In simple terms, payroll refers to employee information, hours worked, salaries and wages, deductions, net and gross pay.

Before setting up a payroll system to pay your employees, you need to collect information from them which is obligatory. They will have to fill in a form and the data can then be put into the system.

If your employees are paid by the hour, then records must be kept of the hours that they have worked. To work out a person’s total wage, you must multiply their rate of pay by hours worked and then factor in deductions for tax and social security purposes.

Employees on a salary, on the other hand, are paid a yearly rate that is split over 12 months less deductions, but it is also important to make sure that the time has been put in.

With salaries and wages, what you pay to the employee before deductions is referred to as gross pay and what they take home is net pay. This must be displayed on pay stubs.

You must also keep track of overtime and the rates that you pay depend on the type of employees that you engage. If they are paid by the hour, they must be compensated for extra hours worked in a day or week. Shift workers must also be compensated for extra hours worked.

Payroll also involves fringe benefits and any accruals of time of in lieu for extra hours worked. Effective payroll also means keeping track of time off and holidays and also extends to keeping track of sick leave.

Testimonials

Our business was transitioning from being a sales led to finance led company. We needed to improve several aspects of our company including management of aged receivables, understanding of our financial position and establishing platforms for growth. Engaging Dexterous has greatly improved the financial control of our company.

Our company resource has been able to focus on sales and marketing and make informed decisions based on sound advice from Dexterous. We now have clear visibility of our company’s financial position so purchasing and operational decisions can be made with confidence. We trust the advice provided by Dexterous and can see that it has improved our company’s cash flow and management while maximising profit.
We have had such a positive experience with Dexterous that we have recommended them to our suppliers and business partners.

Lee Michaels – Director, Habitat Digital

James, Nick and the team at Dexterous have become integral to the success of our growing business. Our operation has accounting complexities that we did not foresee, including dealing with income and expenses in a large number of currencies. This would have been almost impossible for us to manage ourselves as a small business, and cost prohibitive with many other accounting partners. Dexterous has made managing these complexities extremely easy, allowing us to focus on growing our business.

Jackie, who manages our day-to-day book keeping is efficient, extremely responsive and a real pleasure to deal with. James and Nick provide the senior accounting oversight and advice that we need to thrive. Thank you Dexterous.

Jessica Baird Walsh – Director, Atelier Child

"We previously controlled the bookkeeping function in-house however as the business was growing this was no longer viable. We engaged Dexterous to provide bookkeeping services and assist our business in transiting to cloud based accounting software. With the transition to the cloud, Dexterous enabled this to occur within a short time frame and in very professional manner.

Dexterous has provided peace of mind to our business and we are comfortable our accounts are in safe hands. Having the onshore management is an important factor to consider as you have someone to call upon locally when in need. Our daily bookkeeping tasks are ‘dealt with’ in a time manner ensuring we're focused on the overall management of the accounts"

Marvin Van Stralendorff - Carbon Reduction Institute

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