ICB PAYROLL & MONTHLY SARS RETURNS Learning module 2
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The document covers training for junior bookkeepers on payroll management and monthly SARS returns, detailing processes for planning, monitoring, and adhering to payroll regulations. Key topics include payroll cycles, fraud prevention, internal controls, and the importance of compliance with statutory requirements. It emphasizes the development of clear procedures and employee training to improve payroll efficiency and effectiveness.
ICB PAYROLL & MONTHLY SARS RETURNS Learning module 2
- 1. L E A R N I N G M O D U L E 2 PAYROLL AND MONTHLY SARS RETURNS ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
- 2. PLAN, ORGANISE, IMPLEMENT, MONITOR AND WORK WITHIN THE PAYROLL ENVIRONMENT • Employee expectations – pg 45 • Costing human resources • First Approach pg 46 • Second Approach pg 46 • Fixed costs • Variable costs • Opportunity costs • Payroll Administrator – pg 47 • Typical Duties of a payroll administrator • Tasks • Payroll and Payroll forms pg 47 ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
- 3. PLAN, ORGANISE, IMPLEMENT, MONITOR AND WORK WITHIN THE PAYROLL ENVIRONMENT • Plan payroll cycle and agree to payroll cycle – pg 50 • Payment options • Internal equity • External equity • Salary management • Human Resources • What is a payroll cycle – pg 50 • Pay periods • Weekly • Bi-weekly • Two to three times a year • Bi-monthly • Monthly • Yearly pay cheque • Commission • Per-job basis ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
- 4. PLAN, ORGANISE, IMPLEMENT, MONITOR AND WORK WITHIN THE PAYROLL ENVIRONMENT • Issues a payroll administrator need to deal with – pg56 • Fraud • Segregation of duties • System access • Processes and procedures • Alignment • Mistakes and SARS • Conforming to legislation & statutory regulations • Payroll Admin Manual • Verification • Compilation • Recorded • Indication • Final report • Earnings and deduction codes ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
- 5. PLAN, ORGANISE, IMPLEMENT, MONITOR AND WORK WITHIN THE PAYROLL ENVIRONMENT • Training and Resource allocation – pg 57 • Change management –pg 57 • Unfreezing • Transition • Refreezing • Economics and Cost Effectiveness • Statutory requirements and organisation procedures – pg 58 • UI19 • PAYE, SDL, UIF = 7th of the month • Medical Aid payments in advance • Pension Fund contributions (Debit order or ACB) ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
- 6. PLAN, ORGANISE, IMPLEMENT, MONITOR AND WORK WITHIN THE PAYROLL ENVIRONMENT • Prevention of payroll fraud – Pg61 • Valid and accurate control mechanisms • Payroll fraud • Segregation of duties • System access • Processes and procedures • Alignment • Credibility with employees, clients & SARS • Risk assessments • Review processes • Recommendations • Identify fraud instances • Origin of fraud • Weaknesses in system • How fraud took place • Confidentiality • Forensic experts ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
- 7. PLAN, ORGANISE, IMPLEMENT, MONITOR AND WORK WITHIN THE PAYROLL ENVIRONMENT • Prevention of Payroll Fraud continued • Internal controls – pg 62 • Reasonable assurance • Prevent fraud and corruption • Protect resources from • waste, • loss, • theft or • misuse • Uses resources efficiently and effectively ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
- 8. PLAN, ORGANISE, IMPLEMENT, MONITOR AND WORK WITHIN THE PAYROLL ENVIRONMENT • Prevention of Payroll Fraud continued – pg 62 • Employees personal data • Verifications • Information • Correspondence • Final payroll prior to pay roll run • Internal controls – Risk Management: • Adequate segregation of duties • Custody and accountability for resources • Prompt and proper recording and classification of transactions • Authorisation and execution of transactions • Documentation • Management supervision and review • Computer access and control ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
- 9. PLAN, ORGANISE, IMPLEMENT, MONITOR AND WORK WITHIN THE PAYROLL ENVIRONMENT • Evaluation and review – Pg 63 • Work outcomes • Use Performance reviews to: • Encourage and reinforce good performers • Goals and challenges • Training and talent • Identify problems and resolve them • Motivate and encourage • Performance reviews key points: • Keep focused on results • Do measures adequately equate with job success • Opportunity to motivate staff • Build relationships and understanding • Be positive • Support the values of the company ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
- 10. PLAN, ORGANISE, IMPLEMENT, MONITOR AND WORK WITHIN THE PAYROLL ENVIRONMENT • Reporting deviations – pg 64 • Reasons for deviations • Discuss deviations • Discuss misunderstandings • Discuss possible improvements • Implementing corrective action – pgs 64, 65 • Joint identification of problems • Explore change • Explore management opportunities • Work integration • Business opportunities • New revenue streams • Employee understands expected competence and delivery • Set new goals and objectives • Find answers • Performance reviews not limited to formal reviews, should be continuous ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
- 11. • Developing procedures to meet specified needs • Procedures are developed that meet identified needs and conform to statutory and organisational requirements • Tools • Structure • Compliance with obligations • Legislation • Staff morale • Respect for employees PLAN, ORGANISE, IMPLEMENT, MONITOR AND WORK WITHIN THE PAYROLL ENVIRONMENT ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
- 12. • Designs and specifications for procedures are developed in conjunction with users • What kind of workplace • Number of employees • Level of sophistication of employees • Top vs bottom layers • Managers • Unionised • One or many workplaces • HR Department PLAN, ORGANISE, IMPLEMENT, MONITOR AND WORK WITHIN THE PAYROLL ENVIRONMENT ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
- 13. • Designs and specifications for procedures are developed in conjunction with users continued • Three principles for drafting policies & procedures: • Use clear and simple language • K.I.S.S. • Pick format suitable to business • Different Formats • Standard forms • Checklists • Step-by-step • Specific rules or principles PLAN, ORGANISE, IMPLEMENT, MONITOR AND WORK WITHIN THE PAYROLL ENVIRONMENT ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
- 14. • Benefits and costs are formulated and agreed with decision makers • Centralised management of salaries function • Reduce reconciliation time • Human factor calculations • Implement and maintain procedures • Why • Fit the workplace • Three golden rules • Best format • Policies as part of employment contracts • List of policies • Laws and or collective agreements PLAN, ORGANISE, IMPLEMENT, MONITOR AND WORK WITHIN THE PAYROLL ENVIRONMENT ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
- 15. • Users must be provided with support to enable them to implement agreed procedures • Practicality of procedures often look easier on paper than what is actually achievable in practice • Installed procedures must conform to relevant statutory and organisation requirements • What laws apply • Specific laws and agreements applicable to company • Policies and procedures don’t conflict with legislation PLAN, ORGANISE, IMPLEMENT, MONITOR AND WORK WITHIN THE PAYROLL ENVIRONMENT ICB Junior Bookkeeper: Payroll & Monthly SARS Returns