{"id":556300,"date":"2022-02-08T12:49:08","date_gmt":"2022-02-08T10:49:08","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=556300"},"modified":"2022-02-08T12:49:08","modified_gmt":"2022-02-08T10:49:08","slug":"tax-year-end-is-around-the-corner-get-ready-with-these-4-tips","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/industry-news\/556300\/tax-year-end-is-around-the-corner-get-ready-with-these-4-tips\/","title":{"rendered":"Tax year-end is around the corner. Get ready with these 4 tips"},"content":{"rendered":"<p>A new year is typically a stressful start for many small to medium-sized enterprises (SMEs) that are already feeling the hot breath of the <strong><a href=\"https:\/\/www.sage.com\/en-za\/blog\/three-tips-to-avoid-tax-return-penalties\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=February+2022\" target=\"_blank\" rel=\"noopener\"><strong>tax year-end (TYE)<\/strong><\/a><\/strong> on their necks.<\/p>\n<ul>\n<li><a href=\"https:\/\/www.sage.com\/en-za\/cp\/sagecloudpayrollsoftware\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=February+2022\" target=\"_blank\" rel=\"noopener\"><strong>Click here to get advice from Sage this tax year-end<\/strong><\/a><\/li>\n<\/ul>\n<p>This year\u2019s crunch-time is compounded by complexities related to the COVID-19 pandemic and the recent spate of changes made to payroll legislation.<\/p>\n<p>To remain compliant, business owners (or their payroll and HR function, if they have one) must stay up to date on how legislative changes impact their TYE processes.<\/p>\n<p>It\u2019s not easy. In fact, in the recent Sage <strong><a href=\"https:\/\/www.sage.com\/en-za\/blog\/white-paper-payroll-and-hr-in-sa-rising-to-the-challenges-of-change\/\" target=\"_blank\" rel=\"noopener\"><em><strong>Payroll and HR in SA: Rising to the challenges of change<\/strong><\/em><\/a><\/strong> report, 77% of respondents say they battle to grasp complex payroll taxes, and 50% struggle to explain tax calculations to their employees.<\/p>\n<p>Time is already in short supply for many SME owners as they juggle multiple roles from payroll and HR to being the in-house barista.<\/p>\n<p>The need to keep up with regulations means more hours checking and double-checking PAYE, UIF, medical aid, and pension fund figures \u2013 to name just a few.<\/p>\n<p>This leaves little to no time to pursue business benefits such as Employment Tax Incentives (ETIs) and the Skills Development Levy, which help lower hiring costs through reduced PAYE contributions.<\/p>\n<p>Only 52% of SMEs currently take advantage of ETIs. Throw in COVID-19, the global shift to remote and hybrid working, the <strong><a href=\"https:\/\/www.sage.com\/en-za\/blog\/10-ways-to-increase-payroll-and-hr-data-security-today\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=February+2022\" target=\"_blank\" rel=\"noopener\"><strong>increased need for data security<\/strong><\/a><\/strong>, and the penalties for incorrect payroll taxes, and complying with TYE can seem like an impossible task.<\/p>\n<p>Fear not. These four tips will help protect your business from costly fines and possible litigation \u2013 and sail you through this year\u2019s tax year-end.<\/p>\n<h3 class=\"my-4\">1. Consider outsourcing<\/h3>\n<p>Understandably, outsourcing <strong><a href=\"https:\/\/www.sage.com\/en-za\/blog\/glossary\/what-is-payroll\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=February+2022\" target=\"_blank\" rel=\"noopener\"><strong>payroll<\/strong><\/a><\/strong> is not always viable for a cash-conscious small business.<\/p>\n<p>Nonetheless, if you don\u2019t have an accountant or payroll expert in-house, it\u2019s well worth looking into the cost of an outsourced payroll vendor.<\/p>\n<p>Consider the following benefits of having such a resource on your team:<\/p>\n<ul>\n<li>Keeping employee records up to date<\/li>\n<li>Submitting tax remits<\/li>\n<li>Filing tax returns<\/li>\n<li>Processing payroll in line with current legislation<\/li>\n<li>Identifying discrepancies<\/li>\n<li>Providing advice (like how to sign up for ETIs)<\/li>\n<\/ul>\n<p>The COVID-19 pandemic has made many employees remote or hybrid workers, which adds layers of time-consuming <strong><a href=\"https:\/\/www.sage.com\/en-za\/blog\/staying-ahead-of-hr-and-payroll-legislation-and-compliance\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=February+2022\" target=\"_blank\" rel=\"noopener\"><strong>complexity for payroll and HR practitioners<\/strong><\/a><\/strong>.<\/p>\n<p>The research backs this up, with 83% of respondents to the Sage Payroll &amp; HR research saying they spend most of their time dealing with manual tasks, such as repetitive administration and employee data maintenance.<\/p>\n<p>Chances are you\u2019ll realise that <em>not <\/em>having an outsourced payroll function is costing your business more.<\/p>\n<h3 class=\"my-4\">2. Keep employees engaged and informed<\/h3>\n<p>Ensuring payroll compliance is primarily \u2013 but not solely \u2013 your responsibility.<\/p>\n<p>Your employees have an essential part to play in helping your business stay compliant with current legislation.<\/p>\n<p>For example, they need to follow your company\u2019s expense policy to the letter and keep accurate records of their time and expenses.<\/p>\n<p>It\u2019s the kind of administrative stuff that easily slips off people\u2019s radars, so be sure to walk your employees through what\u2019s required of them and provide regular refresher training.