The struggling South African economy has created considerable hardship, with low salary increases coupled with greater calls on disposable income. And this has resulted in a perfect storm driving people to commit fraud, says Arlene Leggat, a director of the South African Payroll Association (SAPA).
 
“People make unwise decisions when they are under sufficient pressure,” she states, adding that companies can help to combat high levels of payroll fraud by encouraging their payroll administrators to become members of a professional association.
 
“Payroll administrators manage large amounts of money. It therefore makes sense to professionalise this industry from a number of viewpoints, not the least of which is the prevention of fraud,” Leggat puts forward.
 
She states that if payroll professionals have signed up to a code of ethics, they understand the impact. Acting ethically is a conscious decision, and the more it is done, the more it becomes second nature.
 
Additional measure
“The other side of the equation is to ensure that the correct controls are in place.” Leggat advises companies to collaborate with their external auditors to design the most effective controls. Because they interact with so many organisations, auditors are best placed to advise on fraud patterns, and what controls work best. Given that payroll processes are software-driven, she adds that real-time variation reporting is emerging as a key mitigator of fraud risk.
 
“Professionalisation, with its combination of an ethical code and ongoing education, and proper controls are the two pillars payroll-fraud detection and mitigation,” she concludes. “Fraud generally, and payroll fraud in particular, are real threats, but these basic measures can really help.”
 
Drivers of professional membership
“It’s a relatively new concept in South African payroll, but the trend towards professionalisation in other disciplines, such as tax practitioners and directors, is quite marked. The drivers are very similar: to ensure that people have the right skills for the job, that they sign on to a code of ethics and are subject to the professional association’s disciplinary procedures.”
 
As a member of SAPA, a payroll administrator undertakes to adhere to its code of ethics, and to undertake structured continuous professional development to ensure his or her skills remain current. Any contravention of the code of ethics would lead to the rescinding of the professional certification.
 
Globally, payroll fraud is the number-one source of accounting fraud and employee theft, according to the Association of Certified Examiners. It occurs in 27 percent of all businesses, and the average instance lasts on average for 36 months.[1] Research by PwC shows that South African companies suffer hugely from HR fraud, of which payroll fraud of various kinds is prominent: falsification of entitlement/ employee benefits (36%), false wage claims (39%), ghost employees on the payroll (30%) and misclassification of payroll expenses (16%).[2]
ENDS
 
[1] Matthew Garrett, “Payroll Fraud—A big threat and how to avoid it”, Forbes (10 September 2013), available at https://www.forbes.com/sites/matthewgarrett/2013/09/10/payroll-fraud-a-big-threat-and-how-to-avoid-it/#40c6826c746f.
[1] PwC, Economic Crime: A South African pandemic (Global Economic Crime Survey 2016), available at https://www.pwc.co.za/en/assets/pdf/south-african-crime-survey-2016.pdf.

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za  
 
For more information on SAPA please visit:
Website: http://www.sapayroll.co.za/
Twitter: @SAPayroll
LinkedIn: The South African Payroll Association

Fraud—A big threat and how to avoid it”, Forbes (10 September 2013), available at https://www.forbes.com/sites/matthewgarrett/2013/09/10/payroll-fraud-a-big-threat-and-how-to-avoid-it/#40c6826c746f.

[2] PwC, Economic Crime: A South African pandemic (Global Economic Crime Survey 2016), available at https://www.pwc.co.za/en/assets/pdf/south-african-crime-survey-2016.pdf. 

 Author: Cathie Webb, Director at The South African Payroll Association
During Women’s Month, it is important to consider the gender related problems we still face as professionals.  One of the major concerns is the gender pay gap.  Although this gap has been growing smaller over the past years, it remains a legitimate problem.  

Even in a female dominated sector (such as retail, healthcare, cleaning, primary education and secretarial and administrative functions, including payroll), it is often found that male employees are paid more than their female counterparts for the same work.  

Some of the remedies women can consider regarding the gender pay gap include:  choosing to further your education in a field you know is in demand, completing your education, choosing a field or sector that pays well, negotiating your salary at each new career step and requesting constant on-the-job training.  

Being a true professional 
A payroll professional is a payroll employee who not only performs their basic job requirements, but also comprehends the implications of managing the payroll function in their business environment.  They should be able to add strategic input to the company they work for, rather than only producing accurate and timeous pay slips.  

Relevant advice on issues such as pending changes to tax law and requirements, making recommendations and transitioning their knowledge with ease from one type of business to the next are some of the important skills a payroll professional should have.  Depending on their level of employment and the size of the employer, they should be able to manage a team, deal with HR issues, advise employees on tax issues and be able to manage projects.

