on growing your business without the administrative burden and compliance pressures that go hand in hand with payroll administration. Read more about our payroll services below.
Payroll Services we offer to South African businesses
Outsourced CFO offers comprehensive payroll solutions designed to simplify payroll management while ensuring full compliance with South African regulations.
Our services include:
- Payroll Setup: Smooth implementation of payroll systems customized for your business.
- Monthly Processing and Reports: Accurate and timely payslip generation, deductions, and salary disbursements.
- Tax and Levy Registrations and Submissions: Full compliance with PAYE, UIF, SDL, and COIDA requirements.
- Employee Records Management: Efficient handling of all employee data.
- Statutory Submissions: Monthly EMP 201 submissions, Bi -Annual, Annual EMP501 Submissions and annual COIDA returns
Contact our team with any of your payroll queries, and a consultant will be in touch within 24 hours
Get in touch for seamless, compliant payroll services that free you to focus on your business’ growth.
WHAT’S INCLUDED
Get access to great bookkeeping and accounting professionals
What is payroll and what does it entail?
Payroll is the process of paying remuneration to the employees of a company.
A payroll system can be used to keep track of employees’ remuneration, benefits, deductions and leave balances along with any company contributions made in respect of that employee.
Payroll is made up of the following areas:
Gross salary
The gross salary of an employee is the amount of money that an employee is entitled to on a monthly basis before deductions and benefits are taken into account.
This amount is usually fixed, and any percentage increase given by a company is based on this amount.
Company Contributions
Company contributions are benefits that the employer gives to an employee over and above the gross salary earned. These benefits are not standard and every employer may have different benefits for their employers.
These company contributions can include, but are not limited to:
- Medical aid contributions
- Retirement fund / pension scheme contributions
- Paid vacation, sick and family responsibility leave (legally required)
- Company UIF, SDL and COIDA contributions (legally required)
Payroll deductions
Payroll deductions are deductions made from an employee’s gross salary. The purpose of the deduction is that the employer may directly pay these deductions over to third parties on behalf of the employee. These deductions include, but are not limited to:
- Income tax (PAYE)
- Employee UIF contribution
- Garnish/maintenance orders
- Employee medical aid or retirement/pension fund contributions
What should an employer be registered for?
Pay As You Earn (PAYE)
Every employee that is employed in South Africa is liable to pay income tax on their earnings if their earnings are above a threshold that the government will declare each financial year.
PAYE is deducted from an employee’s salary every month to ensure that individuals do not have one big liability at financial year-end, but that the income tax is paid over to SARS in 12 monthly installments. Every company that deducts PAYE from their employees’ salaries should be registered for PAYE. This registration can be done on e-filing. PAYE is declared to SARS every month via the submission of an EMP201 return.
Skills Development Levy (SDL)
SDL is a levy that is imposed on employers to encourage learning and development in South Africa. The amount payable is determined by an employer’s remuneration bill. Only employers who pay a total of more than R500,000 in 12 months are liable to register for, and pay, SDL. SDL is payable at 1% of the total amount paid in salaries to employees. SDL registrations can be done via e-filing. SDL is declared to SARS every month via the submission of an EMP201 return.
Unemployment Insurance Fund (UIF)
The UIF is a fund that gives relief to employees who become unemployed after working for an employer who contributed to the UIF. Employees are only able to claim from the UIF when they become unemployed due to retrenchment, the end of a contract, maternity leave, adoption or parental leave, or illness. The UIF also provides relief to the dependents of a deceased contributor. Both the employee and the employer are liable to pay 1% of the employee’s remuneration. UIF is capped at 177.12 per month, and has a Employee and Employer Contribution. UIF is declared to SARS every month via the submission of an EMP201 return. imposed on employers to encourage learning and development in South Africa. The amount payable is determined by an employer’s remuneration bill. Only employers who pay a total of more than R500,000 in 12 months are liable to register for, and pay, SDL. SDL is payable at 1% of the total amount paid in salaries to employees. SDL registrations can be done via e-filing. SDL is declared to SARS every month via the submission of an EMP201 return.
