{"id":70419,"date":"2022-11-15T12:58:20","date_gmt":"2022-11-15T10:58:20","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=70419"},"modified":"2025-05-07T15:50:35","modified_gmt":"2025-05-07T13:50:35","slug":"tips-to-wrap-up-bonuses-and-year-end-payroll","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/tips-to-wrap-up-bonuses-and-year-end-payroll\/","title":{"rendered":"Tips to wrap up bonuses and year-end payroll"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tTips to wrap up bonuses and year-end payroll\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2022-11-15T12:58:20+02:00\">November 15, 2022<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Tips to wrap up bonuses and year-end payroll\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-za\/blog\/tips-to-wrap-up-bonuses-and-year-end-payroll\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-za\/blog\/author\/ziataylor5\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2021\/09\/Zia-350x350.jpg\" class=\"entry-author__image\" alt=\"\" \/>\t\t\t\t<span class=\"entry-author__name\">Zia Taylor<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"\">With the final payroll of the year and bonus runs around the corner, it\u2019s easy to get flustered about everything your business needs to do and have in place before you can get to those long-awaited festivities.<\/p>\n\n\n\n<p class=\"\">As an HR and payroll professional, it can be a stressful time to make sure that employees are getting paid correctly for public holidays, annual leave, bonuses, and more.<\/p>\n\n\n\n<p class=\"\">Naturally, compliance remains key to a successful pay run, especially when you throw things like bonuses into the mix. To remain compliant, businesses must stay up to date with any <a href=\"https:\/\/www.sage.com\/en-za\/blog\/staying-ahead-of-hr-and-payroll-legislation-and-compliance\/\">legislative and regulatory changes<\/a> that affect the industry.<\/p>\n\n\n\n<p class=\"\">This is certainly not easy, as according to the <a href=\"https:\/\/www.sage.com\/en-za\/blog\/white-paper-payroll-and-hr-in-sa-rising-to-the-challenges-of-change\/\">Sage Payroll and HR in SA: Rising to the challenges of change research report<\/a>, 77% of respondents say they struggle to understand complex payroll taxes. Trying to figure out bonus payments, deductions, and staff information on top of that is a LOT. But, being prepared for it doesn\u2019t have to be.<\/p>\n\n\n\n<p class=\"\">Here are some things that are important to know beforehand:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Additional compensation<\/h2>\n\n\n\n<p class=\"\">Now, we all like the sound of that, don\u2019t we? But it\u2019s not always as simple as it seems.<\/p>\n\n\n\n<p class=\"\">There\u2019s nothing worse than getting a little extra money, which then pushes you into a new tax bracket, leaving you even more broke than you were before!<\/p>\n\n\n\n<p class=\"\">Payroll professionals need to understand the fundamental principles of additional compensation so that they are able to offer informed advice when creating policies so that employees are correctly compensated.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Bonuses and tax<\/h2>\n\n\n\n<p class=\"\">Not all companies offer bonuses, but for those that do, the criteria for earning a bonus must be determined and communicated well ahead of time, either as part of company policy or as part of the employment contract.<\/p>\n\n\n\n<p class=\"\">As bonuses are considered remuneration, companies must process the bonus payment along with the employee\u2019s regular salary, and then deduct the tax and pay it over to SARS.<\/p>\n\n\n\n<p class=\"\">Bonuses must be declared to SARS. Benefits other than cash bonuses must also be reported on the employee tax certificate.<\/p>\n\n\n\n<p class=\"\">These benefits include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Vouchers: These are fully taxable (subject to a few exceptions)<\/li><li>Other non-cash benefits: There are numerous fringe benefits that employers can grant their employees, and these are all taxed in their own way.<\/li><\/ul>\n\n\n\n<p class=\"\">It is advisable to check out SARS\u2019s <a href=\"https:\/\/www.sars.gov.za\/wp-content\/uploads\/Ops\/Guides\/PAYE-GEN-01-G02-Guide-for-Employers-in-respect-of-Fringe-Benefits-External-Guide.pdf\">set of guidelines<\/a> to accurately determine the tax on fringe benefits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Getting tax right<\/h2>\n\n\n\n<p class=\"\">You\u2019re paying tax on everything from overtime and commissions to bonuses (and a whole lot more), and these all affect how much income tax an employee will pay and is factored into their remuneration.