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Payroll and HR software latest news and information updates | Softline Pastel Payroll

2010-03-02T06:44:32Z

Hefty Fines Loom for Companies that Miss Labour Department COID Returns Deadline
March 2009

The Department of Labour’s Compensation Fund is expecting all employers to submit their annual return of earnings before the end of this month... | more

Payroll Systems, Technology and Outsourcing for Business Success
March 2009

Making a success of business in normal circumstances is difficult enough, let alone under the shadow of the current international economic crisis with reduced spending power impacting adversely on sales... | more

New Business Travel Tax Claim System made Easy with Pastel Payroll’s Electronic Logbook
March 2009

The current tax year to 28 February 2010 is the last year in which SA Revenue Services will allow the “deeming provision” where the first 18000km is deemed to be private travel and the balance... | more

Payroll Systems Critical for Start-Ups and Micro-Enterprises
March 2009

Entrepreneurs involved in start-up companies need to pay particular attention to two administrative areas, accounting and payroll... | more

Boundaries Between HR and Payroll Disappear with New Software Functionality and Features
February 2009

The functions of human resources departments (HR) and payroll administrations in SME businesses are merging. Barriers between the two continue to fall away as payroll software undergoes radical development to cater for changing demands... | more

Budget Speech Good News on two Fronts for Taxpayers
February 2009

There is good news on two fronts for taxpayers in the tax and medical aid-related revisions in the 2009/2010 budget announced by Finance Minister Trevor Manuel this afternoon (Wednesday 11 February)... | more

New PAYE software from SARS replaces e-filing and must be used for the 2009 tax year
February 2009

Employers in the 2009 tax year are required to use the e@syFile PAYE system launched by SA Revenue Services. In 2009 the e@syFile PAYE system will replace the online eFiling solution that many employers have successfully used during the Employer’s Filing Season 2008 for PAYE reconciliations... | more

Payroll Outsourcing Services the answer says National Paint Supplier
January 2009

Marouns Auto Paint Centre, a national automotive paint specialist headquartered in Troyeville, Johannesburg, with branches in Vereeniging, Benoni, Cape Town, Durban and Pretoria, has realised significant benefits from outsourcing it’s company payrolls to Softline Pastel Payroll... | more

Payroll and HR software latest news and information updates | Softline Pastel Payroll

2010-03-02T06:44:16Z

Mass market ERP demystifies concept of ERP
June 2009

I have a general dislike of acronyms like ERP (enterprise resource planning) because, for business people, they create an entirely undeserved mystique around technology. As a consequence, they create confusion and, therefore, additional resistance by business people to technology... | more

Pastel Evolution Payroll & HR’s ESS Module Enables on-Line Interaction with Staff
June 2009

An employee self-service (ESS) module developed by payroll software specialist Softline Pastel Payroll, is designed to provide companies, management, payroll administrators, the HR department and staff with significant benefits and advantages – even assisting with records such as business travel for tax deductions... | more

Pastel Payroll Online CRM assists Channel partners and customers
June 2009

Payroll and HR software developer Softline Pastel Payroll has introduced an online CRM system for customers and channel partners. The web-based system is accessible in two zones established on the web, a customer zone and a reseller zone... | more

Pastel Payroll Launches New HR Software Solution For Medium To Larger Businesses
June 2009

Pastel Evolution Payroll and HR software developed by Softline Pastel Payroll for medium to larger sized businesses is not only customisable but also offers an HR module called Pastel Evolution HR, a software solution focused on streamlining and improving the efficiency of day-to-day human resource management... | more

New Pastel Evolution Payroll & HR Software Presents Customisable Functionality
June 2009

A best-of-breed software solution that presents customisable, adaptable payroll and HR functionality on a highly secure Microsoft SQL database for medium to large sized businesses has been developed and launched by Softline Pastel Payroll... | more

HR Software: The Incremental Approach To A Giant Jigsaw Puzzle
June 2009

Companies have in the past thrown big money at all-encompassing HR software solutions. Two years later they invariably end up using just 20% of the functionality as they begin to discover the remainder is either not applicable or practical... | more

Small municipalities can be as efficient as larger ones, thanks to cost-effective software
June 2009

It’s now easier than ever for small municipalities to stabilise their revenue streams through efficient accounting and billing. According to Mohammed Mosam, divisional director at Softline Pastel, ordinary accounting systems are unsuitable for municipal use and often lead to financial difficulties in smaller municipalities... | more

Points To Remember When Selecting A Payroll & HR Software Solution
May 2009

Payroll has become a critical financial aspect of running a business whether it is a micro enterprise with just five employees, a small or medium sized-enterprise with up to 250 employees or a larger corporate operation... | more

Exciting Opportunities within Pastel Payroll
April 2009

One of the most, if not the most, important factor in any employment and career path is remuneration. Getting paid correctly, on time, every time and receiving a performance based increase and bonus is something that most employees take for granted... | more

Software Piracy on the Wane as Vendors Apply Smarter Tactics
April 2009

Pirating software is not as easy as it used to be. Vendors have got smarter and most packages today feature mechanisms that lock down the software to a specific PC or server requiring a specific authorisation code to open the software for use... | more

SME Market Shows Interest in SaaS for Payrolls
April 2009

Interest levels among SME businesses in the Software as a Service (SaaS) model for payroll applications is rising but some management concerns are holding back a potentially high conversion rate... | more

Payroll and HR software latest news and information updates | Softline Pastel Payroll

2010-03-02T06:43:47Z

Employment Equity Returns Loom for Companies Employing 150 or more
September 2009

The deadline of 1 October looms for companies with 150 or more employees who intend lodging manual returns and reports on their employment equity status with the Department of Labour... | more

Pastel My Paycheck Online Pays Employees Anywhere, Any Time
August 2009

Pastel Payroll launched a new online software application which enables employees to be paid at anytime from anywhere in the world... | more

Government trims down Employment Equity Compliance Reporting Requirement
August 2009

Companies with more than 50 employees will no doubt be pleased that the Department of Labour has significantly reduced the length and detail of compulsory Employment Equity planning and status reports... | more

