SARS can quickly detect discrepancies and variances between payroll submissions and submitted financial statements. It is absolutely imperative that employers ensure their payroll systems are fully compliant and as such may consider auditing their payroll internally, before SARS comes knocking at their door. This process is also called a “payroll diagnostic” and is imperative to ensure compliance and mitigate risk.
Our payroll diagnostic assists large corporates in attaining complete compliance with tax laws. The payroll review 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 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.