Empowering your line-managers, freeing-up your payroll staff

by with No Comment EmployersEntrepreneursLatest Payroll NewsPayroll Administratorspayroll professionals

In a recent Accenture report entitled The Platform Economy, it was revealed that “81% of executives say [that] platform-based business models will be core to their growth strategy within three years.” This interesting claim makes it clear that managers and business owners have recognised that an excellent software platform may well be a significant contributor towards the ensured longevity of an organisation’s success.

Whether you’re a business owner, a manager or supervisor, we can all identify with the frustration of having to find and/or collate information in order to make a necessary business-related decision. For this reason, since your time is precious to you, pressure rapidly accumulates when you feel that your time is being misspent. When your employees demand immediate answers, there is no greater frustration than having to stop what you’re doing, in order to find the relevant information that your employees are pressuring you for.

Disempowering situations result in frustration

Now, cast your thoughts back to the countless, tedious authorisations and forwarding of claim documents that you’ve had to attend to. Or the innumerable leave forms that you’ve had to forward to your payroll department. (Come to think of it, perhaps we ought to spare a few sympathetic thoughts for payroll departments everywhere!)

For example, have you ever been in the situation where—when busy with the planning of your staffing schedule—you’ve had no clue which of your staff will be taking a period of leave?

Or, have you ever attempted to resolve an overtime-related remuneration query without having due access rights to the necessary system records in order to troubleshoot the query? Does this not compel you to take a walk to your payroll department so that they can provide you with adequate additional information in order to be able to resolve the staff query that you’re dealing with?

Similar examples abound: trying to (manually) run the company’s performance evaluation process, or trying to report on staff-performance trends for the past three years, or being charged with accountability of an entire recruitment campaign that necessitates the collation of several interviewers’ interview notes.

Paymaster understands and identifies with your frustrations

At Paymaster, we understand and certainly do identify with some of the frustrations that you may well continue to experience.

Paymaster understands that you fairly acknowledge that you know you’re expected to ‘deliver the goods’, regardless of these frustrations. After all, as a salaried manager or supervisor, you’re employed to make a significant difference within the organisation despite these frustrations. And, if you happen to be the business owner, Paymaster also understands that you’d much rather be spending most of your valuable time ‘steering the ship’ (i.e. your own business) into the exciting unchartered waters of optimal future profitability and future organisational success.

At Paymaster, we understand that your job-portfolio places a high priority on achieving results which will most likely be measured by successes that are best recognised on the bottom line.

Paymaster understands that your valuable time and energy is of paramount importance to your organisation too.

Empowering your line-managers and freeing-up your payroll staff

You’ll be pleased to know (possibly you’ll even be a bit surprised to know), that Paymaster offers you access to a leading (comprehensive) software platform that has been designed to automate the management of your business’ human resources administration and payroll processes. It’s a matter of fact that the Paymaster system may well turn out to be a significant contributor to the longevity of your organisation’s future successes.

Bottom-line: the net-effect is that you will be empowering your managers and freeing-up your payroll staff, thereby allowing them to get on with more relevant and engaging management imperatives and payroll priorities.

What does the Paymaster human resource software platform involve?

The Paymaster human resource software platform provides the assurance that all aspects related to the human resources within your organisation will be adequately managed. For example, this includes taking control of your organisation’s payroll process, …right through to the budgeting exercise for new vacancies.

[tweetthis remove_twitter_handles=”true” remove_hidden_hashtags=”true” remove_hidden_urls=”true”]The Paymaster [Human Resource Software Platform] assures that human resources will be adequately managed. [/tweetthis]

A special feature of the software platform involves facilitating the management and tracking of a full recruitment campaign: beginning at the start (with the creation and placement of a recruitment advertisement), all the way to the scheduling and recording of employees’ exit-interviews.

The Paymaster human resource software platform is a “One system, One platform, Accessible to many” software platform.

Would you like to find out more? For an in-depth overview of the Paymaster human resource software platform, simply click here for all the details.


Conclusion

Once you’ve implemented the Paymaster human resource software platform at your company, your line-managers and payroll staff will without doubt be significantly more empowered because:

  • They will have significantly more free time to invest in working on tasks and projects that are of priority benefit to the organisation.
  • They will have to endure far less frustration, because the organisation’s human resources information will now be more easily and readily available at the mere click of a few (keyboard) ‘buttons’ (i.e. ‘right at their fingertips’).
  • They will be significantly more motivated because they would have gained the pleasure of being able to quickly and easily resolve HR-related enquiries.
  • They will be operating a software platform that maintains the strictest security and confidentiality of all HR-related
  • They will have complete peace of mind in knowing that all HR-related procedures are being followed, and that all HR-related documents will always be comprehensively completed and duly authorised.