Payroll is Business-Critical so take care when selecting a software solution
July 2009

In today’s increasingly legislated environment where company payrolls have to operate within the regulations laid down by no fewer than six Acts of Parliament, including the Income Tax Act, the Basic Conditions of Employment Act and the Labour Relations Act, wise companies will take great care when selecting a payroll software solution... | more

Tax Season is Officially Here – How to Have a Pain-Free Tax Return Experience
July 2009

The 2009 tax filing season went live on 1 July and to avoid punishing fines or penalties, individuals need to know what is required of them and be aware of the deadlines they have to meet... | more

Payroll and HR software latest news and information updates | Softline Pastel Payroll

2010-03-02T06:43:28Z

Fasset Seta Accreditation for Payroll Training Academy Enables SDL Payment Recovery
November 2009

National Payroll and HR software specialist Softline Pastel Payroll, which provides training for up to 30 000 learners a year at its four academies in Durban, Cape Town, Johannesburg and Pretoria, is now formally accredited with the SETA for Finance, Accounting, Management Consulting and other financial services... | more

Automated Payroll Software Ensures Leave and Bonus Pay is a Breeze and Complies with BCEA ACT
November 2009

The end of the year is in sight and companies face the administrative burden of making the complex calculations related to determining the correct leave and bonus pay due to individual employees. The process is governed by the Basic Conditions of Employment Act (BCEA) which sets out the legal structure of all employment contracts and the rights of employees to ensure they are fairly treated in terms of annual leave, and severance or notice pay... | more

Formal Training a Most Important Component for Career Advancement
November 2009

Many of the business/management graduates majoring in Human Resources that emerge from South African Universities as well as school-leavers, enter the workplace without having undertaken any hands-on, formal training in business technology and HR and Payroll software... | more

Brace Yourself for Compulsory 2010 Electronic Tax Submissions
October 2009

Companies face a daunting task collecting, updating and collating information on their employees to ensure that their employee tax certificates are not rejected at the start of the 2009-2010 tax year employers’ filing season commencing in April next year... | more

Payroll Outsourcing Eases Burden for SME Companies
October 2009

Running a legally compliant payroll department has become an increasingly difficult and time-consuming task for SME companies as mushrooming legislative requirements have resulted in a confusing heap of legal requirements contained in six Acts governing tax, HR and payroll... | more

Payroll and HR software latest news and information updates | Softline Pastel Payroll

2010-03-02T06:43:10Z

Some Budget Relief for Individual Taxpayers while SME Businesses Have Work To Do
17 February 2010

In his maiden budget speech Minister of Finance Pravin Gordhan enhanced his popularity on Wednesday 17 February by announcing a practical Budget which provides tax relief for individuals totalling R6.5-billion and does away with SITE tax with effect from 1 March 2011... | more

Taking the Mystery out of HR Management
27 January 2010

It is time to change ingrained perceptions of Human Resource Management, such as the belief that (a) implementing HR software and (b) placing a strategic focus on HRM will result in a layer of red-tape and adversely affect a company’s operational success. ... | more

SARS gives SME companies and taxpayers a break on mandatory employee information
22 January 2010

Softline Pastel Payroll

2010-03-02T06:42:49Z

November 2008

Heading towards year end, payroll administrators will be preparing for the grind of making the highly complex calculations required to arrive at the correct annual leave and bonus pay for employees.

These complex calculations are governed by the Basic Conditions of Employment Act (BCEA). The BCEA dictates the legal structure of all employment contracts and the rights of employees, ensuring that employees are treated fairly regarding annual leave bonus and severance or notice pay.

Companies without automated payroll software will find that handling these calculations manually or on spreadsheets is onerous and time consuming and the calculations have to be correct or the company is in breach of the Act.

A particularly complex portion of the BCEA aims to ensure that leave pay is fully representative of individual employees’ actual earnings.

“Leave pay calculations have to take into account variable income types such as commissions earned, overtime, allowances and performance bonuses,” says Grant Lloyd, managing director of payroll software specialist Softline Pastel Payroll. “They must be based on the average earnings of the employee over a 13-week period preceding the date on which leave commences.”

Because overtime, commissions, allowances and other payments result in fluctuating income, the calculations required to comply with the BCEA are difficult and time consuming without an automated payroll.

Legislation dictates that the calculation should be based on the variable earnings of employees over the 13-week period preceding the date on which they take leave. Employees in different departments, however, could either benefit or be prejudiced by the 13-week averaging, depending upon when they elect to go on holiday.

For example, most printing houses close for the 15th of December until the second week of January. As a result, many companies submit artwork during November for print jobs due in January to ensure they take delivery in December. Print volumes increase drastically during this period and overtime is worked to meet the deadlines before printing house employees go on leave in December.

Lloyd says that in their case, averaging earnings over the preceding 13 weeks would be beneficial to employees because of the volume of overtime worked during November and December that would fall into the 13 week period for calculating the “variable earnings”.

Accounting staff are also more likely to take leave after company financial year-end audits, so their major overtime would also be clocked in the build-up to year-end and be included in the calculation. “The BCEA allows companies some discretion to calculate average earnings over a longer period, which in many instances is more likely to arrive at a leave pay settlement that is a more representative reflection of an employee’s average earnings, as well as being fair and just to both employee and employer,” says Lloyd.

The benefits of using an automated payroll solution extend beyond time-saving, efficiency, speed and accuracy. Lloyd says payroll administrators are able to define the BCEA calculation parameter for the needs of the company, department or right down to individual employees.

“In consultation with management, payroll administrators can establish parameters that the software will automatically follow so that calculations of average earnings are always consistent with the requirements of the BCEA and reasonable to all concerned.”

Lloyd adds that users of the software also benefit from the fact that automated payroll and HR solutions providers monitor amendments to the BCEA and provide updated versions whenever new legal requirements are promulgated. They therefore always operate in full compliance with the Act, ensuring that the BCEA leave and bonus payments are not subject to basic finger trouble, interpretation or even fraud.

