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Sage One Payroll Getting Started Guide

Getting Started Guide Sage One Payroll October 2015

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© Sage South Africa (Pty) Ltd 2002 - 2015 Page 2 of 76

Copyright Notice © Copyright 2015 by Sage South Africa under the Copyright Law of the Republic of South Africa. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into a human or computer language, in any form or by any means, electronic, mechanical, magnetic, optical, chemical, manual or otherwise without the express permission in writing of Sage.

Disclaimer Sage South Africa makes no representation or warranties with respect to the contents hereof. Further, Sage South Africa reserves the right to revise this publication and to make changes in the content hereof, from time to time, without obligation to notify any person or organisation of such revision or change. The sole purpose of this help file is to provide the registered users of the software with adequate information on how to operate this system. The use of this information for any other use is prohibited.

Published by: Sage South Africa PO Box 38017 Garsfontein East Pretoria 0060

Trademarks Notice and Copyrights © Sage South Africa (Pty) Ltd 2015. We hereby acknowledge the copyrights and trademarks of all terms we use in this manual and its accompanying electronic documentation. This includes, but is not restricted to, the following names and terms. The following are the property of the Microsoft Corporation and / or its subsidiaries: Microsoft SQL Server MSDE Windows 95, Windows 98 Windows NT Windows 2000 Windows XP Windows Vista Windows 7 Windows 8 Windows 10

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Acknowledgements Content Developer and Editor: Lorna Bam Layout, Design and Graphics: Lorna Bam and Gerhard van der Berg Proof Reader and Quality Controller: Maryna du Toit


Table of Contents

Introduction .............................................................................................................................................................................. 5

Terminology ............................................................................................................................................................................. 6

The Hosting Site ...................................................................................................................................................................... 7

Getting Started ......................................................................................................................................................................... 8

Steps to sign up as a user on Sage One Payroll ..................................................................................................................................... 8

Admin Tasks .......................................................................................................................................................................... 16

My Profile ................................................................................................................................................................................................................ 16

Change Password ............................................................................................................................................................................................... 17

Reset Your Password ........................................................................................................................................................................................ 17

Unlock your account ........................................................................................................................................................................................... 19

Add a Company ..................................................................................................................................................................... 20

How to Switch between Companies or Reach the “My Dashboard” View .................................................................................. 22

Add an Employee .................................................................................................................................................................. 23

Deleting an employee ....................................................................................................................................................................................... 24

Ending employment ........................................................................................................................................................................................... 24

Client Information ................................................................................................................................................................. 25

Account details ..................................................................................................................................................................................................... 26

Invoice details ....................................................................................................................................................................................................... 26

Support .................................................................................................................................................................................................................... 27

Company ................................................................................................................................................................................. 29

Company Details ................................................................................................................................................................................................. 29

Manage pay periods .......................................................................................................................................................................................... 32

Cycle Details ......................................................................................................................................................................................................... 32

Dates & Periods................................................................................................................................................................................................... 33

Setup benefit funds ............................................................................................................................................................................................ 34


Payroll ...................................................................................................................................................................................................................... 38

Hours and rates ................................................................................................................................................................................................... 38

Employment Tax Incentive ............................................................................................................................................................................. 40

Payslip ...................................................................................................................................................................................................................... 41

Private Benefits .................................................................................................................................................................................................... 43

Payslip Details ...................................................................................................................................................................................................... 45

Month To Date ..................................................................................................................................................................................................... 45

Year To Date ........................................................................................................................................................................................................ 46

ACB .......................................................................................................................................................................................................................... 46

Roll Over and Roll Back ................................................................................................................................................................................... 49

Reports and Exports .............................................................................................................................................................51

UIF Declaration ...................................................................................................................................................................... 58

UIF Submission ................................................................................................................................................................................................... 58

Manage Additional Users .................................................................................................................................................... 60

Processing the Payroll from A - Z ..................................................................................................................................... 60

Introduction ............................................................................................................................................................................................................ 60

Input Documents .................................................................................................................................................................................................. 61

Adding New Employees ................................................................................................................................................................................... 62

Explain Company Policy .................................................................................................................................................................................. 63

Changes to Employees Particulars ............................................................................................................................................................. 63

Changes that affect the Tax Calculation ................................................................................................................................................... 63

Changes to transactions which could affect employees .................................................................................................................... 65

Terminations ......................................................................................................................................................................................................... 66

Reconciling income and deductions ........................................................................................................................................................... 68

Balancing earnings and deductions to input documents .................................................................................................................... 68

Reconciling this period’s earnings and deductions to those of the previous period ............................................................... 69

Producing Payslips .............................................................................................................................................................................................. 71

Producing Reports ............................................................................................................................................................................................... 71

How to Videos ........................................................................................................................................................................ 76


Introduction Sage One Payroll is an online payroll solution.

Sage One Payroll is a SAAS product. SAAS is the abbreviation for Software as a Service and is sometimes referred to as "on-demand software". It is a software delivery model in which the software and the user’s data are hosted online, and the user uses a web browser to access the software and their data over the Internet.

Sage One Payroll aims to provide a cost effective and easy-to-use payroll for the SME market. There is no cap on the number of companies or employees that can be loaded. The payroll functionality that the user requires determines whether Sage One Payroll is the payroll solution for them.

Sage One Payroll currently caters for:

Monthly, weekly and biweekly payrolls

multiple companies and

unlimited employees.

To ensure that the system remains user friendly, easy to use and easy to support the customizability has been limited. Earnings and deductions and basic calculations (such as overtime) have been pre-defined.