What more could you wish for? Nothing really, because the Paymaster human resource software platform has got it all.[1]

↔◊↔

 [1] There are significantly more benefits and functions than this article covers: in addition, the Paymaster human resource software platform includes the following 5 solution categories: budgeting, position management, recruitment, performance evaluation and training. See brochure for more.

Would you like to know more? You are invited to contact Ian who will be happy to reply to any additional questions that you might have.

 

Are you responding to countless payroll-related questions? Here’s how to recover 3 hours of your valuable ‘lost time’…

by with No Comment EmployeesEmployersLatest Payroll Newspayroll professionalsProductivity

Problem: are you responding to countless payroll-related enquiries?

Often, it seems as if all of our time is consumed by responding to staff and colleagues’ countless payroll-related questions.

This type of time-wasting is an easy trap to fall into. In fact, ‘lost time’ is the default result of ineffective workplace systems and processes.

Do you often wonder how you might be able to recover some of your ‘lost time’?

When providing payroll-related answers to enquiries made by staff and colleagues, the act of doing so is, more often than not, rather easily dealt with. The trade-off however, is that this act does require you to momentarily cease a task that you’re busy, in order to divert your attention for a while.

Sometimes you may have a quick answer for the person making the enquiry. More likely however, you may well find yourself spending a good few minutes preparing an answer for the person whom you’re attending to.

Therefore, in the final analysis the point being made is this: when several of these ‘interruptions’ take place quite frequently— throughout the course of an average workday—a considerable amount of time is lost.

[tweetthis remove_twitter_handles=”true” remove_hidden_hashtags=”true” remove_hidden_urls=”true”]Frequent ‘interruptions’ throughout the course of an average workday, WILL result in lost time![/tweetthis]

Solution: automated payroll self-help enquiry service for employees

A recent informal survey conducted by Paymaster Payroll revealed that there is an inordinate repetition of payroll-related questions being (repeatedly) asked of management and supervisors within organisations that do not have the benefit of an automated payroll self-help enquiry service.

Findings from the Paymaster Payroll survey revealed some interesting truths. You may be surprised to discover that the most frequently asked questions were:

Top 5 payroll-related ‘time wasting’ questions

  1. Employee: “Please may I get a copy of last month’s payslip, because I seem to have misplaced my original copy.”
  2. Colleague: “I urgently need the home address and mobile contact phone number of [Sally/Joe] who works in my department…”
  3. Colleague: “How much cumulative overtime did my department work for last month?”
  4. Colleague: “May I have a list of my employees’ salaries, their net pay and their official job titles.”
  5. Employee: “How much total leave (sick and annual) do I still have for the current leave cycle?”

On average, recoverable ‘lost time’ will add up to (about) 3 hours

Many organisations have made the switch to the use of an automated payroll self-help enquiry service. Consequently, after having made the switch, management and supervisors have recovered about 3 hours1 (per week) of lost time.

Does this come as a surprise to you? If so, it ought to be good news too, because it means that you may well end up recovering more of your own lost time too.

Accordingly, you are certain to find more available time for yourself too: more time to refine your productivity levels, more time to spend on planning and operational matters, and more time to do just just about anything you like.

What a pleasure!

Would you like to know more? You are invited to contact Ian, who will be happy to reply to additional questions that you might have.

1 This claim is based upon Paymaster’s set of estimated variables that we used during the calculation and testing process of the productivity survey.

Which employee-related records must I keep in order to sleep peacefully at night?

by with No Comment EmployeesEmployersLatest Payroll NewsPayrollPayroll AdministratorsPayroll TipsUncategorised

An organisation has a legislated obligation to keep employee-related records

South African legislation makes it very clear that you, the employer, have an obligation to keep employee-related records. You need to make sure that the paperwork is accurate, on time, and available to your employees, to you company-representatives, and to any government representative who may request these during an inspection/audit.

Therefore, knowing exactly where everything is filed (whether it be manually or electronically filed), no doubt makes prudent company sense.

Two methods of filing exists: the ‘old-fashioned’ manual filing method, and the more contemporary electronic document filing method.

Allow me to proceed by discussing which employee-related records need to be filed, and who may request audit-access to these filed documents that ought (at all times) to reside in your organisation’s secure document archives.

What needs to be filed: BCEA-related?

