If you have signed an employment contract that specifies something different to the Basic Conditions of Employment Act (BCEA), this will supersede what’s outlined in the Act provided that there is agreement between the parties and the conditions specified are not less favourable than the BCEA, warns Cathie Webb, member (and prior executive) of the South African Payroll Association (SAPA).
 
The BCEA is committed to regulating fair labour practice for both employers and employees in South Africa. It clearly explains what needs to be done when notifying an employer that you are leaving and what the employer needs to do when it comes to final salary payments. The Act also covers a multitude of additional issues and challenges that could face the business or the employee in the workplace, providing clear guidelines that are upheld by law.
 
However, when it comes to calculating remuneration during termination periods, there are some complexities that need to be addressed, which may not be covered by the BCEA.
 
The BCEA states that the notice period must be four weeks (for someone who has worked for more than 6 months with the company).  Many companies, though, require a calendar months’ notice. If the signed contract is for a calendar month, then the employee and payroll have to adhere to this timeline. Generally, the terms and conditions outlined in a signed contract will trump those outlined by the BCEA and employees need to be aware of this from the outset.
 
“That said, an employment contract may not offer working conditions worse than the basic conditions specified in the BCEA,” says Webb. “Employees do need to check their contracts before signing them to avoid unpleasantness. It is exciting to have a new job lined up, but the time to negotiate your employment terms is before you start, not after.”
 
Payroll needs to know
“It is critical that payroll be aware of what’s outlined in an employees’ contract to avoid any confusion when the person resigns,” adds Webb. “For example, many companies do not allow you to take annual leave in your resignation period, but situations may arise that make taking leave during this period a necessity.  This possibility needs to be planned for, so that both the employer and the employee know how this would be dealt with, and what is to be paid out in the final payslip.  Clarity from both sides is essential.”
 
Payroll needs to know and understand the rules of the 3rd parties who are paid from employee deductions / contributions.  Medical aids run from calendar month to calendar month, and contributions are usually made in arrears.  This means that the final deduction from payroll pays for their final contribution to the medical aid.  Pension and provident funds may work differently, with their month running from the 16th of one month to the 15th of the next.  This may mean that, in a company where a 30 day notice period applies and an employee resigns before the 16th of the month, they do not contribute to the fund in their final month, while if they resign after the 16th, there will still be a deduction.
 
Other pay elements like final commissions, travel claims and re-imbursements, shift allowances, etc., should also follow what has been stipulated in the contract of employment. 
 
Employees are also not aware that quite often they are not paid on the 25th of their last month.  Companies have been burned by employees leaving the moment they receive their final salary, and not working the last 5 or so days of their final month.  So companies may have a policy to pay employees who are leaving on first day of the following month. This must be outlined in the contract and will affect the employee if not clearly communicated when they resign.  This may result in an employee having to make special banking arrangements to deal with debit orders which may be set to be processed towards the end of the month.  Payroll can make this process a lot smoother.
 
“The BCEA also outlines how much notice is required according to how long a person has worked at a company,” says Webb. “If you have worked for less than six months it is one week’s notice, if for more than six months it is two weeks’ notice, and if it is more than a year it becomes four weeks’ notice.”
 
Webb emphasises that payroll plays a vital part in ensuring that both employee and employer finish their last month amicably.  
 
“Things need to be maintained by both payroll and HR so that when a person leaves all elements are calculated correctly and comply with the conditions outlined by the BCEA,” concludes Webb.
 
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

If you’re like most South Africans, your favourite day of the month must be payday! Bills get paid, the freezer gets filled and, budget permitting, a few luxuries may be indulged in. But have you stopped to think about the many payroll professionals who make payday possible?
 
Yet, according to Lavine Haripersad and Cathie Webb, both Executives of the South African Payroll Association (SAPA), there’s so much more that payroll does. “It’s time to recognise the many contributions payroll professionals make,” says Webb. “That’s why, on 15th August, SAPA launched its annual National Payroll Week, a campaign already celebrated religiously in the UK, US and Canada.”
 
