June marks more than just the halfway point of the year; in fact, it offers a strategic opportunity to pause, assess, and fine-tune your payroll process. Since you have six months of payroll data already collected and six more ahead, now is the ideal time to catch small issues before they turn into costly mistakes. Therefore, here’s why a mid-year payroll review matters—and what you should focus on.
Why Review Your Payroll Process in June?
- Fix problems early: Finding mistakes now gives you time to fix them before the busy year-end rush.
- Less pressure: June is quieter than January and February, so it’s a good time to review your payroll with a clear mind.
- Plan better: A mid-year payroll check helps you plan for tax, manage staff costs, and stay on track with compliance.
Key Mid-Year Compliance Checks
Make sure the following are in order:
- EMP201 submissions are accurate and submitted on time to avoid penalties.
- PAYE, SDL, and UIF calculations match actual payroll records.
- Tax directives are applied where needed and properly recorded.
- Third-party payments (e.g., pension funds, garnishees, medical aid) are accurate and current.
Common Issues Found in Mid-Year Payroll Process Audits
Even well-run systems can develop hidden issues. Look out for:
- Leave balances not checked can cause payout or leave errors.
- Old or duplicate employee records may lead to wrong pay or double payments.
- Wrong banking details can delay salary payments and create extra admin work.
- Payslip and SARS differences may lead to audits or fines.
Action Steps to Get Back on Track
A few proactive moves now can save hours of stress later:
- Run internal reports to identify payroll anomalies and compliance risks.
- Offer refresher training for payroll staff on recent SARS and labour law updates.
- Update payroll SOPs and introduce a mid-year checklist to keep everything on track going forward.
Final Thought
Ultimately, a quick mid-year payroll review can save you from a compliance scramble later. So, think of June as your payroll tune-up month—check the systems, make your fixes, and then cruise into year-end with confidence.
