Payroll + HR

Benefits of integrating online payroll systems and HR software

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Benefits of integrating online payroll systems and HR software

Are you wasting time inputting data into multiple places, such as separate payroll and HR systems, and creating unnecessary work? An integrated system that streamlines your payroll and HR software is essential, especially with remote and hybrid working models now the norm.

Here are 4 reasons to consider integration:

1. Avoid needless work

An integrated payroll and HR system can save your business from populating different systems with the same information.

The hidden dangers of payroll

Because these systems work together, you don’t have to add employees to the

payroll system separately, as user profiles are synced automatically from your HR software. If an employee is removed from the HR system, their profile is automatically deleted from the payroll too. All the information required for payroll processing, along with employee contact details etc, is pulled directly from the HR software. Plus, whenever employees receive salary increases and bonuses during performance reviews, the same information will be reflected in the payroll system.

2. Ease payroll processing

Payroll processing becomes a breeze when both the payroll and HR systems are integrated.

Without the integration, payroll teams have to contact HR departments every

month to receive attendance and payroll data for payroll calculation. There may be delays in this process if there are any lapses in communication. Because the data is collected and entered manually, it may be prone to errors. With smooth integration, these bottlenecks can be avoided.As employees mark their attendance, track their working hours, and apply for leave through the HR software, all the information about their working hours will be made available as reports in the payroll system. Payroll officials can then easily access these reports.

3. Improve employee experience

Employees don’t want to log in and out of multiple systems to complete their HR paperwork.

It’s much more convenient to use a single, centralized system. With integrated payroll and HR software, your employees can refer to their payroll-related information, including pay slips, tax deductions, and reimbursements, right from the self-service portal. They can also be allowed to edit and update their personal information independently without having to send emails to payroll and HR teams.

4. Streamlines compliance

Because data transfers between the payroll system and HR software are automated, the chances for payroll errors are hugely decreased. Most HR software options provide reports that show attendance, leave, and timesheet data required for payroll calculation. To help organizations adhere to national labour laws, HR system vendors are constantly updating their systems. In addition to this, payroll records required for audits can be centralized and accessed easily (including from mobile phones).

An integrated HR and payroll system can make payroll processing cohesive and organized. And save your employees time.

Contact Paymaster to find out how we can help you achieve maximum efficiency through integrating your payroll and HR software systems.

Contact us at 021 712 7333 or Glen Coburn at 083 679 1311 or glen@paymaster.co.za

Paymaster website – https://www.paymaster.co.za/

Paymaster Technology

Paymaster Payroll technology keeps you compliant

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Paymaster Payroll technology keeps you compliant

Paymaster’s cutting edge payroll software ensures your company remains compliant with the many laws and regulations that govern the employment relationship in South Africa. (ie. Basic Conditions of Employment Act and Labour Relations Act). Failure to comply with all these laws will lead to penalties that will impact your bottom line.

TechOur payroll software is constantly monitoring the latest regulatory changes and checking clients’ data information. This way your company is prepared and able to make the necessary changes to your payroll to keep you compliant.

Our payroll technological offering is flexible, and designed to adapt to suit your business’ needs. And as you grow and your requirements change, we adjust the payroll service to continue serving your needs perfectly.

Here are 10 points that you need to remember to stay compliant (these all impact your payroll):

1. REGISTER FOR DEDUCTIONS

All employees must be registered for :

  • PAYE (tax deducted from employees)
  • SDL (skills development levy – you deduct- pay to educational training authority)
  • UIF (unemployment insurance fund)
  • And, your company must be registered for company tax and VAT.

2.  BARGAINING COUNCIL REQUIREMENTS

Depending on the industry, your business may be governed by a bargaining council agreement. This would dictate minimum wages payable for employees (although some industries do not have a minimum wage). This agreement would include hours of work, overtime rates etc. Failure to comply will lead to penalties.

3. CONTRACT OF EMPLOYMENT

The BCEA stipulates that each employee must have a written contract of employment from the company. This should include notice period, annual leave, pay rates etc. Inspectors from the Department of Labour will check for compliance regularly.

4. CLASSIFIED AS AN EMPLOYEE

In South Africa, you are considered an employee if you work for more than 24 hours a month. This means you are covered by employment laws.

5. CALCULATING LEAVE PAY

Normal pay is calculated by multiplying the hourly rate by the number of hours worked. Leave pay is calculated as the average rate over the last 3 months ( must include overtime and commission received by the employee).

6. RESPECT THE DEADLINES

On the 7th of each month, your company must submit tax, UIF and SDL returns ( EMP201) to SARS, and pay the amounts due. No exceptions to the deadline will be considered. (Late submissions incur penalties of 10% of the total outstanding amount.)

In August you submit the 6-month reconciliation and the annual recon. in April/May.

Workmen’s compensation returns are due in March.

All these are deductions made from your payroll.

It is obvious that good payroll software will help you stay compliant, and prevent headaches.

7. SAVE RECORDS

Employee records must be kept by the employer, for a minimum of 5 years. These documents include timesheets, payslips and contracts of employments. Electronic copies are allowed.

Any documents linked to SARS are best kept indefinitely.

8. EMPLOYMENT EQUITY

This is an important issue in the South African work environment. Every 6 months large companies must submit progress reports to the Department of Labour. For smaller companies, it is once a year.

9. SA BANKING

South Africa has a sophisticated banking system that is comparable to international electronic transfer systems. If the transfer is done by 3pm, the money will be available to the employee by midnight.

10. THE 7 LAWS THAT GOVERN EMPLOYMENT

South African workers are informed about their rights, and expect the payroll department/service provider to deliver error-free pay runs.

Here are 7 laws that regulate the employment relationship in South Africa:

  • Basic Conditions of
  •  Employment Act
  • Labour Relations Act
  • Unemployment Insurance Act
  • Health and Safety Act
  • Workmen’s Compensation Act
  • Income Tax Act
  • Skills Development Act

Another reason to switch to Paymaster for your payroll needs.

Contact Paymaster to explore the software that will keep you compliant, and able to focus on the core business of your company.

Contact Paymaster Business Solutions at 021 712 7333 or Glen at 083 679 1311 or glen@paymaster.co.za for help to achieve your Payroll goals for 2023.