The initiative will raise awareness of the important role payroll plays in the economy, business and people’s lives. This year, Payroll Week falls over the dates of SAPA’s national conference: 10th - 11th September for the Johannesburg event, 13th September in Cape Town and 14th September in Durban. The official slogan for National Payroll Week South Africa is “We Pay it Forward.”
 
Payroll’s contributions
“In most companies, payroll is seen as a back-office support service,” says Haripersad. “During National Payroll Week, we aim to celebrate and highlight how payroll professionals benefit their companies or the clients they service.”
 
A good payroll team motivates workers to be productive because they know they will be promptly and correctly remunerated for their labour. They also offer a human face to employees who need advice on the complicated calculations that determine their take-home pay. Plus, through voluntary deductions, payroll helps employees manage their money and reach their financial goals. In addition, they keep their organisations compliant with hundreds of ever-changing laws regulating income, taxes, information protection and more.
 
At the same time, payroll acts as a strategic advisor, providing management with information to better plan their workforce needs and control labour costs. Then there’s the economy. “A little-known fact is that payroll contributes 37.2% of the country’s total revenues,” reports Webb. It also ensures that financial planning services, like medical aids and retirement funds, are paid on time. However, that’s just the tip of the iceberg. Other payroll experts, like consultants, service providers or software producers, all contribute to a system that works reliably every month.

Celebrating the week
Making National Payroll Week successful starts with the payroll professional. “We’re asking our members to get creative and find unique ways to draw attention to the occasion and their services,” says Webb. They can hang posters on department notice boards, have colourful balloons in the office, or send electronic flyers announcing the event to everyone they deal with. To build awareness, they should share their photos or fun facts on social sites like Facebook, Twitter or LinkedIn, being sure to use the hashtag #PayrollWeekSA.

​They can also reach out to local news reporters, radio, bloggers or electronic news outlets to highlight their celebrations. Finally, National Payroll Week is about education, so they could hold workshops to help employees understand how their payslips are calculated.
 
SAPA asks organisations and the public to support payroll during National Payroll Week. “And next time you open your payslip,” asks Haripersad, “please remember the hardworking people behind it.”
 
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

Traditionally payroll has been perceived as a less exciting domain of those in dull clothing immersed in numbers from dusk to dawn. However, like many industries today, payroll has been disrupted by technology and transformed by innovation, changing career paths and creating new opportunities.
 
In this digital era, software has stepped in to hold the reins of the numbers while payroll professionals find the patterns, manage the people and stand at the front line of company culture. It has become a career perfectly suited to young people with curiosity and mathematical capability.
 
“Payroll is a terrific career for young people looking for an opportunity that challenges their people skills, their mathematical talents and their ability to think outside the box,” says Cathie Webb, Executive, South African Payroll Association (SAPA). “Payroll is the largest cost that the company carries every month and those who work in this area become a strategic part of the business. They are fundamental to how the business operates.”
 
Not only has payroll changed thanks to technology, but it has evolved in its relevance to the organisation. It demands a savvy mind and the ability to unlock important insights – perfect for young and agile minds and those who are hungry to grow as individuals and in their careers.
 
“Payroll has also undergone changes in its structure,” adds Webb. “Now there is career progression from junior to mid-level to senior, dependent on the size of company you work for. In addition, there are recognised payroll qualifications at NQF Levels 4 and 5 as well as a BCom – strong business qualifications that can stand anyone in good stead across multiple areas of the organisation.”
 
Proactive payroll pays off
For young people just leaving school and looking to expand their horizons and explore different opportunities, there are also a variety of learnership programmes available. These provide school leavers with the ability to learn payroll practice while earning money over a two to three-year period.
 
“We are starting to see a lot of younger people choose this career today,” says Webb. “Payroll can be seen as the “shop front” of the company to its employees - it gives you the ability to impact how people feel about the business they work for.”
 