A good start is to to turn to the Basic Conditions of Employment Act 75, of 1997 (BCEA), which informs us of the statutory requirement to have a written contract of employment. This contract ought to include the following details:

  1. the full name and address of the employer;
  2. the name and occupation of the employee, or a brief description of the exact type of work/duties which the employee was hired to perform;
  3. the place of work, and, where the various locations where the employee is required (or permitted) to perform his/her duties;
  4. the date on which the employment contract commenced;
  5. the employee’s ordinary “hours of work” and “days of work”;
  6. the employee’s wage (alternatively, the contract to stipulate the rate and method to be used in order to calculate his/her wages);
  7. the rate/s of pay for overtime work;
  8. any other cash payments that the employee is entitled to;
  9. any payment ‘in kind’ that the employee is entitled to, as well as to clearly state the monetary equivalent-value of this ‘in kind’ method of payment;
  10. how frequently remuneration will be paid (i.e. frequency of payment intervals);
  11. any deductions to be made from the employee’s remuneration;
  12. the exact categories/types of leave which the employee is entitled to;
  13. the period of notice required in order to terminate the employment contract, or if employment is for a limited/specified period of time: the date upon which employment contract ceases;
  14. a description of any bargaining council or sectoral determination that governs further regulations specific to the type of business/organisation which the employee works at;
  15. any period of employment (with a previous employer) that may need to be factored into the employee’s new employment contract;
  16. a list of any other documents that form part of the contract of employment, whilst also indicating where the employee may (reasonably easily) access a copy of each of these documents.

Once an employee’s service with the organisation ends, record of his/her contract of employment must be archived for a period of three years after their leaving.

More filing needed: all hours worked and remuneration paid?

The organisation is compelled to keep a comprehensive set of records of all employees’ monthly hours worked and full details of remuneration paid to each and every employee:

  1. the employer’s name and address;
  2. the employee’s name and occupation;
  3. the period for which the payment is made;
  4. the employee’s remuneration in money; (e) the amount and purpose of any deduction made from the remuneration;
  5. the actual amount paid to the employee; and
  6. if relevant to the calculation of that employee’s remuneration
    • the employee’s rate of remuneration and overtime rate;
    • the number of ordinary and overtime hours worked by the employee during the period for which the payment is made;
    • the number of hours worked by the employee on a Sunday or public holiday during that period;

This aforementioned information must appear on each employee’s payslip. Every single employee must be given a copy of their payslip (which may be done during working hours or within 15 minutes after the employee’s shift has ended).

The organisation is compelled to keep archival record of these documents for a period of 5 years.

Lastly, an inspector (that has been legally and duly appointed in terms of the BCEA) may enter the organisation’s premises at any time, without a warrant or notice, and proceed with a compliance audit. It is incumbent upon the organisation and its representatives to prove that all employment-related records are accurate. Dependent upon the type of contraventions that may be discovered by the inspector, the BCEA provisions for a punitive fine of up to R 500 per employee (and/or a period of imprisonment for up to three years).

[tweetthis remove_twitter_handles=”true” remove_hidden_hashtags=”true” remove_hidden_urls=”true”]No filing records: contraventions discovered by an inspector, may attract a fine of up to R 500 per employee… [/tweetthis] Consequently, prudence seems to lie in preparedness: Paymaster recommends that you ensure that your employee-related records are always duly filed (manually, or electronically) and are in order for possible inspection/audit.

Thankfully, Paymaster (after many years of professional service to its clients) has gained the experienced capacity to help make your organisation’s record-keeping an easy, effort-free enjoyment. With an automated payslip process, Paymaster keeps all your essential and valuable employee-records online (safely and securely stored in the Cloud). These records are readily and easily available (at the click of a button) at any time.

Sleep easy at night, without worrying about that BCEA inspector’s ‘knock on the door’!

Further great news: you may elect to process your payroll, Paymaster can do it all for you, on your behalf — a fully outsourced and comprehensive solution for your organisation.

Whatever you decide to choose, be assured that Paymaster has your organisation’s employee-related record-keeping needs fully covered. Ultimate peace-of-mind for you!

Become the centre of the Human Resource/Payroll network in your organisation

by with No Comment EmployersLatest Payroll NewsPayrollpayroll professionalsRecruitmentRemunerationWorkflow

Artificial intelligence  and automation to make payroll process redundant

Last week I wrote about the demise of the payroll process position.

In this article, allow me to emphasise that in 5 years time, I do believe that artificial intelligence (AI) and automation will result in the position (of payroll clerk) being made redundant. Instead, this employee’s role with increase in scope: he/she will become a ‘gatekeeper of policy’ and the ‘analyser of information’ within the organisation. The newly evolving role that he/she will fulfil is that of the Process Manager. As such, the process manager will become the centre of the human resource/payroll world! If you manage the software, you manage the world!

This newly-evolving position is becoming more and more apparent within the human resource fraternity of professional practice: i.e. the position of ‘systems manager’ or ‘traffic controller’.

[tweetthis remove_twitter_handles=”true” remove_hidden_hashtags=”true” remove_hidden_urls=”true”]This newly-evolving position is becoming more and more apparent …that of HRIS ‘systems manager’… [/tweetthis]

The role of the systems manager

What does a systems manager do?

Plainly stated, the systems manager ‘manages’ each and every human resource process. They make sure that the human resource information system (HRIS) is correctly set up, that it is receiving the correct information, and that it is being used correctly.