“The software also caters for the automatic calculation and implementation of pay increases or bonuses. If a company elects to give employees across the board or specific departments a 12 percent increase, the 12 percent is automatically calculated against the selected employee’s current salary or wage and the new wage or salary amount is applied on the selected date and reflected on the individual’s payslip. The same applies to other transactions such as leave allocations and leave pay, travel allowances and bonuses.”

Softline Pastel Payroll

2010-03-02T06:42:31Z

September 2008

Employment equity planning and reporting is a task that HR departments in companies with 50 or more employees have to regularly contend with. Designed to create new opportunities for previously disadvantaged people to participate in the economy, the Employment Equity Act encourages and monitors progress made by companies.

According to the Employment Equity Act, No 55 of 1998, all designated employers (companies) are required to report to the Department of Labour on progress made in terms of their Employment Equity plans on the following regular basis:

Employers that employ more than 150 employees are required to report every year, by the first working day of October;
Employers that employ less than 150 employees but more than 50, are required to report every second year, by the first working day of October.

The Employment Equity Act stipulates not only that qualifying companies submit such returns on their employment equity status but also report on occupational categories and levels as well as workforce planning and forecasts.

Automated payroll software developer Softline Pastel Payroll developed functionality within its software to assist companies to monitor and formally report on employment equity status, growth and progress, by populating the EEA1, EEA2 and EEA4 reports from the automated payroll and HR software solution, as required by the Department of Labour.

“Our software caters for all of the individual detail the Act requires on all employees,” says Pastel Payroll technology director Philip Meyer. “Users are able to easily assemble the data required for the formal employment equity returns and reports and this information is presented in such a way that companies can also quickly draw up employment equity growth planning and forecasts, simply by using the numeric goal plan tool offered by automated payroll and HR software solutions.”

With no fewer than six Acts of Parliament now impacting on payroll and HR, payroll software has become an important management tool. “The data that resides in payroll software can easily be extracted and then presented clearly and logically in a report that satisfies all of the legislative requirements,” adds Meyer.

He says companies could meet these requirements manually, but using spreadsheets to create such reports would require a high level of legislative knowledge. “It really does not make sense in this day and age when software, in the form of an automated payroll and HR solution, is quicker, easier and highly accurate, saving time and costs and freeing up employees for other tasks, to complete the required Employment Equity returns and reports manually.”

Softline Pastel Payroll

2010-03-02T06:42:06Z

July 2008

SARS has made available a free software package named e@syFile, which can be downloaded from the SARS website or collected on CD from any SARS or Softline Pastel Payroll branch, to assist companies meet their tax return commitments.

Employers have until 29 August 2008 to complete their EMP501 returns that reconcile payments made on behalf of employees for PAYE (pay as you earn), UIF (unemployment insurance fund) and SDL (skills development) levies.

1. Question: Why did SARS introduce a new PAYE Reconciliation Process?

Answer: The recent reform of the PAYE tax dispensation by South African Revenue Services as the important first leg of an overall conversion to a totally electronic taxation system along the lines of the one that has proved so successful in Australia.

Overall, the new dispensation is a good piece of work that lays down specific requirements for both employers and employees. The way that it is structured has major impacts, mostly positive as the primary objective is to ensure that tax submissions become much easier for honest taxpayers and much more difficult for dishonest taxpayers and tax evaders.

The overall reconciliation process will be more streamlined, enabling returns to be submitted more quickly and more accurately which in turn will facilitate quicker processing by SARS and quicker settlement of amounts owing to taxpayers who have paid more than was required. For companies with automated payroll software, the new reconciliation process will be a breeze.

2. Question: What are the penalties involved for late or inaccurate submissions?

Answer: SARS has warned that heavy penalties (10% of the PAYE declared) will be imposed on companies that fail to make the 29 August 2008 submissions deadline and has also urged companies not to wait until the last day to make returns by e-Filing. In addition, backdated interest will be calculated on outstanding PAYE, UIF and SDL amounts at 10,5% for incorrect or late payments.

In fact, companies should send their returns as early as possible to avoid the possibility of submissions being late due to technical problems. SARS has stated it will not waive any penalties due to technical problems as they have already allowed an ample period of preparation up to 30 June 2008, followed by another 60 days for submissions.

A point to bear in mind is that if companies do not meet the SARS deadline for the EMP501 return, their employees will not be able to obtain their personal tax return form from SARS because the data required from the company to automatically populate some sections of the individual return will not have been received.

Individual employees will be required to submit their returns between 1 September 2008 and 21 November 2008, if they choose to submit their tax forms manually. SARS will provide individual employees with a hard copy tax form, populated with the details that have already been submitted by the individual’s employer. Individuals submitting electronically via eFiling are granted an extra two months and may submit up to 23 January 2009. This clearly encourages individuals to use eFiling in line with the SARS intention to move towards an electronic submissions process.

Having information earlier from employers through e@syFile will allow SARS to release individuals’ Personal Income Tax forms, already populated with accurate information received from employers, in a timeous manner. This will simplify the return and speed up the overall process, ensuring individuals receive quick assessments and refunds, if due.

3. Question: Where can companies obtain the SARS e@syFile application?

Answer: Presently e@syFile application is available only in a single company version but will also soon be available in a multi-company version for professional tax practitioners. The software is free and companies with web connectivity can download it from the SARS website. Companies without web connectivity can collect a CD from their nearest SARS or Pastel Payroll office, also at no charge.

4. Question: May companies submit EMP501 forms manually or is eFiling compulsory?

Answer: Employers may submit EMP501 forms manually but SARS recommends that companies use the e@syFile application for EMP501 preparation. The EMP501 can be submitted to SARS via the Internet using eFiling. The preferred SARS method of submitting EMP501 returns is via eFiling, however if the employer has no web connectivity, the EMP501 can also be saved to CD and taken to a SARS office for reconciliation.

If employers prefer to perform tax submissions manually, they are required to wait at SARS, while a SARS consultant reconciles the submission. If the EMP501 return does not reconcile, employers will have to return to their offices, redo the EMP501 reconciliation, ensure there are no errors and then return to SARS in order to obtain reconciliation approval.