Payroll plays a powerful role in engaging with people and building a company’s reputation. Usually, if people are unhappy, it is payroll that’s the first to find out and can be the first to make a difference in their lives. Payroll is the department that sees evidence of the litmus test of how people appreciate, and feel appreciated by, their company. Add into this the advancements of technology and the variability of industry, and payroll is easily one of the more dynamic careers available today.
 
“You are part of the creative team that works at building how people perceive the company they work for, and the benefits provided by the company,” concludes Webb. “And, because every company needs someone to run their payroll, you can choose to work across a multitude of different industries. Payroll in a bank compared with a graphic design company or an architectural firm will be as varied and as exciting as the industry you choose. Payroll has become a really interesting career choice for the youth of today as it offers rich growth and plenty of opportunity.”
 
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

As big data, blockchain and the Internet of Things continues to change the way data and information is verified and shared, payroll management software will be able to increasingly position itself as a personal data authority across a variety of sectors, says Cathie Webb, executive at the South African Payroll Association.
 
“People need proof of income for a variety of purchases, ranging from buying a television or car to taking out a cell phone contract, a home loan application, or a lease on an apartment. Institutions usually require a series of recent pay slips, which can be an administrative hassle in terms of retrieving and printing seeing as most pay slips are delivered electronically these days,” says Webb.
 
She notes that adding to the frustration on a company or loan institution’s side, is the fact that these documents can be manipulated by consumers if they want to take on debt or purchase a product that they don’t really qualify for in terms of their income.
 
“One way that payroll management software can solve this problem is by being the middleman between consumers and companies who require proof of income. Instead of a consumer having to print out a series of pay slips to gain access to a loan agreement or goods, the payroll management software company could speed up the process by acting as a central information depository,” Webb points out.
 
Protecting privacy rights
While this is still an emerging reality, there are companies who are in the early stages of developing functionalities and features around privacy protection. Two significant hurdles that will have to be overcome and managed is changing the way that institutions request and verify private information from consumers, as well as managing how this type of information affects people’s right to privacy.
 
“While most consumers will agree, at least in principle, with the idea of not having to print out pay slips for everything, South Africa needs a more rigorous ombudsman to deal with any potential issues that may arise from an industry overhaul such as this. For example, if you feel that your personal data security has been threatened, where do you report it and what process do you need to follow?” says Webb.
 
The information that gets shared may not be as personal as your monthly salary, but small breaches of privacy may leave consumers exposed and this is something that will have to be considered ahead of time
 
People are still reckless in terms of agreeing to applications and third parties having access to information on their phones. Every time we agree to terms of service, we are giving away our rights to privacy.
 
“Companies’ Payroll departments have access to a lot of employee related personal information and they have a legal obligation to protect their employees’ information thanks to the POPIA (Protection of Personal Information Act). These responsibilities need to be carefully managed when it comes to sharing information in new ways that can improve lives, because data security will remain a risk,” Webb concludes.
 
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

The payroll professional has access to a vast repository of knowledge that can fundamentally change how employees engage with their income and the organisation.
 
While the payroll expert may innately understand how tax, medical aid and budgets fluctuate, for the employee this can be a number-filled minefield that makes little sense. By sharing knowledge and insight, the payroll practitioner could transform how employees feel valued by their organisation.
 
“People’s crises are often financial,” explains Cathie Webb, executive at the South African Payroll Association (SAPA). “They want to know why medical has gone up by 10% when their salary has only risen by a consumer price index related 5%, how to balance their budget, and how taxes impact on their finances.
 
Not all employees understand why they are taxed, who is responsible for the rules around taxation, and what impact this has on their daily lives.  Payroll should take on the role of educating and supporting employees, providing them with insight into new regulations and price hikes and how these will affect them in the future.”
 
