What is payroll processing?

Payroll processing is the procedure taken to pay employees at the end of a payroll period. This process involves multiple steps to ensure that pay is properly calculated, tracked, and doled out and that the correct amounts for tax, company benefits, and other deductions are withheld. Payroll is often managed and administered by a dedicated payroll professional, but it could also fall under the purview of human resources.

When it comes to processing payroll, it's usually best to invest in a payroll service or to work with an accountant, because you avoid much of the cumbersome administrative and tax-related work. Despite the benefits of outsourcing payroll, however, many small businesses decide to do it on their own to save money.

If you're interested in processing payroll manually, there are a few steps you need to take. Depending on the size of your business, this can be a very complicated process. And, if you're not already an expert in payroll and tax law, you could run into issues with the SARS.