Next, let us consider some examples of roles fulfilled by the systems manager:

Ensuring that the parameters within the HRIS system are correctly configured

The systems manager, for example, will ensure that the correct organisation-chart is reflected on the system, or that correct skills and competencies/qualifications are linked to correct positions. HRIS setup may also focus on the recruiting process by allowing the systems manager to determine which set of core questions job candidates will be presented with. This is critical to keeping the HRIS software up to date.

Controlling the accuracy of information in the HRIS system

The systems manager monitors changes in job descriptions and updates the HRIS system accordingly. She/he will also make sure that information inputted into the HRIS system makes sense — e.g. such as analysing feedback from an interview, or details of a training programme.

Controlling the flow of information

Upon receiving a request for a new employee to be recruited, the systems manager will configure (i.e. “set up”) the online adverts, the recruitment-questions, the screening mechanisms, etc.

A further critical task involves ensuring that the entire HRIS system is optimally configured. Liaising with line-mangers—regarding details of the human resources process—involves the setting-up of interventions or appointments, which incidentally, is a key focus-point.

Another primary task may involve ensuring that when line-managers log-in, that correct processes and information is available to them — for example, by the setting up of recruitment interviews and making sure that candidates’ CV’s are available online (inclusive of the core questions and scoring-sheet being available and ready for use).

Monitoring line mangers’ use of the software, …and assisting where required

My favourite example—to emphasise a real benefit of the HRIS system—is this: training managers use the system to get the information they want.

A further example includes how to request a report or compare payslips so that line managers are indeed seen to be helping their subordinates. The systems manager is also able to request an audit report, in order to see what the organisation’s line-managers are doing. By facilitating this, the systems manager enables line-managers to automate routine tasks. Consequently, within the organisation, the systems manager certainly will be making a (significant) difference.

Assisting with reporting and analysis

The HRIS system software itself allows you to demonstrate your specialised skills, by assisting line-mangers with important analyses of their payroll and human resources information. PS — …in addition to line-managers being able to gain information from regular reports which the system provides. This is where the systems manager gets to demonstrate that she/he knows how to operate the system, thereby enabling him/her to provide relevant details quickly and efficiently.

[tweetthis remove_twitter_handles=”true” remove_hidden_hashtags=”true” remove_hidden_urls=”true”]The HRIS systems manager demonstrates that she/he knows how to competently operate the HRIS system…[/tweetthis]

So, what do you need to know in order to do this?

  • Most importantly, know and understand/work with a HR/Payroll system that offers this functionality (Allow me a quick punt: paymaster.co.za does indeed offer all of these features and functions).
  • A comprehensive knowledge of human resource practices.
  • A thorough knowledge of the organisation and its policies and procedures.
  • A full understanding of how the HRIS software operates and which functions it integrates with.
  • In terms of organisational mission, vision, goals and objectives, be sure that you know (exactly) in which direction your organisation is headed
  • Acquire a thorough working-knowledge and in-depth understanding of the needs of line-managers: i.e. determine what their wants and needs truly are

Do all this and you will become the centre of the HR/payroll hub in your company

The competent professional who will be managing this HR/payroll (HRIS) hub, not only needs to understand human resources well, but would need to understand the HRIS system too. She/he needs to know exactly how to optimally configure many HRIS processes, as well as how to keep line-mangers motivated during their own use of the HRIS system.

PS — the reader of this article would do well to recognise that (ideally) this is a full-time position.

Further good news is that for smaller organisations’ needs, this entire process may be outsourced — it is a comprehensive service which Paymaster offers.

 

[Insight Article] – 6 Perks That Do More Harm Than Good

by with No Comment EmployersPerks

 

Can perks have unintended effects?

Author: Jeff Haden

Before you offer your financial director that VIP parking space, check why rewarding with a perk can often have the opposite effect.

I started out in a new job…

I started a new job and was given a reserved parking spot right by the main entrance. Pretty cool.

Three days into the job, I got out of my car during a pouring rain. Two ladies hustled by me in heels, their feet already soaked as they  failed to avoid puddles. Even though they were in a hurry to get out of the rain they still had time to glance at me. Their faces were expressionless but I definitely got the message.

Why did I need a reserved spot? What made me so special?

Nothing, actually. The next day I started parking on the side of the plant where all the other manufacturing employees parked.

The problem with most perks is that they may be intended as rewards, but all they really do is create artificial distinctions based on arbitrary and often self-serving criteria.

That’s why dropping most perks ” either yours or those extended to certain others ” is a great way to eliminate real or perceived barriers between you and your employees.

Here are six perks to get rid of immediately:

1. Vendor trips. When I worked in printing, paper suppliers often took key employees (key meaning “people who sign purchase orders”) on fishing trips and to rugby games. Never put yourself in a position of perceived influence or favoritism. Besides, your employees don’t get to go on the trips, so you shouldn’t either. A great vendor provides excellent service and quality products at a great price, not tickets or meals or trips.