By using foresight and planning, payroll can deliver relevant and timely advice to employees. Not when the changes hit, but in advance so everyone has time to prepare.
 
Proactive payroll pays off
“Share your knowledge through group sessions where you educate and inform people, not just one on one sessions that eat into your time,” adds Webb. “Use events such as National Payroll Week (every September!) to let people know what you do and why your expertise is invaluable.”
 
Many payroll practitioners find the idea of preparing regular training sessions outside their comfort zone, but these can really make a difference in how they engage with employees. In instances where the organisation is spread out across various branches, often those in the outlying areas have no idea what is going on. This is where payroll can shine.
 
“Payroll is the business internal shop window,” says Webb. “The information that comes out of payroll tells people a lot about how much the business cares about them. By proactively disseminating information from head office, payroll can show employees how much their needs are valued.”
 
If employees are battling with savings or budgets, perhaps introduce a savings scheme which they can access in December or when their main school fees are due. It’s an easy thing for payroll to do and it adds so much value. Another idea could be to implement a solution such as a debit card that doesn’t need each employee to FICA, but allows them to keep their cash secure.
 
“Look at how you are presenting your pay information to your employees as your payslip alone can add inordinate value,” says Webb. “Don’t have employees wait a week after payday to receive their payslip.  Consider sending an SMS to let them know they have been paid. Ensure that people are paid at the same time every month – it’s unfair to shift dates and times when they are relying on their funds.”
 
It says a lot about a company if its staff aren’t paid promptly or regularly.  Things can go wrong, though, and if they do, payroll can be the light that shines on the problem, giving people plenty of warning, explaining what has happened and giving clear timing as to when it will be resolved. Communication around payment failures is crucial and payroll should lead the charge.
 
“Finally, it is worth giving the ideas employees bring to payroll some thought, and proactively approaching management if they have value. Remember that a small thing can make a big difference to employees and their morale,” concludes Webb.
 
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

During the recent Budget Speech, former Finance Minister Malusi Gigaba announced that an additional R4.2-billion has been allocated to National Health Insurance (NHI) over the medium term. Cathie Webb, executive at the South Africa Payroll Association, questions what has been done with the money that has already been allocated to the plan and how will the new funds will be used.

“The NHI isn’t operational and government still has a way to go before it will come into effect. As the NHI seems still to be in a conceptual and planning phase, it’s time to question what infrastructure is being implemented – even if this infrastructure is only in administrative terms – to bring the programme to life,” says Webb.

The NHI funding gap
An additional R700-million has been set aside for the NHI for the 2018/19 period, R1.4-billion for the 2019.20 period and R2.1-billion for the 2020/21 period – all to be funded through amendments to the medical tax subsidy. These funds, however, are far from what the NHI will cost.

A White Paper by economics consultancy Econex estimates that the cost of healthcare under the NHI by 2025 will be R256-billion, which is almost as large as the estimated revenue collected from South Africans in the 2015/16 fiscal year. The White Paper also estimates that the NHI expenditure in the 2020/2021 will be R185-billion.

“The cost projections of the NHI leaves massive funding gaps, making it hard to envision how the plan will be rolled out and how government will be able to pay for a national health care initiative. Even if the money somehow materialised, how exactly the NHI is going to work remains vague. Adding money to a system that isn’t working now won’t solve the problem,” says Webb.

Will our hospitals be adequate?
Many existing public hospitals are understaffed and there is an underinvestment in key medical infrastructure and equipment. With the goal of making a package of essential healthcare free to all citizens, the Department of Health will not only have financial concerns, but also operational concerns about how they are going to provide healthcare to the masses.

“The NHI has very high, noble ideals, namely that everyone should have access to quality healthcare and that this care should be free, equitable and efficient. If the current general hospitals can’t meet these needs now, what will happen when millions of people are added to the mix?” asks Webb.

