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If anyone studying ICB Payroll, this is the summary presentation for Learning Module 3 taken from the ICB Payroll and Monthly SARS Returns Textbook
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Record & Validate input variations on employee records
Learning Unit 3
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Introduction PG 74
• Intelligent decision makers• HR department = improved
productivity• HR department = competitive
advantage• Growing legislative requirements• Productivity and business challenges• Integrated payroll system• Human resources competencies• Decision makers and timely
management information.
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Verify & record employee remuneration contract terms PG 74
• Accuracy = removal of risks & inconvenience
• Verifiably accurate, correct & up to date• Highly skilled & qualified staff• Hidden expenses• Payroll admin encompasses all the tasks
involved in paying an organisation’s employees
• Handling payroll-related problems are part of payroll admin.
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Getting started as a new employee• Labour statutes PG 75:
– Labour Relations Act– Occupational Health & Safety Act– Compensation for Occupational
Injuries & Diseases Act– Unemployment Insurance Act– Skills Development Act– Employment Equity Act
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Getting started as a new employee continued
• Employment agreement PG 75
–Employment relationship–Terms & conditions–Intention of employer &
employees–Written form
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Getting started as a new employee continued
• Employment Contract definition PG 75:
A legally enforceable agreement between two parties, where-by one party places his or her personal services at the disposal (and under the control) of the other party. This is for an indefinite or determined period, in exchange for a fixed or ascertainable wage.
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Getting started as a new employee continued
• Elements of an employment contract are PG 75:
– A time agreement must exist– It must be permissible by law– The parties must have legal capacity– Employer must have the power to control– Employee must place his or her services at the
employer’s disposal– Remuneration must be paid and must be fixed or readily
ascertainable– There must be consensus between the parties– Parties must have serious intention to create reciprocal
rights and duties and be legally bound thereby
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Getting started as a new employee continued
• Rights & duties employer & employees PG 76.
• Duties of one party constitute the rights of the other
• Basic Conditions of Employment Act provisions
• Update employment document• Letter of Appointment
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Getting started as a new employee continued
• Elements of employment contract Pgs 76 & 77: Company’s full name & address Full name of employee Occupation of employee/brief job description Employee’s place of work Date employment commenced Ordinary days & hours of work Wage or salary rate Method of payment Rate of pay for overtime Description of other cash payments Payments in kind Frequency of payment Deductions Leave (annual, sick, maternity, family responsibility leave) Period of notice Council or sectorial determination
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Compensation Package
• Basic compensation pg 94:
– Regular fixed pay– Pay incentives– benefits or indirect
compensation– Remuneration or benefits or
entitlements
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Different types of remuneration Pgs 95 & 96
• Commission• Performance bonus• Profit sharing plans• Piece-rate plan• Standard hour plans• Employee benefits
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Benefits mandated by law Pg 96
• Annual leave• Sick leave• Maternity leave• Family responsibility leave• Paid public holidays• UIF benefits• Compensation for injuries or
diseases contracted while working
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Cost to Company Pg 98
• Advantages– Budget– Tax structuring– Equity– Severance packages– Changes in legislation
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Cost to Company Pg98
• Disadvantages– Difficulty in understanding– Expensive to achieve pay
parity– Perceptions– Loyalty not retained– Cost of recruitment
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
C to C remuneration: Pg98
• Market related salary• Adequate cover for life,
disability & medical aid• Adequate provision for old
age• Unwelcome surprises from
SARS
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Induction of Employees pg 100
• Expectations• Induction programme• Set out hours of work, wage
rates, overtime, policy on leave & public holidays
• Pay system• Pay routine• Follow up
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Deductions: pg 100
• SDL• Loans• Savings• Training• Voluntary tax• Employee tax• UIF
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Employee’s payroll record pg 101
• Human Resource Management System
• Distribution System Record
• Access Timecard System Record
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Process records relating to employee movement pg 109
• New employee appointments
• Transfer of employees• Promotion of employees• Termination of service
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
New employee appointments & employee promotions pg 109 & 110
• Proper recruitment & selection procedures
• Amendments to payroll• Changes in payment rates• Excessive overtime claims• Valuable and useful background
information• Record of employee movements
within the organisation assist with decision making
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
New employee appointments & employee promotions continued
• Scrutiny• Trade unions• Common information• Employment policy & procedures• Payroll calendar• Deadlines• New employee information• Seasonal workers• Overtime• Master file record• Segregation of duties
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Transfer of employees
• Change in classification pg 111
– Rank & status– Salary or wage– Benefits– Relocation to another area
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
TerminationPg 112
• Resignation, retirement, death• Retrenchment• Dismissal
– Misconduct– Poor performance– Illness or disability
• Desertion / absconding• Incompatibility• Employee leaves by agreement
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Termination forms:• Withdrawal from pension or
provident fund• Banking details• Certified copies of personal
documents• Ill health discharge• Letter of resignation• Continuation with medical
aid
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Termination PayPg 113
• Notice pay• Leave pay
Retrenchment pay
• Notice pay• Leave pay• Severance pay
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
±12 types of RemunerationPg 113
• Housing/accommodation• Payments in kind• Car allowance/company car• Medical aid• Funeral or death benefits• Cash payments• Overtime• Performance bonus• Non-discretionary 13th cheque• Non-tool allowance• Commissions• Other remunerations
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Pay-out of “balance of leave”Pg 113
• If an employee resigns without giving notice, as required by law or in terms of their contract, they are in breach of contract. Notice pay not compulsory
• 3 weeks paid vacation leave unless employee is a casual.
• All payment must be effected through the PAYE scheme
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Implement instructions from external agencies
Pg 116 & 117
• Compliance of deductions not to compromise employee
• Statutory or non-statutory• Insurance policies
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Evaluate and record variations to payroll
Pg 117, 118 & 119
• Permanent & temporary variations
• Accuracy & reasonableness
• Analysed and queried
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Permanent VariationsPg 118
• Change for at least one year
• Permanent or temporary worker
• Probation• Wage negotiation strategy
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Essential for wage negotiations• Negotiator must have necessary
negotiating skills• Thorough preparation• Defined goals• Gather & analyse data• Devise a strategy• Strike rules• Right people & resources• Concessions• Calm, rational, impersonal, cordial &
focused• Deadlock = experienced mediator
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Pg 121
Temporary variationsPg 121
• Absence from work• Hours worked• Special payments• Extra duty payments
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Shift WorkPg 121
• BCEA does not define shift work
• Code of Good Practice on Arrangement of Working time describes different types of shift work
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Absenteeism managementPg 122
• Temporary variation• 1 day absent = 3 days
salary• Hidden costs• Identify patterns• Leave administration• Doctors certificates
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
ConclusionPg 124
• Recording & validating employees records is very important
• Personnel file• Continuous updating• Changes in employee’s
personal details• Confidentiality
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns