The rise of the gig economy has led to an influx of temporary workers within companies.

Jethro Malapane, Executive Committee Member at the South African Payroll Association (SAPA), says that a continual inflow and outflow of short-term engagements by independent workers not only impacts the way a company’s payroll department needs to function, but it also impacts the finances of those who choose gig work over full-time employment.

“If you are a gig worker, you likely benefit from a more flexible working schedule and the ability to choose the jobs that you pitch for. The downfall is that companies aren’t obligated to offer you the same types of benefits that full-time workers receive. You will have to do your financial planning yourself,” says Malapane.

He says that gig workers need to plan their budget to match their income, have cash stashed away for emergencies and plan for tax contributions.

“As a self-employed worker, you are responsible for your annual tax contributions. Remember that your income may fluctuate and that your budget needs to allow for busy as well as slow work periods. Besides committing to your retirement and medical aid policies, you should also have a nest egg for emergencies,” says Malapane.

Updating a payroll department for gig workers
He says that many companies and payroll departments have had to adapt their processes to accommodate gig workers.

“Uber and Taxify overhauled how their payrolls were administered to accommodate gig workers. While the majority of local companies currently have a smaller number of gig workers compared to full-time employees, this balance will continue to shift in future. If the gig economy hasn’t already affected your payroll department, it will soon,” says Malapane.

Payroll professionals and business need to get comfortable with a fluctuating payroll that has a variety of types of workers that it needs to accommodate.

One of the ways to streamline this effort is to use an intuitive, future-ready system or software that has been set up to automate payroll calculations, tax deductions and UIF contributions for various types of workers.

“Companies who are still clinging to the old way of doing things will soon have to start relooking software and web-based solutions that are available on the market. There are great payroll solutions that can automate many of the calculations for you and ensure you are meeting your tax, UIF and other statutory obligations,” says Malapane.

Don’t fail to embrace change in your payroll department
Even with intuitive systems, the gig economy has still put an administrative burden on payroll and Human Resources to address the issues of legislative alignment.

“This is still new territory for many of us and we’re still learning, but the important thing is that your company does not fail to embrace the change. Challenging current wisdom and making radical changes to accommodate new workers and pay them efficiently is what is needed to thrive in the new gig economy,” concludes Malapane.

ENDS

MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, [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

Payroll is often seen as merely a processing function. Christelle Helling, Executive Committee Member at the South African Payroll Association (SAPA), says payroll affects every aspect of the business, from the morale of its employees to its reputation.

Boost employee morale
Helling says people come to work for their salaries and inconsistent or late salary payments not only affects their livelihood but has a ripple effect on morale at the workplace.

“If payroll misses one of its deadlines, it could mean that staff don’t have funeral cover, medical aid, or a contribution towards a medical fund that they’re relying on for their old age. This has a drastic and immediate impact on the morale of staff and it’s a responsibility that rests solely on payroll’s shoulders,” says Helling.

A watchdog for businesses
The payroll department is the watchdog of the company. Payroll professionals are the ones who must continuously stay up to date with tax and legislation changes as well as ensure that these changes are implemented throughout the business.

“Whether a change in policy or legislation results in a benefit percentage change or behind-the-scenes administrative compliance changes, payroll needs to lead the way with change management for the rest of the business. Payroll needs to align itself with Human Resources’, the business’ and the government’s requirements to make sure everyone sticks to the rules,” says Helling.

Spearhead the uptake of technology
The payroll departments of industry-leading companies are often the first to adopt digital tools such as new ticketing systems or moving to centralised shared services.

“My payroll department launched a ticketing system that enables employees to launch queries and ask for assistance on the fly from their mobile phones. We’ve also automated reporting to free up resources and we use business analytics to drive decision-making. As the people who report on the bottom line, other departments look to payroll to take the lead when it comes to implementing future-focused processes and systems,” says Helling.

A haven for people
People are often worried about approaching a payroll professional with questions about their salaries, benefits or deductions. Being welcoming to questions about the most important aspect of people’s lives – their livelihood – is what makes a good payroll department.

“Knowing a person’s take-home salary isn’t exactly a conversation starter. Payroll professionals know it can be daunting to approach someone with salary-related questions. One of the most important but unseen roles of payroll is to be a friendly, accommodating and empathetic face that welcomes queries. A good payroll professional will reassure a person that their questions are valid and important,” says Helling.

A barometer of the way a company does business
The payroll department is often a very good barometer of how companies treat their employees, says Helling.

“If a company reliably pays employees every month, it says something about how they value their staff. If payroll is disciplined, it will filter into other departments. How a payroll department works tells you a lot about how a company works,” concludes Helling.

ENDS

MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, [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