National healthcare schemes where essential healthcare is free to citizens isn’t uncommon, but it’s not necessarily working in other parts of the world. In Britain, for example, government is currently looking at alternatives to their universal healthcare plan, is riddled with challenges including hours-long waits in the emergency unit, patients being treated in corridors during intense flu season and cancelled elective surgeries.

“Perhaps a starting point to ensuring that citizens have access to medical care would be to insist that every business ensure that their employees are covered by a medical aid.  A country’s ability to supply care is rarely able to meet the demand of its citizens. In South Africa, where the population is growing faster than we can fund and where approximately two-thirds of the country’s revenue is already being allocated to social security matters, we need to question whether this is the right option for South Africa and be realistic about the funding that it will require,” concludes Webb.
​
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

The year is off to a brisk start, with many people feeling refreshed after the holidays and promising themselves that they will maintain a better work-life balance in the new year. But is it really possible in this day and age?
 
Cathie Webb, director at the South African Payroll Association (SAPA), says people talk about work-life balance as if one can interchange the one with the other without any issue. “I do not think that is as achievable as we would like it to be.”
 
Understand your purpose
People have to take responsibilities for their roles in a business, and they should understand that they are employed for a purpose. People also need to know where they fit in to the organisation that they work for, and why they are important for the business.
 
“In many instances people understand what their jobs are, but they don’t understand why it is integral to the success of the business,” says Webb. There are very few businesses who have “reserves” to fill in the gaps when people are not available, or when they are not doing what they are supposed to do.
 
The South African reality
Many South Africans have to commute extraordinary distances between their home and workplaces, especially when dependent on public transport. Increased traffic and deteriorating roads mean that an eight to five job may take many more hours out of one’s day than the time actually at work.
 
People who tend to have a more balanced work and private life are those who generally work in isolation and who do not have to keep regular office hours. Even if a company allows for more flexibility – where people can start earlier and finish earlier or the other way around – there is an added level of complexity as soon as the job is “customer facing” or the employee is part of a team.
 
Webb stresses the importance of honest and open communication at work and at home. “It is important for employees to be honest about challenges they may be facing at home. They must be equally honest at home about challenges they are facing at work.”
 
Signs of imbalance
Webb says people start working longer hours to get tasks done, or they tend to come in a bit later than they should in the mornings. Managers who have smaller teams will be able to pick up on signs that the balance between work and private life is affected. “Make time to meet with your team regularly. It does not have to be a lengthy meeting with everyone weekly, but you need to meet often enough to understand what is happening in their lives.”
 
Webb says if someone has issues at home which affect performance at work, one should try to find workable solutions for the company and the employee who is trying to keep all the balls in the air.  For example, time given off formally to deal with a specific issue, rather than “stolen” hours having to be taken randomly through a work day, may mean much to an employee under pressure.
 
Statistics provided by the South African Revenue Service and National Treasury indicate that 2,744 taxpayers worked over-time in 2013 compared to 656 in 2016. The income from overtime dropped from a combined R33m to R14m during the same time.
 
There is no underlying information to these stats, and the reduction may be due to the economic requirement for businesses to reduce overtime spend.  But, Webb says, it may signify an increased awareness on the part of employers that people need “me time” too, even in a pressurised economy.
 
Stock responses
When people are asked how they are, most tend to give the “stock response” of Fine, Hectic or Does not help to complain. Many of these responses become a habit. People should learn to check their habitual response to this question, and ask themselves why they use them.  Managers equally have to pay attention to why people respond the way they do.  If someone is always genuinely hectic, there is something wrong, somewhere.
 
“We are responsible for the way we think about ourselves. We can make ourselves feel more positive about ourselves and our day, as well as making others feel more optimistic.”
 
The key
Webb says the balance comes from being “fully present” when you are at work. People have to be committed to the tasks they need to fulfil. “You need to find a way to switch-off when you are on your way home so that you can also be fully present at home.”
 