Terminology

Terms Information

Hosting Site The website from where the user accesses Sage One Payroll is called the hosting site.

Client The person who opens an account with Sage One and is liable for paying the account.

User The person who logs in and processes on Sage One Payroll.

User Interface (UI) The UI is everything that is designed into an information device with which a user can interact. This will include the display screen and the software’s appearance on the user’s desktop as well as how a Web site invites interaction and how the user responds to it.

Company This is the PAYE entity or employer.

Pay Cycle The pay frequency cycle.

Pay Period Pay periods fall within a pay cycle. There are thus 12 pay periods (months) in a monthly pay cycle, 26/27 pay periods in a fortnightly pay cycle and 52/53 pay periods in a weekly pay cycle.

Definition These are all your earnings, deductions, company contributions and fringe benefits. Definitions are pre-defined in Sage One Payroll and editing has been limited (e.g. descriptions and multipliers). Templates are used to select which definitions are used in each company.

Transaction We refer to the input that is done on all definitions as transactions. Sage One Payroll allows for multiple transactions on each definition.

Views The different screens in Sage One Payroll is referred to as “views”. We thus refer to, for example, the Company Detail view, the Payslip view, etc.

Minimised view The blue blocks displaying to the right of the screen while another view is maximised.

Tiles Each employee is displayed in a tile on the employee list.

Expander Views are divided into different sections, indicated by blue headers and triangles to the left. These sections can be expanded and collapsed but the user.

Switch The action to move between companies or tax years.


The Hosting Site Information can be found on the following pages on the hosting site:

Product Info

o Contains general information about Sage One Payroll and Sage One’s other products and services.

FAQ

o This page contains basic questions about Sage One Payroll, as well as information regarding Tax,

SDL and UIF. This page also has links to registration forms and websites with more information on

each topic.

Contact Us and Support

o These pages contain all the phone numbers and contact details for Sage One

Login

o This is the page where all existing users log into Sage One Payroll. Users can bookmark this page.

o This page also contains details of what was released in each software update.


Getting Started Steps to sign up as a user on Sage One Payroll

Go to the Sage One Payroll website: http://payroll.sageone.co.za/

The following screen is displayed:

Select BUY NOW.



Select Buy Now. The following screen is displayed:


Complete the details on the Sign Up page. This is the information that will be used as the user’s login

details.

o Your name and surname – This is the client name and surname.

o Email address – This is the email address the user will use to log into Sage One Payroll. This email

Address is also used for all correspondence from Sage One Payroll such as activation and reset

password emails. It is thus important that an active email address is used.

o Password – The password must be at least 8 characters long and contain at least one capital letter,

one small letter and one number.

o Confirm password – The user must retype the password to ensure that the correct password was

entered.

o How did you hear about us? – You can indicate where you heard about Sage One Payroll.

The options to select from are:

Got an email about Sage One

Got my info from the Sage One website

I saw an ad/billboard of Sage One

I used another Sage product before

I was referred by my auditor/accountant

I was referred by someone

o Voucher number – You can enter your voucher number if you have one.

o Terms and Conditions – You can click on Terms and Conditions to read it before flagging the

checkbox to be able to continue.

After the details have been entered select Next.



Complete the details on the Sign Up page. This is the information that will be used to generate the

usage invoice from Sage One Payroll at the end of each month.

After the details have been entered select Next.



o The invoice will be issued to a – One of the following options must be selected:

Company/CC,

Partnership,

Person


If the Company/CC is selected, then the following information must be supplied:

o Registered name of company

o Registration number


If the Partnership or Person is selected, then the person’s name and ID number must be

completed:

o I am Registered or Not Registered for VAT

Select the applicable option from the combo box. If you are registered for VAT then

you must supply your VAT number.

o An order number can be supplied, if you make use of order numbers.

Important Information

Please note that the contact details can default from the original detail already completed or alternatively you can add another person for invoice queries.

If you have an existing demo account and loaded your own companies on the demo

software, you will be able to select to make the companies live.

Select the checkbox next to the companies that you want to keep. Select Finish to

complete the sign up process.




Please note that an activation email will be sent to you with a link on it. When you click on this link, you will be prompted to enter your email address and password.

The registration process is only complete once you have selected the activation link. You will

not be able to access Sage One Payroll before activating your account.


Admin Tasks Sage One Payroll allows you to perform certain tasks to manage your profile and accounts.

My Profile

From the top black navigation bar click on the dropdown arrow next to your email address and select My Profile.

You will be able to edit your details from this view.

Display Name – The name that will be displayed for this user.

Email Address – The email address linked to this account.

Clients I am linked to – The user’s information will be displayed here including the site code and the date that the account was registered on.


Change Password

Click on the Change Password button. A screen will be displayed allowing you to type a new password. Make sure that your password is at least 8 characters long and contains at least 1 upper case letter, 1 lower case letter and a number. You cannot make your password your email address or any portion thereof.

Reset Your Password

If you forgot your password, you can reset it.

Go to the Sage One Payroll website: www.payroll.sageone.co.za

Click on Login.

Click on Forgot password? to reset the password.

Enter the email address for which the password must be reset.


The following confirmation screen displays:

In order to setup the new password, the user must click on the link in the email sent by Sage One Payroll.


You will now be prompted to enter the new password. Click on Submit.

You may now log in with your new password.

Unlock your account

You have 5 attempts to log into Sage One Payroll. After 5 unsuccessful login attempts, you will be locked out of Sage One Payroll. A red error message will indicate how many attempts you have remaining.

Once locked out, the following message will be displayed to the user.

