Payroll health check
A once off, independent review of a payroll you already run. We find the exposure before SARS, the Department of Employment and Labour or the CCMA does, and give you a written report with what it will cost to fix.
When a health check is worth doing
There are a few situations where this pays for itself immediately, and business owners usually recognise at least one of them:
- The person who ran payroll has left, and nobody knows exactly what state it was in
- You are about to take over a business, or sell one, and payroll liabilities are a normal due diligence finding
- SARS has raised an assessment or opened a verification on payroll taxes
- An EMP501 has failed to balance, or IRP5 certificates were rejected
- You have never had anyone independent look at it and would rather know now
- You are moving to a new provider and want the opening position established before the switch
What we examine
- Statutory reconciliation. EMP201s declared against payments actually made against the general ledger control accounts, month by month, for the period under review. This is where accumulated differences show up.
- EMP501 position. Whether the interim and annual reconciliations were submitted, whether they balanced, and whether certificates were issued.
- Tax calculation accuracy. A recalculation on a sample of employees: tax tables, rebates, medical tax credits, retirement fund treatment under section 11F, and the taxable portion of travel and other allowances.
- Source codes. Every earning and deduction type checked against the correct SARS code, since errors here flow directly into your employees' own tax returns.
- ETI. Whether the Employment Tax Incentive was claimed where it was available, and whether anything claimed was actually valid. Both under claiming and over claiming are common.
- UIF and COIDA. Whether monthly uFiling declarations were made, whether the COIDA registration is live and returns are filed, and whether earnings declared match the payroll.
- BCEA compliance. Payslip content, leave accrual and balances, overtime rates, public holiday pay, and whether termination payments were calculated correctly.
- Master data integrity. ID numbers, tax reference numbers, banking details, duplicated employee records and anyone still active who has left.
What you get
A written report, not a conversation. It sets out each finding, the rand exposure attached to it where one can be quantified, whether it is a historic issue or an ongoing one, and what has to be done to fix it. Findings are ranked, so you can see the difference between something that needs attention this month and something that can be scheduled.
Where remediation is required, we quote it as a fixed price separately. There is no obligation to have us do the fixing, and the report is yours either way. Some clients take it to their existing provider, which is a perfectly reasonable outcome.
What it costs and how long it takes
A health check is quoted as a fixed price before we start, typically in the R3,500 to R9,500 range depending on headcount, the number of periods under review and whether the underlying records are in good order. Turnaround is usually one to two weeks from receiving the data. The information we need is the payroll reports for the period, the general ledger, your SARS statement of account and access to view your eFiling profile.
Scope
What you get
Full statutory reconciliation
EMP201s, payments and control accounts agreed month by month for the review period.
Tax recalculation
A sample of employees recalculated from first principles against current legislation.
Source code review
Every earning and deduction checked against the correct SARS code.
ETI review
Under claims identified and recovered where possible, over claims flagged before SARS finds them.
UIF, COIDA and BCEA
Declarations, registrations, payslip content, leave and termination calculations reviewed.
Written report
Ranked findings with quantified exposure and a fixed price to remediate. No obligation attached.
Questions
Payroll health check: common questions
How much does a payroll health check cost?
It is quoted as a fixed price before we start, typically R3,500 to R9,500 depending on headcount, how many periods are under review and the state of the records. You know the number before any work begins.
How long does it take?
Usually one to two weeks from the point we have the data. What we need is the payroll reports for the review period, the general ledger, your SARS statement of account and view access to your eFiling profile.
Do I have to switch to PayStream afterwards?
No. The report is yours regardless. Some clients use it to fix things with their existing provider, and that is a legitimate result. We quote remediation separately if you want us to do it.
Will this trigger a SARS audit?
No. A health check is an internal review. Nothing is submitted to SARS as part of it. Where the review finds something that requires correction, we discuss the options with you first, including voluntary disclosure where it is appropriate, which generally produces a far better outcome than being found.
What if you find a large historic liability?
We quantify it, explain how it arose and set out the options: correction with penalty remission applications, voluntary disclosure, or a payment arrangement with SARS. Knowing the number is the point. An unquantified liability is the one that sinks a sale or a funding round.
Can you review a payroll run by another provider?
Yes, and that is a common reason for the engagement. We review the work as it stands. The report goes to you, not to them, and you decide what happens with it.
Let's put a number on it.
Tell us your headcount and what you need covered. You get a written, fixed monthly quote within 48 hours. No obligation, no sales pressure.