She says the importance of spending time with the family over dinner (not in front of the television) should never be underestimated. If you need to put in extra time at home, at least spent time during dinner to catch up on the day.

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 Associatio

In November last year, the Labour Law Amendment Act, 2015 was passed by Parliament. While the media has mostly focused on the right to longer leave for new fathers, the provisions cover a broader spectrum of concerns.
 
“It’s not just good news for fathers-to-be,” says Cathie Webb, Director at the South African Payroll Association (SAPA). “It’s also a breakthrough for same-sex couples, especially men, who were never legally entitled to the time needed to introduce a child into their family and bond with it.” In the past, fathers were only given 3 days family responsibility leave, paid by their employer.

Parental, adoption and commissioning parental leave
The new law allows an employee who is the parent of a child to take at least 10 consecutive days of parental leave, which commences on the day the child is born or adoption is granted. If an adopted child is below the age of 2, an employee is entitled to at least 10 consecutive weeks of adoption leave, which starts on the day the adoption order is granted. For a surrogate motherhood agreement, a commissioning parent is also allowed at least 10 consecutive weeks of leave, which begins on the date of childbirth.
 
Only one parent may take adoption or commissioning parental leave (both 10 weeks). The other must take parental leave (10 days). However, the law is clear that which one does which is at the discretion of the parents. “In other words,” notes Webb, “employers cannot pressure an employee into nominating their spouse or partner for the longer leave period. This is a deeply personal decision, the right to which must be respected.”
 
The Act amends the Basic Conditions of Employment Act, 1997, so that a collective agreement may not reduce an employee’s entitlement to parental, adoption or commissioning parental leave.
 
In all 3 leave scenarios, an employee must notify their employer in writing at least one month in advance of which date they intend to start leave and which date they will return to work. If that’s not possible, for example, in the case of a premature birth, they must inform their employer as soon as they can.
​
UIF benefits
Parents may now claim parental, adoption or commissioning parental benefits from the UIF. However, only one may apply for adoption or commissioning parental benefits; the other must claim parental benefits. For fathers to claim, they must be legally registered as the child’s father as per the Children’s Act, 2005. Application for benefits must be made within 6 months of the date of childbirth or adoption.

Webb says that SAPA noticed one omission. It might seem obvious that the right to adoption or commissioning parental leave and benefits would fall away for an employee with a stay-at-home spouse or partner. But the law lacks definitive language dealing with this scenario, and that could lead to confusion.
 
“Overall, SAPA believes the new legislation is much needed and will contribute to stronger family ties in South Africa,” concludes Webb.
​
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

Most organisations’ biggest and most important expense is its payroll, and no business can risk this resting in the wrong hands, especially when budgets are tight and employees are under pressure.
 
A well-run payroll is the lifeblood of the organisation, as are the qualities of professional support and integrity that underpin the role itself. Ethics and a strong moral code are mandatory qualities for anyone entering the payroll profession, but how are these guaranteed and what happens when they need to be enforced?
 
“The organisation needs to know that the right person with the right ethics is sitting in the payroll hot seat,” says Cathie Webb, Director, South African Payroll Association (SAPA). “They need to know that the person handling their employee pay is dotting the I’s and crossing the T’s and not letting things slip through the proverbial cracks.”
 
Unfortunately, not all payroll practitioners are created equal and what some see as a non-negotiable ethical stance, others see rules that can be bent.
 
A professional stance
“For most professional payroll practitioners, the qualities of integrity, trustworthiness, competence and reliability uphold their own code of behaviour,” says Webb. “However, for the organisation to ensure that these are qualities ascribed to by their payroll practitioner, they need reassurance in the form of a professional body.”
 
A professional organisation is key to establishing a national code of ethics that is adhered to by members and respected by business and other organisations. Practitioners that commit to membership are more likely to follow the code outlined by the institution and will be more inclined to remain in line with the behaviour of their peers.
 