The user can request their account to be unlocked. If you click on Click here to request your account be unlocked an email will open where you can request support to unlock their account. The account is automatically unlocked after 24 hours.


Add a Company

After successfully signing up and activating an account, you will be prompted to add a company when you first log into Sage One Payroll.

On the main navigation bar select Company and then click on Add new company or you

can select the Add Company button. The following screen is displayed:

or

After selecting the option the following screen is displayed:

Enter the registered Company Name and also enter a Company Number

(0001 – 9999).


Please note that if you do not select a unique company number, the next available number will be displayed for you.


Select Next. The following screen is displayed:

Add a cycle name (for example, Monthly Salaries), choose a cycle frequency and add the date

that the financial year will begin on.


Please note that the company tax year start date is automatically set according to the date selected here. If the wrong date was selected and the process was finalised, the date cannot be changed. A new company should be added and the company with the wrong date should be changed to “HISTORY”. To change to history, change the company name on the Company details view.

Select Finish once all the information has been entered. The following screen is displayed:

Enter the company’s details as requested on the screen.

Once all the information has been entered, select Save.


How to Switch between Companies or Reach the “My Dashboard” View

Follow these steps:

From the Company Details view, click on the green Change Company or Cycle button inside the

black bar at the top:


Click on the company and the cycle you wish to switch to.


Add an Employee

Click on Employee in the main navigation bar and select Add new employee.

In order to add an employee, Sage One Payroll initially only requires 4 fields:

Surname,

Date of Birth,

Date Engaged and

Tax Status.

Additional Information

Please note that in order to generate tax certificates, Sage One Payroll will require all mandatory fields as required by SARS. The following are mandatory fields required before you will be able to generate a tax certificate:


Deleting an employee

An employee can only be deleted in the first period that you load the employee, by going to the employee’s details and clicking on Delete Employee.

Ending employment

Ending employment can be done by clicking on the End Employment button. This button is available when you click on Employee in the main navigation bar and select Employee details or by accessing the Hours and rates, Employment tax incentive, Payslip, Private benefits, Payslip details or Year to date values from the Payroll selection in the main navigation bar. You will also be able to access it from the Leave option on the main navigation bar by selecting Employee leave details or Employee leave transactions.


Client Information From the main navigation bar click on the dropdown arrow next to your user name and select

Manage Accounts.

The following screen will is displayed:

Client Information has 3 tabs:

Account details

Invoice details

Support


Account details

Account details contain the details of the person/entity that will be invoiced, the address and contact details. Most of the account details are completed by you during the sign up process. This information can be changed at any time.

Invoice details Invoice Details holds all the invoices and the bank details. The unpaid invoices are grouped together, so that you can see which invoices are outstanding.

Invoices are always generated on the last day of the month. You are then billed for all usage during the month.


Support

You now have the option to give support consultants support access to assist with a query or to do an off-site consultation. This means, the consultant can log into your account without having to ask for your login details.

By clicking on Grant access the following screen is displayed:

Once you click on the Grant access button, the Support desk will have access to your information for 24 hours or until you decide to stop the access. Once you click on Grant Access you will see the date and time when the 24h session starts. You will also get a reference number for this support session.


Please note that you must always log out of the system while the consultant is investigating. If both you and the consultant try to make changes the system will give errors. ALL changes made to the system will be discussed with you and confirmed that it is correct.


To cancel the support session, you can click on Cancel Access as indicated below:

By cancelling the session it will not automatically log out the consultant. The consultant should still click on Log out, but will then not be able to get back into the system as the access has been cancelled.

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Company

Company Details

From the main navigation bar select Company and then Company details.

There are 5 sections on the Company details view.

The Company section contains the following information:

Company Number

This is the company number entered when the company was added, and can be changed here. It

is any number between 1 and 9999.

Company Name

Enter the company’s registered name. This can be followed by the company’s trading name.

Company Registration Number

If this is a registered company or cc, enter the registration number here.

Tax Registration Number

If the employer is registered for PAYE, then enter the PAYE number, otherwise enter the

employer’s Income Tax Number.


Trade Classification

Select the applicable trade classification for the employer.

SDL Payment Reference Number (SARS)

This is the SARS payment reference number for SDL and must only be completed if the employer

is paying over SDL to SARS.

UIF Payment Reference Number (SARS)

This is the SARS payment reference number for UIF and must only be completed if the employer

is paying over UIF to SARS.

UIF Registration Number (Debt of Labour)

This is the UIF registration number as issued by the Department of Labour.

Not eligible for Employment Tax Incentive

This dropdown menu allows you to select an option for not being eligible for ETI.

Standard Industry Classification

Enter the SIC code. This code can easily be found by searching for it on the internet.

Special Economic Zone

A Special Economic Zone is an economic development tool to promote national economic

growth and export by using support measures in order to attract targeted foreign and domestic

investments and technology.

The Physical Address section contains the following information:

Enter the employer’s physical address.


The Postal Address section contains the following information:

Enter the employer’s postal address. If the postal address is the same as the physical address, flag the

Default from physical address checkbox.

The SARS Contact Person Detail section contains the following information:

Contact person

Email Address

Contact Telephone Number

The UIF Contact Person Detail section contains the following information:

Contact person

Email Address

Contact Telephone Number

If the UIF contact person details are the same as the SARS contact person details, flag the Default from physical address checkbox.


Manage pay periods

From the main navigation bar select Company and then Manage pay periods.

Manage pay periods has 2 tabs:

Cycle Details

Dates & Periods

Cycle Details

This view contains the current company’s information and cycle information. You can add new cycles here by clicking on the Add New Cycle button.


