MGT Accounting

4 Facts You Need To Know About Payroll

4 Facts You Need To Know About Payroll

To say payroll is one of the critical elements of running a successful business would be an understatement; it is, in fact, the lifeblood of your company. While payroll is one of the most significant expenses for companies in South Africa today, every company should run it.

Besides, it’s nearly impossible to grow a business without running payroll. Why? Because if you don’t pay employees, you’d trigger a vicious cycle. For instance, if you don’t pay your employees, they won’t pay their bills. If your employees won’t pay their bills, that means they won’t come to work. And if employees don’t come to work, your customers won’t get the kind of services they deserve.

However, certain situations can prevent you from being able to process payroll. They include the following:

– Customers who don’t pay you on time. – When as a business, you’re experiencing low sales. – If your business is servicing more debt.

Here are five facts that you need to know about payroll:

Payroll taxes One of the first things you need to consider when you process payroll is SARS; as a business owner, you should pay tax, which has two categories: employee tax and company tax. If you have hired full-time employees, you will be required to withhold a certain amount from their salaries that you’ll later pay over to SARS along with your portion each month.

Bookkeeping One of the aspects of processing payroll is record keeping. As an employer, you should maintain accurate records of all transactions, including your employees. Technology has made this much easier as you no longer need to file documents manually. Today bookkeeping is affordable and fast, especially if you outsource it to an accounting firm like MGT Accounting.

3. Running payroll shouldn’t give you a headache Payroll can take much of your time, especially if you have never done it before. Instead of doing it yourself, consider outsourcing it to an accounting firm to run it for you; it will save you time and money.

4. No need to dread payroll Accounting firms such as MGT have a team and a payroll system that will help you. Our payroll service will make the process easy for you by doing the following: – Bring the record-keeping of your employee to a central place where you’ll access it anytime. – Minimise risks of keeping inaccurate reports by double-checking every entry for you. – Calculate tax for you and your employees to help you to be compliant. – Help you settle any payroll discrepancies that you may have.

Payroll shouldn’t be giving you a headache, especially if you can still afford to pay your employees on time. Find out how MGT can help you to run your payroll right. Email info@mgt-accounting.co.za