<\/p>\n\n\n\n<p class=\"\">Keeping track of all these taxes can be tricky and time-consuming, but with the automation incorporated into&nbsp;<a href=\"https:\/\/www.sage.com\/en-za\/cp\/cloudtechnology\/\">cloud HR and payroll software<\/a>,&nbsp;you can run your payroll simply, quickly, and accurately\u2014every time.<\/p>\n\n\n\n<p class=\"\">Other ways cloud-based HR and payroll solutions can help you include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Data accuracy<\/strong>: Automation allows you to calculate employee salaries and deductions quickly and easily, and will alert you to any errors or inaccurate information. The software can be configured to pay your employees according to their earning bracket.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Reporting to SARS<\/strong>: Reconciliations and payroll data are easily submitted to SARS during the mid- and <a href=\"https:\/\/www.sage.com\/en-za\/blog\/watch-tips-on-staying-on-top-of-2022-tax-year-end\/\">year-end tax periods<\/a>.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Payslip management<\/strong>: No need for manual payslips surreptitiously placed on employees\u2019 desks (unless you want to, of course). Cloud-based software allows you to print or email payslips, or even make them available online.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Compliance<\/strong>: This one we all know by now. Cloud-based software is automatically updated as legislation and regulations change, which means you can stay compliant and in the receiver\u2019s good books all the time.<\/li><\/ul>\n\n\n<div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-356f69b7-8abd-4f89-b371-bae689c7ac3c\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-356f69b7-8abd-4f89-b371-bae689c7ac3c\"\n\t>Download your free copy of the 2022 payroll compliance guide<\/a>\n<\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Ok, so what now?<\/h2>\n\n\n\n<p class=\"\">Now we need to get to that payroll. Fortunately, there are numerous payroll requirements that employers can complete beforehand to help ease the burden of the final run.<\/p>\n\n\n\n<p class=\"\">To stay on top of these, we suggest using a checklist.<\/p>\n\n\n\n<p class=\"\">Success starts with a checklist. Yes, really. It\u2019s all good and well to think you have all your ducks in a row, but if you aren\u2019t ticking things off, you can quite easily lose track and forget about something important that will land you in hot water with the receiver.<\/p>\n\n\n\n<p class=\"\">Here is a good checklist to work from:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1.&nbsp;&nbsp;&nbsp; Confirm employee information<\/h3>\n\n\n\n<p class=\"\">When it comes to processing payments, it\u2019s vital to have the correct employee information. Verify their details with them, or, if you use a cloud-based HR and payroll solution, encourage them to update their details in the <a href=\"https:\/\/www.sage.com\/en-za\/blog\/how-to-choose-the-best-employee-self-service-software-to-increase-staff-engagement-customer-satisfaction-and-business-results\/\">self-service portal<\/a>.<\/p>\n\n\n\n<p class=\"\">Check that the following employee information is correct:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Names<\/li><li>ID or passport numbers<\/li><li>Bank account numbers<\/li><li>Income tax reference numbers<\/li><li>Address and telephone numbers<\/li><\/ul>\n\n\n\n<p class=\"\">Be sure to confirm and correct any details before you do your pay run.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2.&nbsp;&nbsp;&nbsp; Make sure you\u2019ve recorded all payments<\/h3>\n\n\n\n<p class=\"\">Was anything outside of the normal payroll paid to your employees? Things like commissions, bonuses, and the like? If you made these kinds of payments, it is time to update your records to reflect them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3.&nbsp;&nbsp;&nbsp; Update your leave schedules<\/h3>\n\n\n\n<p class=\"\">Without an automated system, it is nearly impossible to <a href=\"https:\/\/www.sage.com\/en-za\/blog\/the-ins-and-outs-of-leave-management\/\">keep accurate records of leave<\/a>.<\/p>\n\n\n\n<p class=\"\">Manual forms are at risk of getting lost, or of data being captured incorrectly. Having cloud-based HR and payroll software in place ensures that employees can submit and manage their leave through a self-service portal with built-in rules.<\/p>\n\n\n\n<p class=\"\">This data is stored accurately as the software factors in weekends and public holidays, as well as all the five- or six-day work week nitty gritty. This saves your business time, money, and recon frustration, and what\u2019s more, you\u2019ll have the full leave history of each employee, which will help you determine staff leave behaviour patterns.