Close cycle

You can flag cycles that are no longer in use as closed. This will typically be used when a business or business unit closes.

The closed status is mainly used to include the cycle when generating tax certificates - we don't expect the cycle to have rolled a full tax year.

You are able to flag a cycle as closed if:

All the employees in the cycle has been terminated and

The user rolled out of the period in which the termination is effective.

If these conditions are not met, a report with the relevant information will display.

Dates & Periods

This view allows you to edit period end dates of weekly and biweekly companies and move periods to other payroll months.

Roll Over and Roll Back

Each period that you roll forward is recorded here and marked when completed.

Rollover

You can select to roll over to the following period by clicking on this button. A backup is

automatically made as part of the roll over process.


Roll back

You can select to do a roll back if you have to go back to a previous period. A roll back is

different to restoring a backup. When you restore a backup of a previous month all data is

restored to what it was at the time of the backup. When you roll back only your financial history

(or anything affecting financials, such as tax status, age, etc.) is restored to what it was in the

previous period. You are only allowed a maximum of two roll backs per company and you cannot

roll back over tax years or to periods that you did not roll over from.

Setup benefit funds

From the main navigation page click on Company and select Setup benefit funds.

From the Manage Benefit Funds view you will be able to add a pension, provident of medical aid fund.


Pension and Provident Funds

Adding a pension or provident fund requires that you click on the Add pension fund or Add provident fund button. Adding these funds will require the following information:

Fund Name

Give the fund you wish to add a name. Clearance Number

If a clearance number is provided this can be added but this field is not mandatory. Description

To describe this fund. % Calculation or Fixed Amount

You must select whether the calculation setup is based on a % that must be calculated or will it be a fixed amount.

Calculation based on This field requires that you select the type of calculation from a dropdown menu.


o Fixed Pensionable Earnings Amount

This selection changes the Calculation will be based on field to an amount field, allowing

you to type in the amount that the calculation will be based on.

o Percentage Of Specific Earnings

This selection changes the Calculation will be based on field to % field, allowing you to

type in the value % that the calculation will be based on and adding a selection dropdown,

containing all the income transactions, to select which incomes the % will be based on.

o Specific Earnings

This selection is the default selection and changes the Calculation will be based on field

to a selection dropdown, containing all the income transactions, to select which incomes

the % will be based on.


o Employee Contribution

This field allows you to enter a value for the % the employee will contribute of the above

calculated/given amount.

o Employer Contribution

This field allows you to enter a value for the % the employer will contribute of the above

calculated/given amount.

Save once you have entered all the information needed.

Medical Aid Fund

Adding a medical aid fund requires that you click on the Add medical aid button.

Fund Name

Give the fund you wish to add a name. Scheme Name

Provide the Scheme Name.


Please note that adding a medical aid to the payslip of the employee will be done by adding the transactions on the payslip itself.


Payroll

The Payroll dropdown view is separated into 2 sections:

The first section contains all the payslip details and information.

The second section allows you to do a roll over and roll back as well as print or email payslips.

Hours and rates

When adding an employee you can add the employee’s monthly salary, rate per hour or rate per day on the payslip view when entering the basic salary or you can access the Hours and Rates view and complete the fields there.


Adding rates from the Hours and Rates view:

From the main navigation bar select Payroll and then Hours and rates.

If you want to enter the number of days or hours worked every period, and do not want Sage One Payroll to default the employee’s salary after every roll over, flag the This employee must not be paid unless hours or days worked are advised checkbox.

Adding rates from the Payslip’s View

From the main navigation bar select Payroll and then Payslip. (Click on the Payslip tab.)


The basic salary line will always default on the payslip screen of monthly cycles. If you click on it the below screen will display. You can enter the employee’s rates here, or advise any once off amounts to be paid.

If the basic is not to be paid this month, you can flag the I do not want to pay this Basic salary this month checkbox.

Employment Tax Incentive

The Employment Tax Incentive legislation will encourage employers to hire young people by reducing the amount of PAYE you have to pay to SARS, thereby, reducing the cost of employment to the employer while leaving the employee’s earnings unaffected. The effective date of the legislation is 1 January 2014.

For more information regarding ETI, you can contact a support consultant:


Payslip

From the main navigation bar select Payroll and then Payslip.

The payslip has sections for earnings, deductions, company contributions and fringe benefits.

In order to add a new transaction to the payslip, click on in the applicable header. Select the transaction you want to add and capture the information required on the side menu.

1. Click on .

2. Select transaction.

3. Enter values.

4. Click on Ok then click on Back

to Payslip.

5. Transaction added.


Intelligent calculations on the payslip

Annual bonus – In Sage One Payroll we designed the annual bonus calculation to be an

intelligent calculation making adding, editing and deleting the annual bonus with or without

provision and for a current or future month, as easy and simple as possible. It all starts with the

way the annual bonus transaction popup works.

Select from the earnings heading

Then select Annual Bonus.

Once you have selected the annual bonus definition you can either choose a manual bonus value or a 13th cheque.

Once selecting the system must calculate a 13th cheque you will then be able to select any date after the current processing month that you are in on Sage One Payroll in which you want to pay out your 13th cheque.


You also have the option to select the bonus provision period. You can either provide for the annual bonus until the bonus is paid or you can select to provide until the end of the tax year.

You can however change this option from month to month up until the month the bonus is paid and Sage One Payroll will recalculate the provision according to the options you make.

It is imperative that you take note of the bottom message. If the company is not flagged to pro rata a 13th cheque when paid to an employee, the employee will receive the full value. Alternatively you can select a manual bonus value.

Private Benefits

From the main navigation bar select Payroll and then Private Benefits.

