Sage One Payroll and Accounting solutions were unveiled to the Kenyan market a few weeks ago. Interested parties are still free to sign up for a trial. After the trial period, the cloud-based payroll service will be rendered to businesses (corporate and SMEs) at affordable rates as we covered here.
Back in the dark days, just before computer- and cloud-based payroll solutions became commonplace, payroll services were implemented using a simple approach. Payslips were issued to workers at the end of the month or week with the right amount of money, of course. Over time, the Kenyan business scene has grown, and this has complicated the processes in payroll thanks to income tax regulations that are being pushed by the government and other relevant authorities to ensure compliance among employers.
From a business perspective, it is risky for an employer to fail to comply to the aforementioned requirements, be it through underpayment, wrong calculations, late submission of payroll taxes or deliberate evasion. In fact, authorities are strict, particularly in matters concerning statutory taxes such as income tax, National Social Security Fund (NSSF) and National Health Insurance Fund (NHIF). Employers who make mistakes are subject to fines and tough penalties.
Owing to the complexities and rapid changes in the tax matters, businesses may find it challenging to keep up with compliance requirements. As it has been seen, non-compliance is risky, which why Kenyan businesses need to reevaluate the use of manual procedures that involve paperwork and spreadsheet tools because they do not meet payroll needs satisfactorily. An automated solution will rid businesses of record keeping and payroll calculations hassles.
Sage One Payroll is an automated cloud service by definition, which solves payroll calculations that include several deductions, be it statutory or otherwise. It also generates compliance reports and keeps an accurate record of all activities. Also, it has been established that some businesses such as SMEs lack substantial manpower to make accurate payroll calculations – and the process is always cumbersome and time-consuming. The cloud-based accounting tool promises to save time spent on manual workarounds for payroll administration.
Secondly, automation aids reconciliation and overseeing of yearly changes in tax regulations that influence payroll tax calculations, not to mention miscellaneous changes in legislation such as the ongoing New Income Tax Act that may impact payroll. Sage One Payroll software receives constant server-side updates that align it to the latest tax laws, which eliminates the need for payroll recalculations for businesses that use manual methods. This kind of automation reduces chances of human error.
Inasmuch as compliance is paramount for businesses, it is not the sole reason as to why an automated payroll service should be adopted.
“The ability to generate tax certificates, reports and electronic payslips with the click of a button is a major timesaver for your payroll team. Automation also ensures that your employees receive accurate, on-time payments and payslips, which helps keep your workforce happy,” says Nikki Summers, Regional Director for Sage in East Africa.
What’s more, automation has the power to position a business in combating payroll fraud, which is one of the most popular executive crimes in the corporate world. Sturdy payroll solutions have stringent controls on financial fronts, which gives managers the power to police transactions. In addition, automation provides an audit trail, checks and balances as well as controls that are put in place to detect fraud and prevention of errors.
To sum it up, entrepreneurs are not motivated by the need to exercise excessive bureaucracy or adherence to rules and formalities, which is why automation is handy in such scenarios.
Sage One visualizes that payroll management and administration will be invisible by 2020, a feat that will see business builders dedicate more time on issues such as business strategy, workplace and customer satisfaction, to mention a few.