5. Question: How secure is the company information submitted via e@syFile?

Answer: e@syFile data submitted to SARS through eFiling for validation is automatically encrypted by the software so that the data may only be accessed and read by SARS.

6. Question: What does the new EMP501 Reconciliation process entail?

Answer: The following 10 steps must be followed by companies with automated payroll software, to ensure that complete and accurate EMP501 returns are submitted before 29 August 2008 --

Step 1: Prepare the year-end information for the tax year ending 29 February 2008.
Step 2: Generate the electronic IRP5/IT3(a) certificates from the payroll software.
Step 3: From 1 July 2008, download or collect on CD and install the e@syFile application.
Step 4: Setup all users and passwords on the e@syFile application.
Step 5: Import the electronic IRP5/IT3(a) certificates into the e@syFile application. If the import fails, correct the errors on the automated payroll software and recreate the electronic IRP5/IT3(a) certificates. Repeat the importing procedure into the e@syFile application.
Step 6: If the import succeeds, print the EMP501 Reconciliation data from the automated payroll software and capture the monthly PAYE, SDL and UIF payments as indicated on the electronically generated report onto the e@syFile application. Please note that by utilising an automated payroll software solution, the complex calculations are already taken care of.
Step 7: Generate the electronic PAYE submission from the e@syFile application.
Step 8: Registered eFilers are allowed to upload their electronic tax certificates and EMP501 returns to the eFiling website for final submissions.
Step 9: Employers without web connectivity can save the electronic tax certificates and EMP501 return to CD. In addition, employers are required to print and sign the EMP501 reconciliation return and deliver the CD, along with the signed EMP501 return and tax certificate copies to their nearest SARS office.
Step 10: Employers are required to print the IRP5 /IT3(a) certificates and distribute the certificates to their employees.

Ensure that these 10 steps are completed before 29 August 2008 to avoid hefty penalties.

7. Question: What is SARS eFiling?

Answer: SARS eFiling is a web-based software program that companies and individual taxpayers can register for by visiting the SARS website, providing that they have web connectivity.

8. Question: What are the benefits of using an automated payroll software solution?

Answer: Companies with automated payroll and HR software solutions will find life becoming much easier. To comply with the new requirements of e@syFile, all they need to do is to access their year end IRP5/IT3(a) data file and import the file directly into e@syFile. This data file will automatically populate your company and tax certificate details, eliminating time consuming manual capturing.

With Pastel Payroll, you can automatically generate a report that reflects all the calculated amounts required to successfully complete the new EMP501 return on e@syFile. Don’t waste time on complex calculations, when there is software that can do it all for you.

Companies still using manual payroll systems will find it increasingly difficult and time consuming to manually calculate and capture all the required figures and details into e@syFile.

Softline Pastel Payroll

2010-03-02T06:41:44Z

July 2008

Payroll software can no longer be considered a back office operation focusing solely on the pay slip and defining employee earnings and deductions. Driven by the increasing automation of business processes, it has evolved into a critical, core aspect of any business.

Grant Lloyd, managing director of payroll software specialist Softline Pastel Payroll, says there are six major payroll Acts that govern payroll processing. This proliferation of legislation and more expansive SA Revenue Services requirements have resulted in payroll taking on data capture and complex reporting functions that were previously the domain of HR, including compliance with the Basic Conditions of Employment Act (BCEA) regarding leave, minimum working hours and other parameters.

In addition, there is immense pressure placed on Payroll and HR administrators to comply with the new SARS Employer Filing Season pertaining to the EMP501 reporting requirements.

Traditional Human Resource (HR) management elements such as employee contracts, performance reviews, technology and equipment made available to employees are now born out of core payroll software solutions.

“Payroll software evolution in recent years has undergone a paradigm shift, offering full automation of legislative requirements including tax deductions, UIF payments, pension and provident fund deductions, SDL contributions and rebates and skills development. Almost 80% of the information required for the legislative HR reporting lies in payroll software,” says Lloyd.

Opportunities are also emerging for payroll software vendors to offer the market HR functionality in areas where logical extensions from payroll exist. Where companies are using payroll software every day it makes sense to look at HR software extension into payroll systems, rather than take on something totally new and crowbar it into the existing HR system.

“Employee salaries and wages constitute roughly 60% of total business expenses, yet many businesses fall into the trap of focusing most of their efforts on managing the remaining 40% pertaining to operational matters.

Lloyd adds that payroll and accounting software solutions have traditionally been the “recorders” of historic information based on the pay slip and the invoice.

“Today these software solutions are morphing into integrated applications that can assist businesses to make informed business decisions, by utilising business intelligence capabilities. Lloyd believes the key to a more productive and profitable business is to ensure that the data is extracted and detailed information is prepared, carefully analysed and interpreted within the context of the particular business requirement and strategy.”

For example, Accounting software solutions provides employers with the value of sales generated by an applicable sales representative, whereas the payroll software solution specifies the earnings. Therefore an employer can determine, by extracting and collating two disparate sets of data from different line of business applications, the profitability of a specific sales representative, which will be beneficial when decisions are made on bonuses, salary increases or even setting sales targets. This could also apply to other aspects of the business.

Lloyd says payroll is a work-in-progress system and can be used to pre-empt changes in the business.

Softline Pastel Payroll

2010-03-02T06:40:59Z

June 2008

A payroll software solution developed specifically for the needs of micro enterprises with up to five employees has been brought to market by local payroll software developer Softline Pastel Payroll.

The package, known as Pastel MicrOpay, is a simplified version of the highly successful software developed by the company for SME businesses.

“The Pastel MicrOpay solution does not offer the smart features that larger companies need and like to use, but it does take care of all the legal requirements such as tax, OID, UIF, SDL, medical aid and EMP201 Returns, that micro enterprises have to deal with.” says Pastel Payroll technical director Philip Meyer.

With the increasing complexity and spread of legislation covering business and employment, it is becoming more and more difficult for very small companies to provide the required returns accurately and on time. Meyer says complications such as changes or variances in UIF thresholds mean that it becomes more and more difficult to use spreadsheets and meet the legal requirements.

