Only 3% of payroll administrators in SA fit into companies' 'high-level' categories, according to Ansie Snyders, training manager at Softline VIP.
“This is a concerning statistic when one considers that payroll is one of the biggest expenses in most companies, and that non-compliance with legislation is a serious risk,” she adds.
Gone are the days that the payroll administration function is seen as a back-office job that requires little expertise, says Snyders. “Over the past 10 years, changes in legislation affecting payroll have greatly affected the way the job is done today and, more importantly, by whom it is done.
“New legislation introduced skills levies and brought significant changes to tax and labour laws, as well as UIF reporting. Companies were suddenly faced with the realisation that in order to avoid penalties for non-compliance, they had to bring payroll administration out of the attic and into the boardroom. Payroll is now a priority business process in which no risks can be taken.”
As a result of the importance of payroll administration, qualified and experienced payroll administrators are in high demand. Unfortunately, notes Snyders, since the responsibilities of the payroll administrator have changed so much, and payroll administration is becoming a specialised field, most companies are looking for payroll administrators with experience.
“Payroll administration is much more than just knowing your software product. In any industry, experts in their field are hired to lessen the risk of non-compliance to the business, and the same should apply in the payroll industry. Therefore, employ a payroll administrator who knows the legislation, who knows what payroll best practice is and who is able to apply this to your company's specific payroll requirements,” she notes.
“Failing to recognise the importance of accuracy and timeliness in the payroll department will cost you dearly, and to see this department as merely a processing function is to miss the point completely. Payroll professionals control your biggest controllable cost - the salary bill - and protect your reputation by ensuring compliance with a wide range of legislation.”
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