Private Benefits has two expandable views:

Private Retirement Annuity

A Private Retirement Annuity can be added by clicking on the add option next to it.


This will expand the view once more.

Enter the amount that the employee is contributing and the date from which the contributions will start. You can also add a clearance number if you have one.

Private Medical Aid

A Private Medical Aid can be added by clicking on the add option next to it.

This will expand the view once more.

Enter the amount that the employee is contributing and the date from which the contributions will start. You can also add a clearance number if you have one.


Payslip Details

From the main navigation bar select Payroll and then Payslip Detail.

The Payslip Details view will display all the transactions on the employee’s payslip in a summative format as well as the amounts that the system will use to do statutory calculations. This view can come in very useful when doing manual calculations.

Month To Date

From the main navigation bar select Payroll and then Month To Date values.

The Month To Date view provides you with a table containing all the figures loaded for the employee for the month, up to the current date.


Year To Date

From the main navigation bar select Payroll and then Year To Date values.

The Year To Date view provides you with a table containing all the figures loaded for the employee for the year, up to the current date.

ACB

From the main navigation bar select Payroll, ACB and then ACB Setup.

When setting up the ACB layout you can select from the following option:


Each selection has its own criteria:

ABSA Business Integrator

FNB Online Enterprise

Netbank

Standard Bank Business Online


After entering the details you can save and export the information. By clicking on the Export button you will be prompted to give more information specific to the type of bank selected previously.

Once the information has been entered click on Process.

The Export to PDF button will display the file in PDF format. The Download button will download the file to your Downloads folder and can be accessed there to import into the banking website.


Roll Over and Roll Back

The roll over or roll back functions can be performed from two different options. From the main navigation bar, click on Payroll and then select either Roll over to new processing period or Roll back to previous processing period. From the black top navigation bar select the Current Period: option for a dropdown menu and select either Roll Over or Roll Back.

Roll Over


Roll Back


Reports and Exports From the main navigation bar select Reports.

The report to choose from are available on the left.

Select a section and then a report to the left, then click on Preview.

The report will be displayed on the right. Now you can print the report to printer.


Or you can export the report to any of the following formats:

The Reports that are currently available are:


Email payslips

You can email current and previous plain paper payslips to your employees.


Please note that payslips are emailed to the email addresses entered on the employees' Employee details views. Please ensure that the correct email address is entered.

Follow these steps to email a payslip:

1. From the main navigation bar select Reports or select Payroll and then Print or email payslips.

2. From the reports selection bar select the dropdown arrow next to Payslip.

3. Select the Current/Previous payslip – Plain Paper Payslip option.

4. Select the pay period.

5. Select the specific employees you want to include in the report.

6. Select whether to exclude employees with zero or negative nett pay.

7. Select whether you want to sort this report by

o Department, or

o Pay Point.

The default selection is "None".

8. Select whether you want to sort the employees by

o Surname (default sort option), or

o Employee code.

9. Select the pay date.

10. Select the type of rate, which balance to use, company contributions, fringe benefits, private

benefits and which leave balances to print.

11. Select Preview.

12. Click on .


13. A popup with the following information will display:

The employee’s date of birth is used as the password, and the format is yyyymmdd.

Click on Send Payslips to email the payslips to the listed employees. The employees will receive an email with a PDF payslip attachment.


UIF Declaration From the main navigation bar click on UIF Declaration.

UIF Submission

The contact details on UIF Submission view defaults from UIF contact person details entered on the Company => Company Details view. If no information is saved on the Company Details view, the user will have to manually enter the details every time a submission is done.

When all the required information is entered, click on the Submit UIF button.

The file is now checked for validation errors. A popup will appear if there are errors – the user

can select to submit the file with the errors, or to stop the submission and view the error report.

After validation, Sage One Payroll will email the submission directly to the UIF email address and

also CC’s the user.


The UIF Submission Report and UIF Error Report are then generated and can be previewed on screen.


Manage Additional Users From the main navigation bar click on Manage Additional Users.

Sage One Payroll has made it possible for more than one user to be accredited to one company. By accessing the Manage Additional Users view you will be able to add additional users. Simply click on the Add New User button and enter the new users email address. You will be able to limit the new user’s access by only giving them access to certain areas of the company created.

Processing the Payroll from A - Z Introduction

Depending on the payroll administrator’s job description, the tasks that he/she will be responsible for will differ. There are however certain duties that every payroll administrator will encounter at some point in their career.

This section attempts to provide the payroll administrator with a list of such tasks and a checklist to be used as a guideline for the processing cycle.


Input Documents

It is advisable that standard input documents are used in order to streamline the record keeping of payroll information and to minimise human error. It is important that all input documents are authorised by the relevant person responsible, who will eventually assist in the yearly audit of the payroll by the company’s auditors. This will ensure that changes are only made with due authorisation.

The payroll administrator should ensure that all the required input documents relating to the pay period is acquired for processing.

Documents required will include:

Clock cards or other input documents relating to normal hours worked, overtime hours worked,

unpaid leave days, etc.

Letters of appointment or service contracts for new employees.

Transfer letters of employee’s to other branches, changes in department or pay points.

Changes to medical aid tables received from medical aid.

Medical aid adjustments, if these are processed through the payroll.

Changes to pension fund or provident fund calculations received from the relevant fund.

Changes in the personal particulars of employees such as the number of medical aid

dependants, change in marital status, etc.

Increases across the board or for specific employees.

Bonuses to be paid in this period.

New loans or changes to loan repayments for the period, and interest on loans.

Changes to savings for the period.