“Companies of all sizes face penalties for non-compliance with legislation. Even companies with up to five employees a CCMA hearing and legal processes can be a serious financial setback. With Pastel MicrOpay these risks can e minimilised. It is an uncomplicated software solution ideally suited to even meet the payroll needs of the very small business, providing professionally structured payslips and ensuring legal compliance with the many employee and company taxes, levies and returns.”

Without the ‘bells and whistles’ that are contained in the SME version of Pastel Payroll, the Pastel MicrOpay software offers very small businesses an effective payroll solution at an affordable cost.

“Not only does Pastel MicrOpay ensure peace of mind with legal and accurate statutory returns, users also receive immediate software updates if legal requirements change,” adds Meyer.

The software has many “assistants” (wizards) that guide users through tasks of a non-repetitive nature, making these tasks simple and intuitive. These include: Setup Assistant, General Ledger Integration Assistant, Payroll Run Assistant and Year End Update Assistant. The software also ships with pre-defined sets of transactions to ensure businesses are up and running in no time.

Users can quickly set up new employees by linking them to a pre-defined employee profile that automatically populates the standard transaction information and can make use of a comprehensive context-sensitive help facility (F1 button).

Even though smaller companies do not require complex transactions, the security of payroll information is most important and access is password-protected. The software also integrates with Pastel Accounting.

Pastel MicrOpay is now also available from more than 1000 nationwide resellers and selected retail outlets.

Softline Pastel Payroll

2010-03-02T06:40:43Z

June 2008

Technology advances in systems, changes in legislation as well as innovation, has contributed significantly towards the creation of a very different playing field for the payroll administrator.

According to the South African Payroll Association (SAPA), the advancement in technology and innovation within the payroll arena has forced companies to review their payroll competency in general, suggesting that treating the payroll department as an isolated island within the business will simply not suffice.

“There is just too much at stake,” says Alan Burger, CEO of InfoSlips, “in fact, payroll touches the whole organisation. This is evident in the level to which IT, HR, payroll and even marketing are becoming more aligned.”

If one reflects on the criteria for a more powerful and more efficient payroll administration within a company, it is clear that the basic premise is to encourage the adoption and strategic use of technology in order to lay a foundation that meets the needs of both the business and the employee in real time.

Grant Lloyd, managing director of payroll software developer Softline Pastel Payroll, says that it is a fact that the functions of payroll administration and human resources departments (HR) are merging as the original barriers between the two continue to fall away and payroll software undergoes radical development to cater for ever-changing legislative demands.

“The proliferation of legislation and more expansive SA Revenue Services requirements have resulted in payroll administration taking on data capture and complex reporting functions that were previously the domain of HR, such as complying with the Basic Conditions of Employment Act (BCEA) regarding leave requirements, minimum working hours and so forth.

“Features and functionality that simplify and automate the process of legislative compliance have already been incorporated into most payroll packages. Bearing in mind that there are 77 different tax codes, automation in payroll has alleviated much of the burden that used to be the responsibility of HR. Almost 80% of the information required for the legislative HR reporting now lies in payroll software,” says Lloyd.

Lloyd says another logical step is to use payroll software for performance management and reviews. “Every staff member’s details are already stored within the payroll database and it makes sense from a security and management access viewpoint to create the functionality in payroll and store all of the relevant documentation and personal data in one place. Inventory management would also make sense in payroll, giving management quick access to the details and serial numbers for laptops, notebooks, 3G cards, cellular phones and other valuable company equipment allocated to employees.”

Considering one of the latest trends in payroll outsourcing, the future of payroll administration may already be here. Some providers already offer Software-as-a-Service (SaaS) via Web-based payroll, where an employer enters employee information on a secure Web site.

This frees the employer from the need to acquire and install and regularly update specialist software. Information is entered online and can be captured via the Internet from any geographical location.

New ICT solutions can also benefit the employee relations by allowing employees much more freedom and control in terms of viewing their payroll history, printing and re-printing payslips and even updating personal information like address and number of dependents, from anywhere in the world. Technology such as that provided by InfoSlips leverages traditional e-mail to bring payroll information directly to an employee’s desktop. Other channels also contribute to the connected employee, including the Internet or, even more recently, cellular technology using simple SMS message flow.

Payroll software has evolved significantly in recent years. Lloyd says that an employee self-service (ESS) module developed by payroll software specialist Softline Pastel Payroll, is designed to provide companies, management, payroll administrators, the HR department and staff with significant benefits and advantages. The objective of ESS software is to offer a user-friendly means of streamlining payroll and HR administration while at the same time improving staff communications with department heads, administrators and management.

“The Pastel Payroll ESS module optimises web technology to break down the barriers of distance,” says Lloyd. “It is an ideal communication solution for companies operating with remote branches or those that have sales representatives out on the road. It also offers sound control features that allow management to define staff access according to status and needs. ESS is another step towards the paperless office, enabling staff to make on-line applications for leave, salary advances, loans, sponsorships, bursaries or other financial assistance.”

In addition to the impact of technology on payroll, there are a number of trends that are likely to influence the direction and development of this mission-critical aspect of business.

“One of these is the greater focus on work-life balance across the world in the next few years,” explains Burger. “At the heart of this focus lies a strong desire by people to want to change the way they work and instill a far keener sense of balance between their business and personal lives. Today, we work according to different dynamics, different value systems and different priorities in comparison with previous generations.”

In order to successfully address these challenges, organisations will need to rely on technology to effectively communicate with and control employees. This will, in all likelihood, have a profound impact on payroll administration and HR, both of which will have to adapt – and quickly – to the changing demands of these new conditions.

Softline Pastel Payroll

2010-03-02T06:40:21Z

June 2008

Pastel Payroll provides an easy-to-use, accurate and secure payroll solution with all the features payroll administrators and staff need. It is the ideal solution for any size and type of business and ensures that the business is kept up-to-date and fully compliant with all legislative requirements.

The software is available as a stand-alone, single-user product for the smaller company, or is scalable up to 10 users for a larger company. It accommodates an unlimited number of employees and offers the full spectrum of company payroll requirements, from pre-defined, standard sets of transactions to more powerful and customisable features and functions for sophisticated payrolls.

