Why mid-year switches go wrong
Changing payroll systems part-way through a financial year is completely doable — but it’s where year-to-date figures quietly fall through the cracks. Many businesses simply start capturing in the new system from the changeover date and assume the earlier months will sort themselves out. They don’t. When EMP501 reconciliation time arrives, the new system only knows half the year, and the numbers won’t add up.
The YTD figures you can’t afford to lose
A few totals must carry across intact for your tax year to reconcile correctly:
- Year-to-date taxable earnings for every employee.
- PAYE already deducted and paid over to date.
- UIF and SDL contributions to date.
- Tax-year totals for allowances, fringe benefits and deductions.
- Accrued leave balances per employee.
PAYE in particular is calculated across the full tax year, so if the opening balances are missing or wrong, the tax on every subsequent payslip is thrown out too — not just the history.
Take-on figures vs. full recapture
There are two clean ways to bring history across. The first is to capture take-on balances: the year-to-date totals as at the changeover date, entered as opening figures so the new system calculates correctly from that point forward. The second is a full recapture of each earlier pay period, which rebuilds complete payslip history rather than just totals.
If you only need the numbers to reconcile going forward, take-on balances are often enough. If you need full payslip history — for an audit, for employee requests, or simply for a complete record — a full recapture of the earlier periods is the way to go. The right choice depends on what you’ll need to produce later.
Doing it in Sage Pastel Payroll & HR
For businesses on Sage Pastel Payroll & HR, an import layout can make capturing multiple periods or take-on balances far quicker than manual entry, especially with several employees. Whichever route you take, the recaptured figures should be reconciled against the amounts actually paid and against your SARS submissions before you rely on them.
A simple rule of thumb
If you’re switching systems and you’ll have run two or more pay periods in the old system during the current tax year, plan the history transfer deliberately — don’t leave it to chance. Getting the take-on right at the start is far cheaper than untangling a broken reconciliation months later.
Need this handled for you? Gray Consulting recaptures and reconstructs payroll inside Sage Pastel Payroll & HR — remotely, accurately, and to your deadline. See our payroll recapture service or get in touch.