Changes to third party payments such as bonds, insurances and garnishee orders.

Changes to fringe benefits.

If the payroll administrator is responsible for updating leave, they must have leave input forms

available for the different types of leave i.e. annual leave and sick leave.

Letters of resignation and documents relating to terminations.

It is important that the responsible person approves all documents, e.g. overtime signed by the relevant supervisor, increases and bonuses authorised by the head(s) of the relevant department(s).


Adding New Employees

The administrator must ensure that they have all the information required to process new employee payroll information.

Legal requirements

A contract of service is required when a new employee joins the company. This must include at least the name of the company, the name of the employee, the engagement date and the starting salary of the employee and basic conditions of employment. As this is a legal document it must be signed by both the employer's authorised representative and the employee in the presence of two witnesses, and each page must also be initialled.

For Income Tax purposes

The employee must furnish the employer with his/her personal details and an income tax reference number. The payroll administrator or the relevant responsible person must obtain this reference number. If the employee is not already registered as a taxpayer he/she must apply for a tax reference number from the Receiver of Revenue and this can be done using e-Filing as well as with e@syFile.

Bank Details

If employees are paid via bank transfer, or by any other electronic means, it is necessary that the payroll administrator acquires their correct banking details, i.e. the branch number of the bank, the type of account (current, savings or transmission) and the bank account number. It is advisable to check these particulars with the bank concerned, to ensure that his/her salary will be paid into the correct account.

Importance of Identity Number for UIF purposes

Employers are required to submit details of all employees, whether they are UIF contributors or not, to the Unemployment Insurance Fund each month. Provisions have been made for these details to be submitted electronically via e-mail. The Unemployment Insurance Fund will only pay benefits to employees who have contributed to UIF, and benefits will be based on the “UIF Remuneration” on which the contributions for the employee were calculated.


Occupational Injuries and Diseases (OID)

The OID Act states that when an employee is involved in an accident, which results in his/her disablement or death, such an employee or his/her dependant will be entitled to the benefits provided for and prescribed in this Act. The Act also provides for compensation if it is proved that an employee contracted an occupational disease or that an employee has contracted a disease other than an occupational disease, which has arisen out of and in the course of his/her employment.

It is not necessary to register individual employees with the Commissioner for occupational injuries and diseases.

Explain Company Policy

It is advisable to provide the employees with a copy of the company policies and procedures, and it is important that they sign an agreement that they have seen and understand the rules and regulations as set out by these policies and procedures. All the necessary industrial council and union requirements should also be included.

Some aspects to consider:

The employee might be required to join a specific union.

The employer may have to induct and train the employee according to specific requirements.

Union deductions may be required from the employee.

Changes to Employees Particulars

It is of utmost importance that all employee records are kept up to date at all times. The employee is expected to inform the payroll administrator of any changes to his/her personal particulars, e.g. change in address. This must be entered correctly since the employee's correct address must be printed on the tax certificate at year end.

In practice, employees frequently have to be reminded of this.

Changes that affect the Tax Calculation

Age

An employee’s age can affect the tax calculation. Employees that are older than 65 but not older than 75 receive an additional tax rebate of R 7 407.00. Employees that are older than 75 receive a further additional tax rebate of R 2 466.00.



Additional tax rebates are effective as of the start of the tax year in which the employee turns 65 or 75 respectively.

Medical Aid

If the company has a medical aid scheme for employees, the payroll administrator must ensure that the employee completes the necessary application forms and submit these forms to the medical aid scheme.

If the employee has added or removed medical aid dependants, his/her contributions to the medical aid scheme will probably change, and he/she will have to complete the necessary forms which must be submitted to the medical aid scheme. This will also affect tax since different tax credits are applicable based on the number of dependants on the medical aid scheme.

Pension, provident funds & retirement annuities

If the company has a pension, provident fund or retirement annuities for employees, the payroll administrator must ensure that the employee completes the applicable forms. Beneficiaries must also be named in certain cases. As these are legal documents they must be witnessed and any alterations must be signed. The required documents must then be submitted to the relevant fund or insurance company.

Pension, provident fund or retirement annuity contributions are unlikely to change except for annual contribution increases, but if, for example, an employee has married, he/she may well wish to alter the beneficiaries named. If this is the case, the necessary change of beneficiary forms will have to be completed and submitted to the relevant fund or insurance company.

Other changes that affects the tax calculation

Other kinds of changes that should be updated include:

Moving from one department to another.

If the company has different departments, branches or categories that could affect the costing,

it is important that this information is entered correctly and kept up to date.


Changes to transactions which could affect employees

Changes which could potentially affect all or certain groups of employees, include:

Changes in taxation.

Changes in medical aid structures.

Changes in pension or provident fund percentages or formulas.

Changes to the UIF percentages or limit.

Changes in interest percentages on loans or savings deductions.

New earnings or deductions that have not been used before, e.g. a garnishee order.

Information to be entered for individual employees, include:

Normal hours worked, usually for weekly or fortnightly paid employees.

Short hours worked, where applicable.

Overtime hours worked.

Advances, loans, or savings deductions.

Leave pay and leave deductions for weekly employees going on leave, e.g. during the

Christmas/annual shut-down.

Increases for individual employees.

Bonuses for individual employees.

Any adjustments to information which was incorrectly entered in a previous period.

Updating Employee Leave Records

If the payroll administrator is responsible for keeping employees' leave records up to date, all annual leave, sick leave or other leave days taken must be entered onto the software. Leave is subject to company policy and legislation, and it is therefore important that the payroll administrator is always up to date with company policy. For example, the payroll administrator needs to know whether the employee must produce a doctor's certificate if he/she is absent from work due to illness for more than two days within an 8 week period (Basic Conditions of Employment Act).