The technologically advanced true 32-Bit Windows application allows users to print in a Microsoft® Word or Excel format and password protected payslips can be emailed to individuals or groups of employees in a secure PDF format. Employees can be provided with payslips reflecting their personal preference for any one of South Africa’s 11 official languages.

An online Help Facility provides detailed explanations of each function or field. Pastel Payroll combines all processing periods in one company to reduce the time spent on the initial setup and processing. Payslips, cheques and labels can be customised with a user-friendly ‘drag-and-drop’ Forms Designer feature to insert, for example, the company logo and catchline.

Specialised modules cater for industry-specific requirements, namely BI Payroll: Excel Reporting, Industrial Council Compliance, Global Updates (Multiple Transactions Manager), Employee Self-Service and Third Party Payments.

Pastel Payroll believes in working smarter, not harder. Meeting South African Revenue Services obligations every month takes considerable time and know-how. Pastel Payroll’s easy, efficient processing ability enables compliance at the touch of a button. Pastel Payroll will take your business BEYOND PAYROLL.

Softline Pastel Payroll

2010-03-02T06:40:02Z

June 2008

Management and staff at a Woodmead company have pulled together to assist the thousands of people left homeless by the recent spate of xenophobic violence that has also left more than 60 people losing their lives in Gauteng, Mpumalanga, Western Cape and Kwa-Zulu Natal.

Blankets, clothing and non-perishable foods donated by staff at payroll software specialist Softline Pastel Payroll, have been collected from the company’s Woodmead office by Red Cross representatives for distribution to needy victims of the violence.

Donita Preston, HR manager at Pastel Payroll, said the many people left homeless were in dire need of help. “We believe we can make a difference by assisting the Red Cross in its goal of preventing and alleviating human suffering. We encourage other companies and their staff to rally behind the Red Cross and help the organisation in its good work.”

Softline Pastel Payroll

2010-03-02T06:39:36Z

June 2008

The recent reform of the PAYE tax dispensation by South African Revenue Services has been hailed as a “profoundly good piece of work”.

Laying down specific requirements for both employers and employees, the way the new dispensation is structured has major impacts. “The primary objective is to ensure that life becomes much easier for honest taxpayers and much more difficult for dishonest taxpayers and tax evaders,” says Grant Lloyd, managing director of payroll software developer Softline Pastel Payroll.

“SARS has really put a lot of thought into the new dispensation and the streamlining of the process. It is a profoundly good piece of work and I see it as the important first leg of an overall conversion to a totally electronic taxation system along the lines of the one that has proved so successful in Australia.”

The overall process will be more streamlined, enabling returns to be submitted more quickly and more accurately which in turn will facilitate quicker processing by SARS and quicker settlement of amounts owing to taxpayers who have paid more than they need to. Companies with automatic payroll software will also find the new dispensation very easy to accommodate.

“By raising the personal tax earnings threshold for no return required to R120 000 a year, SARS is also reducing the total of returns to be processed by some 800 000 individuals,” adds Lloyd. “While these people still have to register with SARS and pay PAYE every month, they are not required to submit a formal annual tax return, thereby decreasing overall tax assessment traffic and helping to speed up the process for those who do have to submit.”

With the individual tax return submission “filing season” this year reduced to just seven weeks (1 September to 21 November) for manual submissions, SARS is encouraging people to convert to electronic returns by allowing eFiling system users another six weeks until 23 January 2009 to make their submission.

A dynamic single tax return for individuals which will be customised and pre-populated with verified IRP5 and IT3A information received from employers will result in accurate returns that are much easier to complete.

Lloyd says that tax returns will be provided by SARS on request, encouraging people to use eFiling. The forms are a standard two pages and by answering the questions and entering only relevant information, each becomes tailored to the individual’s circumstances. If an individual’s only source of income is his job, the form is extremely simple and straightforward. However, if the person has other sources of income such as investments or receives rental income from properties owned, then the form is customised accordingly.

A “nice touch” from SARS, according to Lloyd, is that it now also offers a facility to fill in the tax return form off-line which ensures that no data is lost if a power failure or other internet connection failure occurs.

“Taxpayers probably have two to three years to phase out of submitting paper returns manually. A service that will encourage people to make this migration is the SARS free software that allows tax certificates to be captured electronically or printed out and submitted manually. This clearly demonstrates that electronic is more effective and time-efficient.”

While offering taxpayers a choice of language for submission could pose some challenges in the processing of returns, Lloyd says SARS has obviously done its homework well and the new system will also offer benefits to accountants and tax practitioners.

“The pre-populated returns will reduce the manual workload for tax practitioners and result in fewer transcription errors. The new tax calculator that can be used to calculate the assessed liability upfront will also save time and effort,” says Lloyd. “Overall, the new dispensation should also create new business opportunities in servicing employers that do not have the skills set to electronically complete the new EMP501 or electronically capture tax certificates.”

Softline Pastel Payroll

2010-03-02T06:39:19Z

May 2008

SME companies using automated payroll software solutions will find it easy to conform to new regulations announced by Finance Minister Trevor Manuel and SA Revenue Services.

SARS announced that from 1 July 2008 to 29 August 2008 companies will be required to submit PAYE information (EMP501 returns and employee tax certificates) using the new procedures for the Employers Filing Season 2008. This can be done electronically using the online e-filing system or free software that will be made available by SARS. SARS says it will ensure greater accuracy and allow all IRP5, IT3 (a) and EMP501 returns to be submitted electronically or on a CD delivered to a SARS office.

Individuals will be required to submit their returns manually between 1 September 2008 and 21 November 2008 or via e-filing from 1 September 2008 to 23 January 2009. Having information earlier will allow SARS to release to individuals’ Personal Income Tax forms already populated with accurate information received from employers which will simplify the return and speed up the process, ensuring individuals will receive quick assessments and refunds.

“Companies using automated payroll software systems in any event create these files automatically so they then simply need to upload electronically,” says Grant Lloyd, managing director of payroll software developer Softline Pastel Payroll. “Companies using manual systems or spreadsheets will still have to manually calculate all of the parameters and enter them into the SARS software.”