Unless: You can keep this perk if you draw a winner for the trip/prize/etc. from a hat that contains every employee’s name; that way everyone has a chance.

2. Reserved parking. You’re “special” in other ways. No boss needs to park close to the front door.

Unless: Creating reserved parking spaces for employees who work late at night and go to their cars alone makes perfect sense. But keep in mind if your parking lot is potentially dangerous you should do more than set up reserved spots to ensure employee safety.

3. Separate lunch and break rooms. You may think the executive dining room is long gone, but in the last year I saw seven. Repurpose that space and eat with everyone else.

Unless:If your facility is large enough, creating multiple lunch or break areas for reasons of convenience makes sense. Just make sure your break area isn’t nicer than any of the others.

4. Doors. No, you don’t need to remove your door; just leave it open except during confidential discussions with employees. Your office is a tool that supports your job function, not a way to hide from employees.

Unless: Sometimes you need quiet; when you do, let people know why you’re closing your door. They’ll understand.

5. Refreshments. Some businesses provide snacks and drinks for management meetings. Seems like the nice thing to do, but don’t be surprised if rank-and-file employees think, “Hey, there go the cookies and cold drinks again… must be nice to go to all those meetings.” If your meetings run so long your team requires sustenance to keep going, your meetings are way too long. (Plus the “let’s all grab a few snacks and drinks before we get started” thing wastes a lot of time.)

Unless: If you hold a meeting with all employees present, providing refreshments is awesome.

6. Popping in and out. You work long hours. You often work into the night. So sometimes you leave work during the day to take care of errands and personal appointments. If your employees can do the same, that’s great. But when others don’t enjoy the same discretion and freedom you show that standards are applied very differently. The average employee doesn’t see all the nights and weekends you work; they just assume you don’t practice the dedication you preach. Remember, it’s all about perception.

Unless: If you only have a few employees and you work closely with those employees, flexing your schedule is okay since your workday is relatively transparent.

[Department of Labour] National Public Hearings Commence to Decide on New Minimum Wage for Hospitality Sector

by with No Comment department of labourEmployersLatest Payroll NewsRemuneration

press release by Lloyd Ramutloa —  03 February 2016

The Department of Labour will on 10 February 2016 begin national public hearings and on-site visits as part of an effort to review the minimum wages and employment conditions in the Hospitality Sector.

The Hospitality Sector’s three-year Sectoral Determination comes to an end on 30 June 2016. The Sectoral Determination spells out minimum wages, number of leave days, working hours and termination rules among other conditions of employment.

The initial public hearings on February 10 will begin in Bloemfontein at the Department of Labour offices at corner Charlotte Maxeke and West Burger Streets; and in Durban at 85 O.R Tambo Street, respectively.

The Hospitality national public hearings and inputs gathering initiative will culminate on 11 March 2016 at 239 Concilium Building at corner Nana Sita and Thabo Sehume Streets in Tshwane (Pretoria).

In terms of the minimum wages for employees in the Hospitality Sector, for the period 1 July 2015 to 30 June 2016 for establishments with 10 or less employees the current minimum wage is: (R2 760,59) monthly; (R637,10) weekly; (R14,15) hourly).  [tweetthis remove_twitter_handles=”true” remove_hidden_hashtags=”true” remove_hidden_urls=”true”]Hospitality Sector: current minimum wage of (R2 760,59) monthly; (R637,10) weekly; (R14,15) hourly) now under review.[/tweetthis]

For those employers with more than 10 employees the minimum wage for the period 1 July 2015 to 30 June 2016 is: (R3 076,98) monthly; (R710,12) weekly; and (R15,77) hourly.

The Sectoral Determination in Hospitality Sector covers any commercial business or part of a commercial business in which employers and workers are associated for the purpose of carrying on or conducting one or more of the following activities for reward in a hotel, motel, inn, resort, game lodge, hostel, guest house, guest farm or bed and breakfast establishment including short stay accommodation, self-catering, timeshares, camps, and caravan parks.

It also includes restaurants, pubs, taverns, cafés, tearooms, coffee shops, fast food outlets, snack bars, industrial or commercial caterers, function caterers, contract caterers and includes all activities or operations incidental to or subsequent on any of the activities mentioned above.

The Hospitality Sector sectoral determination excludes workers and employers involved in the trade of letting of flats, rooms and/or houses. It also excludes all workers and employers covered by another sectoral determination in terms of the Basic Conditions of Employment Act. It further excludes areas that are covered by a Statutory Council or a Bargaining Council.

The Hospitality national public hearings will start at 9am and 13:00 respectively.

