Tag: payroll

By Mia Lindeque for EWN

The South African Broadcasting Corporation (SABC) says that it is urgently dealing with its bank to sort out a technical glitch which resulted in staff not being paid their salaries on time.

Frustrated employees contacted Eyewitness News in a panic on Tuesday, complaining that they were not warned in advance.

This frenzy was partly triggered by concerns raised in Parliament by the SABC management painting a bleak picture of not being able to pay salaries in the future if the financial crisis at the public broadcaster doesn’t change.

The broadcaster’s Neo Momodu says that there was a technical problem on the bank’s side and has assured staff that they will be paid before the end of the day.

She’s also clarified that the SABC made all the necessary payments on time.

“We are handling the matter with the bank and we are sure that it will reflect in their accounts on 29 January. We’ve paid the salaries like we always do to the necessary banks so that they reflect with our staff. We are not in control of the cash. As far we are concerned as management, the salaries should have reflected in the staff’s bank accounts.”

Negotiating payroll compliance

Compliance in any facet of business management is critical, but specifically when it comes to finances – hence the focus on accuracy and efficiency in payroll administration.

While payroll administration has always been demanding and has to be run by skilled practitioners with meticulous attention to detail and a heightened sense of responsibility, HCM and HR experts agree it has become complicated.

Businesses are compelled to be registered with various industry bodies, for example Department of Labour (UIF, Employment Equity, etc.), Commissioner of Occupational Injuries and Diseases (COID, FEM, RMA), SARS (PAYE, SDL, UIF), Bargaining Council and so on.

This level of industry compliance means that there are a number of common pitfalls that typify payroll administration.

Some of these pitfalls include incorrect calculation of statutory deductions, failure to submit statutory submissions for example Department of Labour (UIF19, EEA2, EEA4 etc.), Commissioner of Occupational Injuries and Diseases (COID, FEM, RMA), SARS (EMP501, EMP201) and so on.

“The financial penalties for being non-compliant are very harsh,” says Ian McAlister, GM of CRS Technologies.

“And there are minimum requirements to be factored in, stipulated by the various Acts. There are several levels to compliance and this can be tricky for many businesses to handle – especially small-to-medium businesses that may not have the available capital to invest more in their payroll/HR capacity.”

According to HR and HCM solutions and services provider CRS Technologies an automated payroll for a small business generally starts at about R15 per employee, per month if run in-house.

“Outsourced payroll in the region of R100 per payslip per month. A competent payroll administrator would earn about R30k per month,” says McAlister.

Going forward, the likelihood is that as payroll administration calls for more specific skills sets, legislation will be passed that will make it an offence to not run payroll on a recognised payroll system.

The company believes that it is next to impossible to run a compliant payroll on a spreadsheet.

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