Why you should be doing a Payroll Audit

By Ruan Schreuder, Sales Executive & Certified Sage Consultant, AWCape

When I was still in school, my father taught my sister and I to always have our car checked by a qualified mechanic before going on a long trip. By doing this, will give him peace of mind that our vehicle was in a good condition.  It is at that point that my sister and I became very excited as we knew that the holidays were around the corner.

Just as we have our vehicles serviced on a regular basis and checked before a long journey, likewise, we need to check our payroll systems and have it audited at the beginning of the new tax year journey. With all the tax and business requirement changes, it is necessary to make sure that everything is running smoothly and accurately. 

By conducting a payroll audit (also known as a compliance audit) every year, can help to: 

    •  Prevent payroll fraud – weeding out ghost or mismarked employees 

   •  Catch manual errors made when entering numbers onto a system  

   •  Spot calculation mistakes if doing the payroll manually 

   •  Removing old, terminated employees from the system 

   •  Confirm the system is calculating leave according to the company’s leave policy 

   •  Verify Tax calculations and Tax Tables 

   •  Checking your system is in line with company policy 

If you fail to audit your payroll process, your business can end up forking out excess money, breaking employment laws, and remitting incorrect tax amounts.  

AWCape has a team of certified consultants who can assist in doing a payroll audit and making sure your business runs as efficiently, timely and accurately as possible. 

Get in touch with our team at businessdevelopment@awcape.co.za