 

Originally published by Department of labour

Issued by Department of Labour Communication Directorate:

Mokgadi Pela

Acting Departmental Spokesman

082 808 2168

Millennials to employers: 4 reasons we keep quitting

by EmployeesEmployers

Millennials to employers: 4 reasons we keep quitting

by

It’s rare to find something HR-handy on Facebook these days. Between your friends sharing their baby photos and political opinions, there isn’t much room left for stuff to help with your job. But we had to share this Facebook find with our HR Morning audience.

A reader, a Millennial himself, spotted and shared this Forbes.com article.

It’s entitled, “Why Millennials Keep Dumping You: An Open Letter to Management.”

It contains a letter penned by Elizabeth McLeod, a millennial and cum laude graduate of Boston University. She’s the daughter of Lisa Earle McLeod, a best-selling author and creator of the popular business concept Noble Purpose, who also has a regular column at Forbes.

In McLeod’s letter, which is simply addressed “to Management,” she beautifully combats the common stereotypes placed upon Millennials — stereotypes like they don’t settle down, they’re fickle, and they only care about themselves and not the companies they work for.

Top reasons you can’t keep Millennials

She does so with a list of specific reasons Millennials hand in their resignation letters shortly into their tenures with employers.

Here it is:

  1. You put up with low performers. Millennials want to make a difference and be a top-producer, but they don’t want to be held down by those whom McLeod called the “Donna-Do-Nothings.” She said after a while, Millennials with a great work ethic will begin to wonder why management puts up with extremely sub-par performance. Then, after a while, they’ll assume that’s the standard and will want no part of it.
  2. You’re too focused on money. Again, Millennials want to make a difference — and they want it to be somewhere other than the bottom line. Yes, they understand the company needs to make money. But they don’t want that to be the sole focus. They want to know that their work is helping customers or the community in some way. A great point McLeod makes further down in her letter: “… I’ll (meaning Millennials in general) will do the grunt work. But I’m not doing [it] to help you get a new Mercedes.”
  3. Good culture doesn’t mean free meals. “Don’t confuse culture with collateral,” McLeod wrote. While she said she appreciates a free lunch, she doesn’t wake up in the morning and come to work to get one. “I need to be surrounded by people who are on fire for what we’re doing. I need a manager who is motivated to push boundaries and think differently,” she added.
  4. You treat people like a number. Treat her like a number or a cog in a wheel, and she’ll just start showing up just to get a paycheck — like Donna-Do-Nothing. That’s not what you want to happen. You want people who will show up and care about producing quality work. But that’s not what you’re going to get if you don’t show Millennials why their work matters — again, beyond padding the corporate bank account.

Article first published: http://www.hrmorning.com/millennial-to-employers-reasons-we-quit/

Overview of the basics of employer tax

by with No Comment EmployersLatest Payroll NewsSARSTax

Overview of the basics of employer tax

By starting a business, you’re helping to create jobs, contributing towards skills development, and even inspiring other entrepreneurs.
But it’s important to get your SARS red tape right from the start if you want to avoid problems and penalties with the tax authorities later down the line. This overview sets out the basics of employer tax – an area where you have no margin for error.
As an employer, you must deduct taxes from employees, file a range of submissions to SARS, and supply your employees with IRP5 certificates that they will also submit to SARS. You must also register all employees for income tax – everyone who is formally employed needs to be registered with SARS.Declarations and forms to be submitted:

  • Monthly Employer Declaration (EMP201) – This form declares the following deductions: PAYE (Pay as You Earn), SDL (Skills Development Levy) and UIF (Unemployment Insurance Fund) contributions.
  • Employer Reconciliation Declaration (EMP501) – Twice a year you must file this reconciliation of all amounts paid to SARS on behalf of your employees. The next deadline is 29 May 2015 – don’t miss it!
  • Employee Tax Certificates (IRP5/IT3(a)) – You must provide these tax certificates to employees after each tax year, and they will submit them to SARS.
  • Cancellation of Tax Certificates (EMP601).
  • Adjustment to Annual Reconciliation (EMP701) – Where you need to make adjustments to past reconciliation and declarations, this is the relevant form.

Employers must submit their Monthly Employer Declaration (EMP201) by the seventh of each month. Then, you will usually submit an interim Employer Reconciliation Declaration (EMP501) in September-October for the six months from 1 March to 31 August. Your final annual EMP501 submission is done during April and May for the tax year 1 March to 28/29 February.

You will normally issue employee tax certificates once a year. Watch out for SARS announcements at the end of each tax year (end of February) to keep ahead of the annual submission dates.

Steps to follow

SARS no longer accepts paper-based declarations for companies with more than five employees. If you have more than 20 employees, you’ll do most of your reconciliations and declarations electronically using the e@syFile software or use the eFiling website if you have under 20 employees.

