SARS TARGETING PAYROLL POST LOCKDOWN

Conduct a Payroll Audit before it is too late!

The Mid-Term Budget Speech in October 2020 confirmed that SARS is facing a massive budget deficit and has been encouraged to team with the National Prosecuting Authority (NPA) to bring non-compliant taxpayers to book.

This should set off the alarm bells for CFOs, FM’s, HR and Payroll Managers due to SARS’ aggressive tactic to audit company payrolls and impose massive penalties where there is non-compliance. This comes as no surprise as many companies have irregularities and discrepancies in their payroll, due to changes in remuneration structuring and the incorrect application of COVID-19 relief measures.

Our team of seasoned Tax Attorneys, Payroll Specialists and Remuneration Experts have a proven track record of assisting Large corporates and Multinational groups assess their payroll accuracy through a Payroll Audit.

LEARN MORE

CONTACT US

MORE INFORMATION

Where payroll discrepancies have been detected through our bespoke Payroll Audit process, a VDP application can be submitted to regularise a company’s tax affairs without the payment of massive penalties, however, this only remains available before SARS knocks on your door.

The Payroll Audit assists large corporates in attaining complete compliance with tax laws. It is performed at a detailed level, to determine the completeness and accuracy of the payroll information, payroll wage-type set-up and whether this is aligned to company policy and bargaining unit agreements (where applicable), Fund rules, various insurance-related elements per Insurance company premiums/unit rates, relevant tax legislation and other Statutory Laws.

The potential risk, should the employer take no action and non-compliance is discovered, could be an unpleasant dispute which will result in significant penalties that may exceed the actual taxes payable.

OUR PROCESS

Our engagement typically starts with an initial technical meeting to discuss challenges faced and areas of concern from a payroll perspective. We then outline the steps to conduct a successful payroll integrity audit to assess payroll accuracy. A typical payroll audit includes the following:

Verifying that personnel documentation has been compiled in line with Labour law requirements.

Review of concluded agreements with employees.

Assessment of the payroll calculation and records for each employee.

Identification of discrepancies and potential areas of risk from a tax and policy perspective.

Specifying corrective actions, designing best practices in terms of contract templates, contract amendments, internal employment and remuneration policy.

PAYROLL AUDIT TEAM

Tanya Tosen
Master Mobility and Tax Specialist

Craig Rocher
Chartered Accountant

Mariana Stander
Head of Remuneration Services