Annual leave records must always be kept up to date, since the company is required to make provision for the paying out of any leave days due to employees, if their employment is terminated.


Depending on company policy it might be required to increase the employee’s leave entitlement in certain circumstances. Company policy will define when leave entitlement will change.

Terminations

When an employee leaves the employment of the company there are a number of duties the payroll administrator needs to perform.

Obtain a forwarding address for the employee

This is important as the payroll administrator may have to send the employee his/her tax certificate and monies owing to him/her after he/she has left the company.

Ensure that the Company’s Termination Procedure is complete

This often forms part of the duties of the payroll administrator, and if this is the case the payroll administrator must ensure that all the requirements have been complied with. In addition to the other duties discussed in this section, specific procedures include:

The conducting of a termination/exit interview.

Obtaining any company property, such as keys, access cards, remote controls, laptop

computers etc. that are in the employee's possession.

The final payslip

The payroll administrator must have all the necessary information to process the employee's final payslip.

The following is of importance:

It might be necessary to calculate a pro-rata wage or salary for an employee leaving the

company based on the date of termination.

Does the employee have annual leave due to him/her?

If so, is he/she entitled to payment for this leave?

Does the employee have any loan balances outstanding?


Determine whether the total amount outstanding may be deducted from the final payslip, or if

the amount due to the company should be reclaimed in some other way.

Does the employee have any other monetary commitments to the company? For example, has

the employee bought anything on the company account for which he/she has not yet paid?

Is the employee entitled to a pro-rata annual bonus? What is stated in the service contract and

what is company policy in this regard? If the employee is entitled to such a bonus it must be

included in the final payslip.

If the employee retired or was retrenched, to what severance or gratuity payment is he/she

entitled?

Final Tax Calculation

For employees who are leaving the company, the employees’ tax must be calculated correctly.

Tax Certificate

The employee is entitled to receive his/her tax certificate for the period within the current tax year during which he/she was in service, within 14 days of leaving the employment of the company.

One copy of the tax certificate must be given to the employee, a second copy must be retained for company records, and the third copy must be submitted to SARS at tax year end.

Service Certificate

When an employee left the employment of the company the employee may request a service certificate stating the engagement date and the date when he/she left the company’s employment.

Pension, Provident and Retirement Annuity Funds

If the employee was a member of the pension, provident fund or retirement annuity, premiums were paid for him/her. The fund must be informed that he/she left the employment of the company. They may require information such as the employee's salary or wages over the last number of years in order to calculate the amount to be paid or transferred to another fund. All the forms required need to be completed prior to the employee leaving the company.



The lump sum amount paid out by a pension, provident or retirement annuity fund to the employee is not part of his remuneration and must not be taxed as such. A directive must be obtained from SARS to determine how it should be taxed.

Ensure that all necessary Union and Industrial Council requirements are completed

It may be required of the payroll administrator to inform the employee's Union and/or the Industrial Council that the employee left the company. If so, the payroll administrator should ensure that the correct procedure is followed.

Reconciling income and deductions

Reconciling is one of the most important elements of the payroll administrator's tasks. Reconciliation is necessary to ensure that all information captured on the system was entered correctly and that all costs and expenditures were accounted for.

Balancing earnings and deductions to input documents

After all input has been captured the payroll administrator should verify that each set of figures entered on the software agrees with the figures that they were given to capture.

Reconciling each earning or deduction as it is entered does not take a great deal of time and can save hours later. It is further recommended that a printout of the final information is attached to the relevant input document and that these are filed together.


Specific Sage One reports can be used for reconciliation purposes. If these reports do not reconcile, the necessary changes can still be made on the payslips, as long as the payroll administrator did not make any payments to any of the companies’ employees or to SARS for the current pay period.


Reconciling this period’s earnings and deductions to those of the

previous period

The payroll administrator should reconcile the amount of each earning and deduction for the current period to that of the last period, taking all changes into account. E.g. the total medical aid deduction may have changed due to any or all of the following reasons:

The rates were altered.

Employees left the company.

New employees joined the company.

The number of dependants for certain employees changed.

Employees have received increases.

A typical example of the required calculation, using the Basic Salary, is illustrated below:

FEDCBA OR FEDCBA

Where A = Previous month's total for Basic Salary.

B = Basic Salaries for employees terminated during the previous month.

C = Basic Salaries for new appointments in this month.

D = Increase amounts for this month.

E = Once off adjustments, e.g. Unpaid Leave, pro-rata payments etc.

F = This month's total for Basic Salary.

If the above calculation is done correctly and all factors are taken into account, the previous month's total for salary plus or minus all relevant changes should equal this month's total for salary.


Reconciling this period’s total payroll to that of the previous period

After each separate earning and deduction has been reconciled, the payroll total for the period should be reconciled to that of the previous period.

Exactly the same principles are used as described previously

CBA OR CBA

Where A = Previous month's total for payroll.

B = Current month's changes.

C = This month's total for payroll.

Reconciling weekly amounts to Month-To-Date figures

If the company pays weekly, the weekly amounts must also be balanced to the totals for the month. It is advisable to reconcile throughout the month.

In other words:

At the end of the second week, the month-to-date totals should correspond to the total for the

two weeks.

At the end of the third week, the month-to-date total should correspond to the total for the

three weeks processed.

And, if four weeks are processed for the month, the final month-to-date total should equal the

total of the four weeks processed.

