The importance of labour to the success of any organisation cannot be overlooked. There is specific legislation that governs how employees are paid and how they are taxed. The incorrect calculation or late payment of salaries and wages demotivates employees and leads to industrial action. In addition to that, SARS will charge penalties and interest for late submission of employee tax returns and the payment of tax. It is therefore vital that payroll administrators are fully aware of what is required of them in their duties.