<\/p>\n\n\n\n<p class=\"\">Approving annual leave early will also help you manage your year-end pay run. Many employees like to take leave over the festive season, and some companies even have forced leave policies during this time. Regardless of how this leave comes about, it needs to be applied for in advance to ensure that <a href=\"https:\/\/www.sage.com\/en-za\/blog\/a-guide-to-leave-management-best-practices\/\">leave requests<\/a> can be approved, and employees can be paid on time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">4.&nbsp;&nbsp;&nbsp; Do your final payroll<\/h2>\n\n\n\n<p class=\"\">Processing lump sum payments such as commission and bonuses can be done by aggregating the tax across a number of pay periods. If you\u2019re paying staff a bonus at the end of the year, or paying out their leave in advance, you need to have a close look at how you process those payments.<\/p>\n\n\n\n<p class=\"\">It is always smart to harness the power of automation. <a href=\"https:\/\/www.sage.com\/en-za\/cp\/cloudtechnology\/\">Cloud-based, automated HR and payroll software<\/a>&nbsp;will change your life.<\/p>\n\n\n\n<p class=\"\">Tailored to your specific business needs, it eliminates manual data entry and automatically updates legislative and regulatory changes too. It helps prepare your business for an audit, correctly classifies your employees and contractors, and ensures that payments are made on time, every time, which is pretty handy when you want to be chilling on the beach instead of sitting in the empty office releasing payroll.<\/p>\n \n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Simplify your payroll &amp; HR with Sage<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Simplify your key payroll and HR processes with our latest cloud software solutions and helpful resources to support you throughout your employee lifecycle.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-za\/cp\/cloudtechnology\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-69399\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Tell me more<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"800\" height=\"450\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/02\/HR-and-Payroll_Cloud-Technology.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/02\/HR-and-Payroll_Cloud-Technology.jpg 800w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice enewsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-84fe79b5-668d-41f8-a0cc-6229018c4ac9\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Payroll professionals need to understand the fundamental principles of additional compensation so that they are able to offer informed advice when creating policies so that employees are correctly compensated.<\/p>\n","protected":false},"author":1295,"featured_media":69695,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[35,25],"tags":[321,213],"business_type":[3],"lilypad":[],"context":[],"industry":[],"persona":[12,14,15],"imagine_tag":[57,99],"coauthors":[447],"class_list":["post-70419","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance","category-money-matters","tag-compliance","tag-tax","business_type-medium-business"],"sage_meta":{"region":"en-za","author_name":"Zia Taylor","featured_image":"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1283894303.jpg","imagine_tags":{"57":"HR and Payroll","99":"HR software"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice South Africa","distributor_original_site_url":"https:\/\/www.sage.com\/en-za\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/70419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/users\/1295"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/comments?post=70419"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/70419\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media\/69695"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media?parent=70419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/categories?post=70419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/tags?post=70419"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/business_type?post=70419"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/lilypad?post=70419"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/context?post=70419"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/industry?post=70419"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/persona?post=70419"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/imagine_tag?post=70419"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/coauthors?post=70419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}