<\/p>\n<p>If you don\u2019t have a comprehensive policy to guide your employees on all practices that affect their pay, now is the time to put one together.<\/p>\n<p>Not only will it help keep your company compliant, but it will also provide a helpful resource for employees who wish to know more about additions to and deductions from their earnings.<\/p>\n<p>Remember to double-check your payroll data before you submit your year-end tax return. Ensure your employees\u2019 full names are spelt correctly and that their ID or passport numbers and mailing addresses are correct.<\/p>\n<p>It\u2019s easy for typos to creep in when employee information is inputted manually, which can cause all sorts of problems down the line.<\/p>\n<h3 class=\"my-4\">3. Adopt a self-service platform for employees<\/h3>\n<p>Checking and double-checking employee data is time-consuming, so why not set up a self-service platform for employees to do it themselves?<\/p>\n<p>It\u2019s a fully transparent and easy way to ensure that all your personnel data is accurate.<\/p>\n<p>Employees also benefit as they\u2019re able to track their personal information, including sick leave, holiday requests, and timesheets, from anywhere at any time.<\/p>\n<p>You can also upload important company information to the self-service platform, such as policy updates to keep your employees up to speed.<\/p>\n<p>Self-service HR and payroll is an all-round winner because it saves you and your payroll team time to focus on other crucial tasks.<\/p>\n<p>In fact, 56% of respondents say that digitising payroll and HR data could save them a ton of valuable time and effort.<\/p>\n<h3 class=\"my-4\">4. Implement automation<\/h3>\n<p><strong><a href=\"https:\/\/www.sage.com\/en-za\/sage-business-cloud\/payroll\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=February+2022\" target=\"_blank\" rel=\"noopener\"><strong>Cloud-based, automated HR and payroll software<\/strong><\/a><\/strong> is a game-changer. Built from the ground up for specific business needs, it eliminates errors from manual data entry, syncs with local legislation, and updates in line with changing regulatory requirements.<\/p>\n<p>In addition to helping your business stay up to date on legislation, automation also:<\/p>\n<ul>\n<li>Keeps your business prepared for an audit,<\/li>\n<li>Classifies employees and contractors correctly, and<\/li>\n<li>Ensures on-time payments.<\/li>\n<\/ul>\n<p>All the above impacts your tax return, which makes them priority areas to address.<\/p>\n<p>Simply put, bolstering your business with automated software will make it even harder to make mistakes with payroll that could affect your compliance.<\/p>\n<p>Upping the ante even more, a whopping 96% of respondents agree that automated payroll and HR systems should be integrated with accounting software to enhance accuracy and compliance even further.<\/p>\n<h3 class=\"my-4\">Don\u2019t wait for TYE<\/h3>\n<p>There is no need to spend the beginning of every year stressed to the hilt as you wade through your employee and payroll data to submit on time.<\/p>\n<p>The goal for any SME owner is to prep for tax year-end all year-round. Enlisting the support of cloud-based HR and payroll software does this automatically <em>and<\/em> enables seamless integration with your accounting systems.<\/p>\n<p>With year-end tax tasks simplified and taken care of, you can lift your head and focus on the things that aren\u2019t so simple \u2013 <strong><a href=\"https:\/\/www.sage.com\/en-za\/blog\/6-payroll-trends-to-prepare-for-in-2022\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=February+2022\" target=\"_blank\" rel=\"noopener\"><strong>like the human aspect<\/strong><\/a><\/strong>.<\/p>\n<p>It takes time and effort to attract, engage, and retain the best talent to drive your business\u2019s growth.<\/p>\n<p>One thing\u2019s for sure: a company that doesn\u2019t make mistakes with employee data or fall short on legislative compliance is an attractive place to work.<\/p>\n<p>Visit <strong><a href=\"https:\/\/www.sage.com\/en-za\/cp\/sagecloudpayrollsoftware\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=February+2022\" target=\"_blank\" rel=\"noopener\"><strong>tax.sage.co.za<\/strong><\/a><\/strong> for the latest expert advice, tips, and support to help you stay ahead this Tax Year-End.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A new year is typically a stressful start for many small to medium-sized enterprises (SMEs) that are already feeling the hot breath of the tax year-end (TYE) on their necks.<\/p>\n","protected":false},"author":57,"featured_media":556302,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[1033],"class_list":["post-556300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-sage"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/556300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=556300"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/556300\/revisions"}],"predecessor-version":[{"id":556432,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/556300\/revisions\/556432"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/556302"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=556300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=556300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=556300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}