South Africa’s tax year-end (TYE) is fast approaching, and small to medium-sized enterprises (SMEs) must ensure they have measures in place to comply with all appropriate legislation.
It is important to stay compliant across all aspects of your business’s finances and payroll, as failure to do so can lead to big fines.
However, it is challenging for SME owners to constantly juggle their numerous organisational responsibilities alongside dealing with complex tax rules.
To make it easier for South African businesses to remain on the right side of the law, Sage has developed a list of tips to help SMEs handle TYE efficiently and effectively – listed below.
Employees must keep accurate records of their payroll-related actions, such as leave, to help your business avoid tax compliance issues.
Businesses must provide guidance to these employees about what their role is in ensuring tax compliance, and how they should compile this data.
The entire process can be streamlined by implementing a self-service platform for employees to enter their records – mitigating time-consuming administrative processes and ensuring accurate personnel data is recorded at all times.
In 2024, using cloud-based HR and payroll software that is powered by automation is a no-brainer.
There are two main benefits to this:
- The software eliminates human error.
- Systems are automatically synchronised with legislation and regulation updates.
Your business will therefore always be up to date and prepared for an audit, and your TYE processes will be heavily streamlined thanks to easy access to organised data.
Outsource your payroll
To streamline your business further, you can outsource your tax processes to a dedicated accountant or payroll expert. This professional will do the following:
- Keep employee records up to date.
- Submit tax remits.
- File tax returns.
- Process payroll in line with current legislation.
- Identify discrepancies.
- Provide advice (such as how to sign up for ETIs).
While outsourcing payroll isn’t always a viable option for smaller businesses, you may be surprised by how affordable it actually is.
Sage’s range of world-leading payroll and HR tools is the best way to get through TYE with ease.
Its tools are built for a wide range of business sizes and use cutting-edge technologies like AI and automation to make it far simpler to stay compliant.