“Once you have signed on the line, you are more aware of the rules, and the consequences of not sticking to them,” adds Webb. “It makes you more careful in how you practice your role. A good reputation is everything - you don’t want things to slip through and for your reputation to become damaged in the process.”
 
Take a stand
A professional membership provides the organisation with the wherewithal to confront fraud or bad practice. It ensures that any practitioner engaging in fraudulent activities is exposed to peers and other organisations. Unfortunately, many organisations don’t take a stand when it comes to their own experiences of poor payroll practice.
 
“We have noticed that when a business asks for assistance in auditing their payroll matters,  as they’ve suspected something isn’t right, if the payroll practitioner is found guilty, 99% of companies don’t bother to take it further legally,” says Webb. “They cite cost and time, but it can be that they are embarrassed that they didn’t follow procedure.”
 
Access to a professional organisation such as SAPA will allow for the organisation to reveal poor practice and prevent it from happening to someone else. They need only report them to the board with proof in order for the practitioner’s membership to be revoked. This level of involvement by organisations will go a long way towards ensuring that ethics remain top of line and mind.
 
“Corruption is rife and companies must be careful,” concludes Webb. “Ensure your payroll practitioner is a member of the professional body (renewable annually), check their reputation with SAPA, and encourage them to become a member if they are not already. Put the right structures in place to mitigate fraud and limit temptation – and a good payroll practitioner can help you do that.”
 
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 Associatio

The gig economy (also known as the ‘sharing’ economy) has been in the media quite recently. Issues related to Uber drivers in the United Kingdom, for example, is just one example of how the digitisation of services, globalisation and the rise of independent contractors are changing the way we differentiate between ‘employees’, ‘service providers’ and ‘contractors’.

Cathie Webb, Director of the South African Payroll Association, says owing to available business models today varying greatly, it would be nearly impossible to create a one-size-fits-all approach that would apply to all workers. Despite this, the focus should be on ensuring that people are compensated fairly and legally protected in our changing, increasingly flexible economy.

Why payment and accountability becomes a complex issue
“The reason why it’s difficult to create a clear-cut payment strategy for gig workers is because there are different types of working situations. A worker could be using an international app to find work and deliver products or services and there wouldn’t necessarily be a local intermediary company involved, which would make payment accountability a more complex legal issue,” says Webb.

The United Kingdom recently ruled that Uber drivers aren’t ‘self-employed’ and should earn the national living wage. This decision has been appealed and negotiations are ongoing, but it highlights the way that many businesses may need to change their models and definitions regarding ‘employee’ vs ‘contract worker’.

Other examples of the gig economy are running smoothly. Etsy allows craftsmen to market their products to an audience that they wouldn’t normally be exposed to and Fiverr.com enables professionals to share their skills in an international marketplace.

“These are easier gig economy scenarios because an invoice is sent to a customer and the intermediary or website takes a cut. This is like paying rent for a shop floor space,” says Webb.

Clarity in work contracts are needed
In South Africa, the national Income Tax Act has guidelines to establish whether a person is in standard or non-standard employment, along with guidelines as to how these workers should be compensated and taxed. One of the key elements is ensuring that the employment contract is correctly formulated.

“Essentially, if someone is giving one’s capacity to serve at the disposal of the company, that person is an employee.  If the person is producing a product or providing a service for a company, then the person is a private contractor.  This detail should be clearly defined in the contract between the two parties,” says Webb.

There are also many other guidelines by the South African Revenue Service that can be used to test whether a person is an independent contractor or an employee. The number of hours spent on the company’s premises, the amount of supervision that is required by the company, and whether the contractor employs additional people, for example, can indicate whether a worker should be submitting invoices each month or should be paying to Pay As You Earn (PAYE) tax. 

​“This is a complex issue and there will undoubtedly be many more conversations around the compensation and benefits that apply to gig economy workers.  What needs to be determined is whether the gig economy worker is as free is we believe to manage their own output, deliverables, and earnings,” concludes Webb.

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