Lloyd sees the new regulations as a positive step in the SARS move to convert companies to an electronic tax system which has the advantages of being quicker, more accurate, more efficient and will make life easier for compliant taxpayers while allowing SARS to concentrate on non-compliant taxpayers.

“By offering free software for electronic tax certificates and on-line EMP501 forms, SARS is also encouraging companies to go the electronic route with PAYE administration, the benefit being that they will be able to create employees on the electronic system, capture their IRP5 information, generate the EMP501 return and finally print IRP5 certificates.”

Soon-to-be promulgated legislation will allow heavy penalties to be imposed on late returns and Lloyd says this is another means of encouraging companies still handling these processes manually to convert to electronic options.

“Companies on manual systems would be wise to consider implementing automatic payroll software as it is a key element in making the conversion to electronic procedures because the software automatically produces all the information required to populate the on-line forms and returns.”

Note to editors: Softline Pastel Payroll, a member of the Softline group, is the leading developer of payroll applications software and services in South Africa. Skills, experience and innovation in this field accumulated over more than 19 years in business, confirm Pastel Payroll’s leading position in payroll and HR software solutions for the SME market. Pastel is listed as one of the top 10 IT brands in South Africa (Sunday Times, 17 September 2006). Pastel Payroll provides easy-to-use, accurate, secure and feature-rich payroll/HR solutions, ensuring businesses keep up-to-date and fully compliant with changing legislative requirements, taking them beyond payroll.

Softline Pastel Payroll

2010-03-02T06:39:04Z

May 2008

Payroll software developer Softline Pastel Payroll has launched a drive to create exponential growth in export markets with a focus on selected countries in Africa, including Ghana, Nigeria, Kenya, Zambia, Botswana and Namibia.

Pastel Payroll software is already sold and supported in 22 countries worldwide and international channel manager Laurica Pieterse says the different tax and legislative requirements of various countries have provided a strong window of opportunity for the company to further grow its business base in Africa.

“We’re well advanced in the development of unique functionality to cater for the different tax and legal requirements of these countries, a feature that will, like our software in South Africa, ensure that companies apply correct tax rates and submit returns that are completely accurate and fully compliant with the legislation applicable in each country."

“We are also creating country-specific versions of our value-adding business intelligence module that integrates with our payroll software to bolster a company’s competitive edge. This module is a reporting tool that allows companies to generate detailed reports in order to make improved business decisions.”

The BIC Payroll: Excel Reporting module software functions with Microsoft® Excel to provide more than 20 different standard report formats and templates as well as a facility that allows users to create their own reports. Typical users are payroll administrators, HR managers, financial managers and business owners as well as supervisors and team leaders.

Softline Pastel Payroll has 26 business partners working internationally and is on the lookout for more, according to Pieterse.

“Our strategy is to grow on a country-specific basis. Hence we’re fully committed to training our business partners in each country as well as providing software that meets the country specific tax and legislative needs.”

Softline Pastel Payroll has very strong business partners and user bases in Lesotho and Swaziland as well as Botswana and Namibia where more than 200 companies in each country are using Pastel Payroll. Aggressive sales are being achieved in Nigeria where there are three business partners and a partner with a very large client base in Ghana, is also servicing Uganda and two new partners are coming on board in Kenya.

Most of the countries’ tax year-ends fall at different times of the year. Pieterse is contemplating year-end seminars in each country with the co-operation of business partners and their customers.

Softline Pastel Payroll

2010-03-02T06:38:49Z

April 2008

The Department of Labour’s Compensation Fund has warned companies that unless they now meet the extended deadline of 30 April to submit the Compensation for the Occupational Injuries and Diseases (COID) return, they face paying penalties. The returns are usually due by 31 March.

Grant Lloyd, MDof payroll software developer Softline Pastel Payroll, says the extension demonstrates the difficulties some companies have in compiling these returns manually. Companies are required to contribute a percentage determined by the Commissioner of every employee’s earnings towards COID.

In addition, automated payroll solutions provide the employer with the applicable annual remuneration values required by the Department of Labour to be inserted on to the applicable COID return of earnings. This ensures that the contributions are calculated in line with the COID Act requirements.

“For SMEs conducting this return manually is a time-consuming, non-profitable task. Modern payroll software, however, will automatically calculate the applicable earnings up until the annual maximum amount,” says Lloyd.

The Department of Labour issued a statement to explain the one-month extension of the COID return deadline, stating that the decision to give companies another month to process their returns reflected the Fund’s approach of partnering with clients to ensure strict adherence to the law.

Spokesperson Zolisa Sigabi said the Department of Labour was not out to simply impose hefty penalties against non-complying employers without giving them ample opportunity to abide by the law. The Department of Labour also felt it was only fair to extend the deadline as some employers had encountered technical problems in trying to gain access to the Department’s website for the applicable return of earnings form.

“It is in this spirit that we urge employers who have not submitted to do so immediately to avoid penalties,” Sigabi saiys. He adds that employers, as key stakeholders in the administration of the COID Act, would realise their important role in strengthening support for vulnerable workers.

Softline Pastel Payroll

2010-03-02T06:38:34Z

April 2008

A mid-March notice from SA Revenue Services (SARS) to employers requesting that IRP501 returns and IRP5 tax certificates for employees should not be sent until the end of April, seems to be an instruction to employers not to submit these returns at all until further notice.

“This has caused some confusion among employers,” says Grant Lloyd, MD of payroll software developer Softline Pastel Payroll. “Another announcement from SARS is expected at the end of April which will detail changes to submissions that SARS is currently finalising. This is why the IRP501 and IRP5 tax certificate submissions should be placed on hold.”

Lloyd adds that shortly after the expected SARS announcement, employers will have to accommodate the changes currently being finalised by SARS.

Employers who are using manual systems or spreadsheets to handle their payroll processing will have to ascertain for themselves the legal implications and requirements of the changes and manually update their spreadsheets accordingly.

“However, those with modern automated payroll software such as Pastel Payroll will immediately become legally compliant simply by downloading a software update that will automatically implement the changes required by SARS.”