Compensation for Occupational Injuries and Diseases (COIDA)
The objective of COIDA is to provide compensation to employees who became disabled due to occupational injuries or diseases, or for death as a result of injuries or diseases contracted by the employee during his/her course of employment. Employers should register for COIDA within seven days after the first employee was employed. COIDA is submitted and paid by a yearly Return of Earnings on the basis of a percentage or fixed rate of the annual earnings of employees.
TESTIMONIALS
What Our Clients Say.
Entrepreneurs change the world. They create growth, job opportunities and social impact. We serve entrepreneurs! Hundreds of founders and management teams tap into the expertise of their trusted finance and accounting partner to help scale their companies.
Business is about people. When you partner with Outsourced CFO, a finance professional or team with the right mix of knowledge, skills and experience is personally matched with your company – working with you to create a world class finance function for your growing company. Your success story is our success story.
PARTNERS
Our Clients.
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FAQ
Frequently Asked Questions
What payroll services do you offer?
We handle payroll setup, monthly processing, payslip generation, tax submissions, and employee record management.
Do I need both an accountant and a tax practitioner for my small business payroll needs?
Depending on your business’s complexity and payroll requirements, you might benefit from both. An accountant generally helps in managing and reviewing the financial aspects of your business, including offering advice on financial strategy. A tax practitioner, on the other hand, is specialized in understanding tax codes and ensuring that your business complies with relevant tax regulations.
While some small businesses might find that an accountant can manage both roles, others with more complex payroll needs will benefit from having both professionals on call to ensure full compliance and optimized financial management. For those businesses who cannot afford to pay a full-time tax practitioner, OCFO offers an outsourced service to bridge the gap.
Do you handle tax compliance?
Yes, we ensure full compliance with PAYE, UIF, SDL, and COIDA requirements.
How often do you process payroll?
Payroll is processed monthly, ensuring accurate and timely salary disbursements.
Can you manage payroll for remote employees?
Yes, we manage payroll for both local and remote employees.
What payroll software do you use?
We utilize leading cloud-based payroll software tailored to your business needs like Simple Pay, Sage and Pay Space.
How to stay compliant with all payroll registrations, taxes and levies?
To stay compliant is easy as long as an employer is registered for all the required taxes and types of levies. Employers should ensure the following:
- All employees are registered for Income Tax and all payroll deductions are deducted from an employee’s salary.
- EMP 201’s for PAYE, UIF and SDL are submitted and paid, monthly before the seventh of the month that follows the payroll month
- COIDA returns are submitted annually by the 31st of May and paid within 30 days of submission.
- Employees receive payslips on a monthly basis.
- Employee benefits fall within the scope of the Labour Law (Annual Leave, sick leave, family responsibility leave)
- EMP501 reconciliations are done bi-annually in October and May. EMP501 returns are where your payroll is reconciled to the EMP201’s submitted to SARS. The annual creation of IRP5’s and IT3’s are done by submitting your EMP501 reconciliation after the end of the financial year (May reconciliation).
How to identify if you are an independent contractor?
The rules of an independent contractor are simple:
- Your services are not performed mainly at the premises of a client
- Your client does not control your working hours and your schedule
- You may employ three or more full-time employees, who are not connected to you.
- An individual will qualify as an independent contractor if the following conditions are met:
- When all three conditions are met
- When only conditions 1 and 2 are met
- If condition 3 is met, irrespective of whether condition 1 and 2 is met.
How to differentiate between an employee and an Independent Contractor?
Independent contractors are also called freelancers, and they do not receive any benefits from a company. They file their taxes independently and are not included in the payroll of any company. The independent contractor is in charge of his / her own work methods, hours and schedule, and they are not limited to one client.
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