Remember:

  • Always use the latest version of e@syFile, since SARS will not accept data submitted using an old version of the software.
  • Backup your data before installing an upgrade of e@syFile to protect yourself against the risk of possible data loss during the upgrade process.

Compiling the PAYE data and submitting employers’ tax reconciliation declarations can be easy if you use the right tools – especially a reliable and efficient payroll software system – and keep track of new SARS requirements and legislative changes.

BY: MADELEIN VAN DER WATT

RETURN OF EARNINGS 2013

by EmployersPAYEPayroll

INFORMATION AND GUIDELINES

  1. IF THE RETURN IS NOT SUBMITTED TO THIS OFFICE ON OR BEFORE 31 MAY 2014, A PENALTY NOT EXCEEDING 10% (TEN PERCENT) OF THE FINAL ASSESSMENT, MAY BE IMPOSED, IN TERMS OF SECTION 83(6)(b). THE ACT EMPOWERS THE DIRECTOR GENERAL IN TERMS OF SEC 83(6)(a) TO ESTIMATE THE EARNINGS.
  2. KINDLY TAKE NOTE THAT THE RETURN OF EARNINGS, W.As.8, IS MAILED TO ALL REGISTERED EMPLOYERS IN THE BEGINNING OF THE YEAR. THE ONUS IS UPON THE EMPLOYER TO NOTIFY MY OFFICE BY THE 1ST OF MARCH IF THE RETURN OF EARNINGS FORM HAS NOT BEEN RECEIVED. FORMS ARE AVAILABLE ON THE WEBSITE.

 

WHO IS AN EMPLOYEE AS REFERRED TO IN PART 2

“Employee” means a person who has entered into, or works under a contract of service or apprenticeship or learnership with an employer, whether the contract is expressed or implied, oral or in writing, and whether remuneration is calculated by time or work done, or is in cash or in kind and includes –

  • Casual / temporary employee employed for the purpose of the employer’s business/farming activities.
  • Working director of a Company or member of a Close Corporation/Body Corporate, who has entered into a contract of service, or of apprenticeship or learnership, in so far that the employee acts within the scope of his/her employment in terms of such contract. (Excluding shareholders or “silent partners” who are only paid dividends or sharing profits).

NB. A sole owner or partners in a business/farming operation are not regarded as “employees” as contemplated by the Act and their earnings should, therefore, not be included.

A person provided by a labour broker, against payment to a client for the rendering of a service or the performance of work and for which service or work such person is paid by the labour broker, is an employee of the labour broker. The earnings of such persons should not be included in the client’s Return of Earnings document.

 

WHAT ARE EARNINGS (STAFF COSTS/SALARIES & WAGES) AS REFERRED TO IN PART 2

Earnings are all payments made regularly, before any deductions, whether in money or in kind, to employees.

The following list is not exhaustive, but are intended only to highlight certain remuneration items for which there may be some doubt as to their inclusion or exclusion.

Included in the gross earnings before any deductions are the following:

  • Overtime of a regular nature, (not intermittent or irregular overtime).
  • Bonuses of any kind, including incentive bonuses and annual bonuses.
  • Commission, even though the amount may vary from month to month.
  • The cash value of food and quarters supplied to employees as part of a remuneration package. Cash value of fringe benefits such as a company car, free accommodation or accommodation at a reduced rate, etc.
  • Travel and other allowances paid regularly, as part of the package.
  • Where the employee is remunerated in accordance with a package of benefits, all items forming part of the package, other than employer contributions such as medical aid contributions.
  • Earnings/Drawings paid to working Directors of a Company or Members of a Close Corporation.

Attach a list with their names, ID numbers and addresses.

Excluded are the following:

  • Payments of a reimbursive nature.
  • Overtime worked occasionally.
  • Payments for specific non-recurring tasks, which do not form part of an employee’s normal duties.
  • Ex gratia payments.
  • Intangible fringe benefits such as the taxable portion of medical aid/pension contributions by the employer, etc.
  • Payments to cover special expenses such as subsistence and travelling costs, lunch and costs for business meetings.
  • Travel and other allowances paid occasionally.
  • Profit sharing of Directors and Members.

 

FINAL EARNINGS

When a business is sold/ceased, liquidated/sequestrated or the employer deceased:

Indicate the date in the space provided on the front page (item 1.13) and declare the final earnings paid to that date.

 

MINIMUM ASSESSMENT SECTION 83(2)(b)

As a result of continuously rising costs, the 2013 – 2014 minimum assessment has been increased to R 900 per annum.

 

LETTER OF GOOD STANDING

This letter can be obtained once the employer has complied with the requirements of the COID Act, inter alia:

  • Submitting the latest return of earnings.
  • Assessment has been paid or instalments have been arranged and paid.
  • Application should be made in good time, 5 working days before it is required, preferably on a letterhead, in writing. If arrangements made for instalments attached copy of receipt.
  • Please quote the registration number, as well as telephone and fax numbers with dialling code.
  • E-mailed requests are acceptable. Use only the e-mail address cf.logrequest@labour.gov.za
  • Any tampering with the contents of these letters is a serious offence.