An automated payroll solution will ensure that no human error creeps in and that payroll legislation is complied with, giving companies more time to focus on their core business.

Softline Pastel Payroll

2010-03-02T06:38:21Z

April 2008

It is a fact that the functions of payroll administration and human resources departments (HR) are merging as the original barriers between the two continue to fall away and payroll software undergoes radical development to cater for ever-changing legislative demands.

According to Grant Lloyd, managing director of payroll software developer Softline Pastel Payroll, there are 5 major payroll acts that govern payroll processing, which places immense pressure on payroll administration and human resources departments. Legislation nowadays requires reporting on skills development, the unemployment insurance fund (UIF), employment equity, occupational injuries and diseases (OID), to name but a few.

“Some 60% of the costs in any business are employment-related and it is incumbent upon payroll administrators and the HR department to ensure that employees are not over taxed and receive the benefits to which they are due. Late or incorrect payments to employees can have disastrous affects on business and productivity levels,” says Lloyd.

In addition to the payroll processes, there are various HR tasks that should be considered, such as recruitment processes and policies to ensure that suitable employees are obtained to meet the needs of the company. This also includes established performance reviews, disciplinary processes, ongoing training and skills development, all of which are important in driving a successful business. Then there are leave entitlements, sick and compassionate leave policies … the list is almost endless.

Lloyd maintains the payroll aspect of HR is critical in terms of meeting the legislative requirements including tax deductions, UIF payments, pension and provident fund deductions, SDL contributions and rebates and skills development. The proliferation of legislation and more expansive SA Revenue Services requirements have resulted in payroll administration taking on data capture and complex reporting functions that were previously the domain of HR, such as complying to the Basic Conditions of Employment Act (BCEA) regarding leave requirements, minimum working hours and so forth.

“Features and functionality that simplify the process of legislative compliance have already been incorporated into payroll packages and this has alleviated much of the burden that used to be the responsibility of HR. Almost 80% of the information required for the legislative HR reporting lies in payroll software,” says Lloyd.

He believes there are great opportunities for HR software in payroll systems and a logical starting point is performance management and reviews. “Every staff member’s details are already stored within the payroll database and it makes sense from a security and management access viewpoint to create the functionality in payroll and store all of the relevant documentation and personal data in one place. Inventory management would also make sense in payroll, giving management quick access to the details and serial numbers for laptops, notebooks, 3G cards, cellular phones and other valuable company equipment allocated to employees.”

Payroll software has evolved significantly in recent years. Lloyd says the two employees sitting in a tiny payroll office sharing an old computer is a structure of the past; today’s payroll software can be accessible to hundreds of employees who can submit online leave applications, training requests, applications for transfer to other branches or departments, log travel and subsistence expenses, apply for a loan or car allowance or just simply access their payslip history to check how much PAYE they have paid to date or to see how much of their annual leave is left.

“Payroll software is a mission-critical application because without it companies may not be able to pay their staff on time. Payroll software is logically placed to drive productivity improvements in the work force and its involvement in delivering HR functionality is already happening.

Opportunities are emerging for payroll software vendors to offer the market HR functionality in areas where logical extensions from payroll exist. Where companies are using payroll software every day, Lloyd says it makes sense to look at HR software extension into payroll systems, rather than take on something totally new and crowbar it into the existing HR system.

Already there are payroll modules designed to make life easier for management, payroll administrators and HR departments. Web technology is used to break down the barrier of distance for companies that have branch operations, subsidiaries, or sales people out on the road, improving staff communications with department heads, administrators and management.

“Running payroll operations online makes it possible for employees to access payslips via the Internet from wherever they may be, provided they have a web connection. Any previous month’s payslip can be viewed or printed via a secure online ‘zone’, eliminating many of the unnecessary and administratively intensive duties payroll and HR managers usually have to cope with.

“So it appears that payroll software developments are providing a platform from which future HR automation may evolve,” concludes Lloyd.

Softline Pastel Payroll

2010-03-02T06:37:59Z

March 2008

The changes in personal income tax rates, including primary rebates, tax-free thresholds and income brackets, add up to a lot of work for SME companies that still use manual systems or operate spreadsheets for their payrolls.

Dedicated automated payroll and tax software implements the tax and medical aid-related revisions announced by Finance Minister Trevor Manuel in the 2008/9 budget and ensures that payrolls are totally accurate and tax compliant from 1 March 2008 when the new budget takes effect.

Grant Lloyd, managing director of payroll software specialist Softline Pastel Payroll, says the updating of manual systems can be a daunting task for smaller companies with just nine working days left before the new financial year when the new tax rates, rebates and thresholds announced by the Minister kick in.

“With automated payroll software functioning on modern operating systems it is quick and simple to make the changes to the software as required by the new budget. Our users will be able to simply download the revisions from our website to ensure that their payrolls will be fully compliant with the tax, medical aid and legal requirements for the new tax year.”

“So users don`t have to worry about the complex array of new tax and legal requirements and will have the peace of mind that comes from full compliance and absolutely accurate processing of the individually complicated employee portions of the payroll from day one.”

There are changes in all six taxable income brackets, with minimum and upper income levels increased across the board although tax rate percentages are unchanged. This will especially benefit the lower and middle income tax payers.

Primary and secondary rebates increased to R8 280 and R5 040 respectively and the primary and age 65 and over tax-free thresholds to R46 000 and R74 000 respectively.

Medical aid cappings increased to R570 per person for the first two dependants and to R345 per person for each additional dependant. If the employee is solely responsible for the medical aid contribution the employee will be taxed on a lesser amount and therefore receive a tax benefit. If both the employee and employer contribute towards the medical aid and the employer`s contribution is higher than the allocated capped amount, then the employee will only be taxed on the excess contribution as a fringe benefit.

“All of these changes must be effective in payrolls from March 1 or tax errors will result in having to pay penalties and interest,” said Lloyd. “Companies will save money by using an automated payroll system through time savings and by ensuring that only the correct amounts of tax are paid. Errors not in SARS` favour can have a serious and expensive knock-on effect.”