Doing your own payroll is possible, but it requires a solid understanding of South African laws and regulations. Here’s a step-by-step guide to help you: Understand the Legal Requirements Familiarize yourself with South African payroll laws, including the Basic Conditions of Employment Act (BCEA), Income Tax Act, Unemployment Insurance Fund (UIF), Skills Development Levy (SDL), and the Compensation for Occupational Injuries and Diseases Act (COIDA). Set Up a Payroll System Choose a method for managing payroll, such as manual calculations, spreadsheets, or payroll software. Payroll software can automate many tasks and reduce errors. Collect Employee Information Gather necessary information from your employees, including personal details, bank account information, tax numbers, and any other relevant data. Calculate Gross Pay Determine each employee’s gross pay based on their salary or hourly wage and the number of hours worked. Deduct Taxes and Contributions Calculate and withhold PAYE tax, UIF contributions, and any other mandatory deductions. Remember to also account for voluntary deductions like retirement funds or medical aid. Calculate Net Pay Subtract the total deductions from the gross pay to determine each employee’s net pay. Generate Payslips Create and distribute payslips to your employees, detailing their earnings, deductions, and net pay. Submit and Pay Taxes Regularly submit PAYE, UIF, and SDL to the South African Revenue Service (SARS) and make the necessary payments. Maintain Records Keep detailed records of all payroll transactions, including payslips, tax submissions, and payment receipts. While it’s possible to manage your own payroll, many businesses choose to use payroll services like those offered by Taxleaders to ensure accuracy and compliance with all regulations. This can save time and reduce the risk of errors and penalties.