The importance of the right qualifications 
Traditionally payroll employees were trained by their predecessors and by the manufacturers of the payroll software used by the company.  These imposed limitations in the scope for understanding how to improve systems and a wider view of business and strategy as a whole.  As with all other qualifications, when the trained professional learns about the “outside world”, how other professionals work and what is considered to be best practice internationally, they will have a broader impact on their business and be able to add more value.

Until the early 2000’s, there were no formal payroll qualifications available in South Africa.  An FET certificate in Payroll Administration (NQF Level 4) and an NQF Level 5 Diploma were then introduced, which were both approved by the South African Qualifications Authority (SAQA).  Training providers were also accredited by the Services SETA.  In late 2015, a BCom degree with a focus on payroll was launched by the Da Vinci Institute for Technology Management, a Mode 2 university. The Da Vinci Institute selected Accsys as the payroll faculty for the degree.  These qualifications assist in teaching payroll employees the necessary skills they will need to perform more than just their basic work.

Awarding payroll professionals
Each year SAPA runs an awards programme for payroll professionals.  The programme is designed to give recognition to the people who make a difference in the payroll industry and in their respective businesses.  
The awards programme serves to motivate payroll employees to go the extra mile in their jobs and truly become payroll professionals.  There are three levels in the awards programme, Junior, Senior and Team, and nominees must satisfy strict criteria that measures their professionalism.

​A list of the criteria is available on the SAPA website, as well as information on who can qualify for the awards, the nomination process and the awards themselves.

Nominations for the 2017 awards closed on the 11th August, 2017 and winners will be announced at the Annual SAPA Conference on 6th September 2017 at Emperors Palace.

ENDS

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za  

For more information on SAPA please visit:
Website:  www.sapayroll.co.za
Twitter: @SAPayroll
LinkedIn: The South African Payroll Association

The payroll environment is not for the faint-hearted. It is demanding, exacting and driven by deadlines. It is a career where mistakes can be expensive and missing a deadline potentially catastrophic. For those who work in this industry it is essential that they possess a strong work ethic, a commitment to quality and the ability to deliver measurable and reliable outcomes. 
 
Keeping pace with the monthly deadline and the daily checks can be challenging, but those who have the determination can provide organisations with essential and relevant insight and value.
 
“The critical factor is to have the right knowledge and skills as these will ensure success in the payroll environment,” says Lavine Haripersad, Payroll Manager, South African Payroll Association (SAPA). “There are several training milestones that have to be achieved in order to build the knowledge required to become a comprehensive and reliable payroll professional.”
 
Payroll professionals should be up to date with the latest payroll legislative requirements, understand best practice and governance, and be aware of industry trends impacting on the payroll environment. This understanding will allow them to make informed decisions about their role, the work they do and driving business growth. It is a challenging environment, but it is also a rewarding one, especially if the practitioner is committed to education and training.
 
Connecting the dots
“Conferences and events are incredibly valuable for professionals who want to expand their knowledge base and their career opportunities,” says Haripersad. “In addition to attending sessions that offer insight and education, there is the chance to network with other practitioners in the industry. Most events offer attendees a forum where they can connect directly with thought leaders, partners and leads.”
 
The weight of knowledge that is traditionally borne by the payroll professional has not previously been recognised as much as it is today. As compliance and legislation continue to impact on mandate and deliverable, the role has become increasingly important. It is vital that practitioners understand how their skills influence organisations and people, and how to capitalise on this to improve performance and engagement. 
 
“It is essential that every practitioner map their road to success and have a clear understanding of issues around legislation impacting payroll, labour laws affecting payroll, governance, employee benefits, payroll education and technology,” adds Haripersad.
 
Conference
In September, the South African Payroll Association will be hosting the SAPA Annual Conference. It is set to run from 6th -7th September in Johannesburg with two half-day regional conferences scheduled to run on 12th September in Cape Town and 14th September in Durban. The theme of the conference is ‘Portraits of Success’ and it has a clear mandate to focus on how the payroll practitioner can drive personal and professional success through knowledge and understanding.
 
“It is our objective as an organisation to promote excellence in the payroll profession and ultimately create our own ‘Portraits of Success’,” concludes Haripersad. “It is an opportunity for payroll practitioners to learn from the smartest minds in our industry while connecting with their peers and building their careers.”

ENDS
 
MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za  
 
For more information on SAPA please visit:
Website: http://www.sapayroll.co.za/
Twitter: @SAPayroll
LinkedIn: The South African Payroll Association