Monthly Payroll SOP

Owner: Cary Mabunda (Operations Manager) + Tsakane Sebone (Bookkeeper)
Run by: 20th of each month
System: ERPNext — erp.velobiotics.com

Step 1 — Pre-checks (18th of month)

• Confirm no new hires need Salary Structure Assignment
• Confirm no salary changes (written approval required)
• Check for leave without pay (LWP)
• Confirm bank details correct for new employees

Step 2 — Create Payroll Entry (20th)

Navigate: HR → Payroll → Payroll Entry → New

Field	Value
Company	Velobiotics
Payroll Frequency	Monthly
Start Date	1st of current month
End Date	Last day of current month
Posting Date	Last day of current month
Payroll Payable Account	Payroll Payable - V
Payment Account	300101 - Velobiotics FNB Current Account - V

Click Get Employees → all 12 active employees should appear → Save → Submit.

Step 3 — Verify Salary Slips

Wait 1-2 mins, then refresh. Check each slip: gross pay, UIF (max R177.12), Pension (5%), PAYE auto-calculated.
Also verify employer contributions: UIF Employer (1%), SDL (1%), Pension Employer (5%) should appear as statistical components.

Step 4 — Submit Salary Slips

Bulk submit from Payroll Entry.

Step 5 — Create Payroll Recognition JV

Navigate: Accounting → Journal Entry → New

Account	Debit	Credit
600100 Gross Salaries	R xxx
600120 Employer UIF Expense	R xxx
600200 Employer Pension	R xxx
200320 Net Salary Payable		R xxx
200330 PAYE Payable to SARS		R xxx
200340 UIF Payable to SARS		R xxx
200310 Retirement Fund Payable		R xxx

Step 6 — Per-Employee Advance/Loan Recovery JVs

For each employee with an advance or loan deduction:
• DR 200320 / CR 300220 (Advances) — party_type=Employee
• DR 200320 / CR 300230 (Loans) — same

Step 7 — EFT Payment (by 25th)

Export salary slip totals → load into FNB Business Online → pay by 25th.

Step 8 — Statutory Payments (by 7th of following month)

Payment	Amount	To
PAYE	Sum from salary slips	SARS eFiling
UIF (Employer + Employee)	Sum × 2	UIF via uFiling
SDL (Skills Levy)	1% of gross payroll	SARS eFiling
Pension Fund	Employer + Employee	FNB Umbrella Fund

Key GL Accounts

Code	Account	Used For
600100	Gross Salaries	DR on payroll JV
600120	Employer UIF Expense	DR on payroll JV
600200	Umbrella Retirement Employer	DR on payroll JV
200320	Net Salary Payable	CR on recognition, DR on payment
200330	PAYE Payable to SARS	CR on recognition, DR on payment
200340	UIF Payable to SARS	CR on recognition, DR on payment
200310	Retirement Fund Payable	CR on recognition, DR on payment
300101	FNB Current Account	Payment account for EFTs