 

WEBSITE ADDRESS

The Compensation for Occupational Injuries and Diseases Act, 1993 and Amendments are available on the website at www.labour.gov.za

 

RETURNS OF EARNINGS ONLINE SUBMISSION

The office has introduced the online submission of Return of Earnings. The employers can submit their return online by following these steps

–     Go to www.labour.gov.za

–     Under Online Services window click Compensation Fund Return of Earnings Submissions

–     On the next screen click I am a new user and I want to Register -> Resister for DOL User account

–     Fill in the required fields and Apply for DOL access register

Alternatively click on the link below for ROW process flowchart. https://roe.labour.gov.za/DolRegistrationWeb/resources/docs/ROEInstructionManual.pdf

If you encounter any problems please send an email to ian@paymaster.co.za.

Employers – Get ready for the 2014 Employer Annual Reconciliation

by Employee TaxEmployeesEmployers

Download 2014 tax guide here (pdf)

Dear Employer

From 1 April 2014 it will be time to submit your Employer Annual Reconciliation for the period 1 March 2013 to 28 February 2014. You are encouraged to submit your reconciliation early as this will give you time to resolve any issues which may arise.

To help you get ready to submit, we would like to tell you about the changes you may expect this year:
• Updated version of e@syFile™ Employer available
Remember to always backup your current information on your computer prior to installing a new version of e@syFile™ Employer, as the installation may delete your current information.
• Employment Tax Incentive (ETI) included in the reconciliation submission
The ETI came into effect on 1 January 2014 which encourages private employers to employ young workers by providing a tax incentive. Qualifying employers are able to claim the ETI and reduce the amount of Pay-As-You-Earn (PAYE) payable to SARS. To see if you are a qualifying employer or employed qualifying employees visit www.sars.gov.za > Tax Types > PAYE > Employment Tax Incentive. Any amounts claimed for ETI on your Monthly Employer Declaration (EMP201) must be included in the spaces provided when completing your annual reconciliation submission.
• Completing the Employer Reconciliation Declaration (EMP501)
Make sure you enter the correct amounts for each month.
∙ The Gross PAYE before the ETI deduction must be completed.
∙ The Total actual payments after the ETI deduction must be completed.
∙ The ETI details section is mandatory, if you are claiming the incentive.
∙ Read all notes provided carefully, while completing the EMP501.

• The ETI supporting data must only be submitted when requested by SARS
For now, the ETI supporting data should not be included in the IRP5/IT3(a) file created by payrolls. The ETI supporting data requirements have been listed in Appendix C of the Business Requirement Specification: PAYE Employer Reconciliation (including the Employment Tax Incentive requirements).
• New source codes [IRP5/IT3(a)] ETI (4118) – The sum of the ETI amounts calculated (theoretical amounts) for the employee during the year of assessment. The value of this code cannot be a negative.
• Updated source codes [IRP5/IT3(a)] ∙ Code 3703 may not be reflected on an IRP5/IT3(a) together with code 3701 and/or 3702. The value of code 3703 must be included in the value of code 3702 under these circumstances.
∙ Code 3802 – Use of motor vehicle acquired by employer NOT via Operating Lease (PAYE). Code 3852 MUST only be used for Foreign Service income.

• The postal address information for employees has been updated to align to the new SARS structure [IRP5/IT3(a)] These fields must be updated before you submit your reconciliation. The requirements are listed in Appendix D of the Business Requirement Specification: PAYE Employer Reconciliation (including the Employment Tax Incentive requirements).
• The Standard Industrial Classification (SIC7) code has been included
The list of the codes is available in Appendix E of the Business Requirement Specification: PAYE Employer Reconciliation (including the Employment Tax Incentive requirements).
Please note: Retirement Funds/Fund Administrators are required to submit the SIC7 codes. Code 64300 must be entered, which is the “trust, funds and similar financials entities” code. This information will be excluded for the 2015 Employer Interim Reconciliation submission.
Don’t forget the following important details:
• Reconciliation submission may only be submitted to SARS from 1 April 2014
• eFiling may be used as a submission channel where you have 20 or less IRP5/IT3(a)s to submit with your EMP501
• Complete accurate reconciliation documents
• Submit your reconciliation documents before the deadline of 30 May 2014
• The latest Business Requirements Specification (BRS) is available on the SARS websitewww.sars.gov.za

For more information visit the SARS website on www.sars.gov.za, call the SARS Contact Centre on 0800 00 SARS (7277), or visit your nearest SARS branch.

Sincerely

SOUTH AFRICAN REVENUE SERVICE