CBA

Where A = Second week's payroll totals

B = First week's payroll totals

C = Second week's month-to-date payroll totals



From the Reports menu option, select to print the Periodic Variance report under the Financial reports. This report will detail changes between this period and the previous period.

Producing Payslips

The payroll administrator will be ready to pay the company’s employees once the payroll has been reconciled and payment has been authorised.

This involves:

Emailing or printing payslips, or completing manual payroll records.

Preparing the amounts to be paid to the employees, either in cash, by cheque or by using a bank

list for the electronic transfer of funds.


Sage One can print payslips onto 2 different forms of stationary, plain paper or secure payslip stationary.

Producing Reports

Once all the figures have been reconciled, the payroll administrator should print all the required reports.

These include:

The Payroll Totals - Consolidated, which will contain the totals necessary for the company's

books of account.

The EMP201 - Consolidated, which will contain the amounts to be paid over for PAYE, UIF and

SDL.


Lists showing how the amounts should be paid to outside institutions are made up, e.g. a list of

each employee's pension fund contributions and the total to be paid to the pension fund,

medical aid etc.

Any summaries of earnings, deductions and company contributions which the company keep

for quick reference.


Sage One includes a number of standard reports for all the required information mentioned above.

Periodic Payments

The payroll administrator will be responsible for:

Completing the returns for PAYE, UIF, SDL; and

Payments to institutions such as pension, provident, retirement annuity, medical aid funds and

insurance companies.

These returns and payments will then be handed over to the accounting department for payment or can be done by the payroll administrator.

The payroll administrator may also be responsible for other payments. When paying by cheque the payroll administrator must:

Make sure that the counterfoils are properly completed and indicate the name of the payee.

Take note of the period for which the payment is being made.

Specify the reason for the payment.

Indicate whether the payment only applies to a particular employee, e.g. maintenance or

garnishee orders.

Indicate the amount of the cheque.

Indicate the general ledger code for later posting by the accounting department, should this fall

within the company’s bookkeeping requirements.


EMP201 Return

The payroll administrator must complete the monthly EMP201 Return and submit it with payment to reach SARS within seven days of the end of each pay period.

This is the information to be used when submitting your monthly EMP201 Return to SARS.

Explanations of the different fields on the EMP201:

1. Trading Name: Enter the company or trade name on the Company => Company details view.

2. PAYE Ref No: Enter the PAYE Reference Number on the Company => Company details view.

3. SDL Ref No: Enter the SDL Reference Number on the Company => Company details view.

4. UIF Ref No: Enter the UIF Reference Number on the Company => Company details view.

5. PAYE: PAYE amount withheld by the employer.

6. SDL: SDL Employer Liabilities for the current month.

7. UIF: UIF Employer Liabilities for the current month.


8. Totals: After the form is completed, the amount that is due by you is displayed in this field.

UIF Electronic Declaration

Employers are required to submit details of all employees to the Unemployment Insurance Fund each month, whether the employees are UIF Contributors or not. (Details for Independent Contractors and Corporate Entities must not be submitted.)

This information must be submitted within 7 days after the end of each pay period. Sage One can produce the required information by UIF Declaration from the main navigation bar. By selecting this option Sage One will generate the electronic UIF declaration and automatically attach it to an e-mail. The e-mail will be addressed to [email protected].

The payroll administrator should print out the UIF Submission Report and file it with the other payroll information. The UIF Submission Report will display information similar to that displayed in the UIF electronic declaration.

The following information is displayed for each employee on the UIF Return:

Employee Code

Name and Surname

ID Number

Earnings

Total Contribution

Termination Date

Termination Status

Medical Aid Schemes

The payment and reconciliation dates for the different medical aid schemes may vary. Medical aid schemes require remittance forms, which will often include a schedule of the members and their contributions for the month, as well as a reconciliation report containing the following information:

EDCBA OR EDCBA

Where A = Contributions for the previous month

B = Members who no longer contribute to the scheme

C = New Members


D = Changes in contributions

E = Contributions for the current month

Pension, Provident and Retirement Annuity Funds

The payment dates for the different funds may vary. The requirements differ from fund to fund but will generally include a schedule of the members and their contribution for the month, as well as the company's contribution. A similar reconciliation to that of the medical aid is required.

Payments to Unions and Industrial Councils

The requirements of the different Unions and Councils differ, as do their payment dates. For this reason the payroll administrator must ensure that all the necessary payments were made by the required dates.

Payments to other institutions

These differ from company to company, and it is the responsibility of the payroll administrator to ensure that any amount payable to other institutions reach its destination in good time, and is accompanied either by the required forms or explanatory letter(s).

Bookkeeping Responsibilities

The payroll administrator must always remember that the final monthly figures from the payroll system must be reflected in the company's books.

The Salaries Cashbook

If the company has a separate salaries account at the bank, a salary cashbook must be kept. Entries that must be made in the salaries cashbook include:

Earnings and allowances paid to employees.

Deductions made on employee payslips.

Loans made to employees and repayments thereof.

The salary cashbook must be reconciled to the bank statement of the salaries account.


How to Videos Use the links below to access videos that will help you with your payroll:

Sage One Payroll Support - https://www.youtube.com/watch?v=AsShYYuj7hg

How to add a company - https://www.youtube.com/watch?v=WIWkw6bUfv8

How to add a cycle - https://www.youtube.com/watch?v=VQNWNvnUX2I

How to add an employee - https://www.youtube.com/watch?v=DPLyCbvp6mc

How to add a benefit - https://www.youtube.com/watch?v=WwqTh2kmHTk

Mid-Year tax submission - https://www.youtube.com/watch?v=Bcln59NkI4A