South Africa is beginning to follow the international trend whereby companies are treating employees like they would their customers. In part, this is done by providing on-time and detailed payslips designed to boost employee satisfaction and increase the efficiency of query resolution.
For a business, there is no greater asset than its employees and keeping them happy and motivated results in employees being more engaged, productive and committed to the company. “One of the most important things that every employee wants is a clear understanding of their payslip and their contributions and deductions,” says Lavine Haripersad, Vice Chair, South African Payroll Association (SAPA). “If they understand every line, deduction and number, then they are immediately more positive and engaged. Unfortunately, the opposite is true when they are confused or bogged down in baffling details.” She adds that employees can easily become distracted and discouraged if they are paid incorrectly or not on time. However, if this issue is out of the equation, their focus falls back on their jobs, which automatically improves performance. Ensuring Trust A cultural shift is taking place across companies towards high-performance and high value-driven employees. Within this arena, payroll plays a significant role in ensuring employees’ trust in the organisation’s ability to provide them with financial stability and in taking the pressure off management who don’t have to worry about whether or why people aren’t being paid. “This is why it is important that the payroll department offers employees support by providing them with insight into how their benefits work, how the payslip structure works to their advantage, and by adding value,” Haripersad states, while adding that providing employees with access and visibility regarding this information fundamentally changes how they engage with their pay and the company. “In addition to open discussion around payslip structure, the department should consider providing employees with their payslips earlier than on payday,” adds Haripersad. “They can then immediately see an abnormal deduction and query this before payment. Of course, any issues also need to be addressed quickly to avoid discontent or concern.” Compliance and risk mitigation The same extends into the area of compliance and legislation – well-oiled payroll departments with exceptional payslip acuity are more likely to mitigate business risk and limit employee dissatisfaction. “Complying with legislation and ensuring accuracy in data and detail minimises the risk for the business and the employee,” says Haripersad. “The challenges around unionised employees can be managed by ensuring that they are taken care of correctly, and employees remain satisfied with pay and benefits. The business is assured of efficient payroll processes and a high level of service.” A professional payroll team with the right tools and systems can transform the payslip from a page peppered with numbers into an understandable and reliable mechanism by which businesses run smoothly and employees remain happy. The extra mile in providing insight, explaining the layout and ensuring every detail is correct – or every error swiftly amended – can fundamentally impact on the working environment and employee satisfaction. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, 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
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There are steps that can be taken to ensure that company Chief Financial Officers (CFO’s), who already have heavy workloads, can be assured of a fully compliant payroll without having to immerse themselves in the daily details.
As the stewards of financial health, this will enable them to fulfil their role to mitigate risk, manage compliance, deliver assurance to the Board and ensure that payroll is operating in a robust, automated and highly controlled environment. “To create a payroll environment that doesn’t need constant oversight and review, the CFO should implement an annual external audit of the full payroll process and controls,” says Lavine Haripersad, a director at the South African Payroll Association (SAPA). “In addition, the payroll department requires a structure that supports this control framework. These two working in tandem deliver a robust and highly controlled environment within which payroll thrives.” Alongside the annual external audit, the CFO should implement regular compliance audits. These will help keep the system fully compliant and minimise the risk of exposure. This can be further enhanced by a regular review of payroll codes to ensure they are compliant from an income tax perspective. A wall of protection “The recruitment process also supports the CFO in building a reliable payroll department,” adds Haripersad. “Talent management and recruitment can ensure that the right level of employee is hired - the role of Payroll Manager should be filled by someone who is multi-skilled, capable of handling pressure, and with extensive financial systems, analytical and technical expertise. Ethical and well-trained employees are crucial to the effective and sustainable management of the payroll department.” In addition, the CFO should work with the CIO (Chief Information Officer) or IT department to develop a robust IT strategy around data security and payroll system access. This is not only relevant in terms of the Protection of Personal Information Act (POPI) and its compliance requirements, but to ensure that confidential data remains that way. Currently the cyber security landscape is too volatile, and cyber criminals too successful, to not ensure that the highest possible controls are in place. Effective measures “Finally, introduce reporting and accounting controls into the payroll department as these add value to the CFO reporting process and keep them fully informed,” concludes Lavine. “An important indicator to the CFO that these systems are working well is when the payroll control accounts are clean.” To add further controls, the payroll department should implement good housekeeping, especially in complex economic times. Employees regularly leave or enter a company so records must be kept scrupulously up to date. If someone leaves, all company property must be removed and system access blocked immediately. Ticking these boxes at the outset will go a long way towards keeping system access to those who warrant it, and removing the risk of the disgruntled employee. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, 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 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, idele@thatpoint.co.za, 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 Government has been enmeshed in the process of establishing a new National Minimum Wage (NMW) for many years and finally the numbers have landed on the table and it is causing consternation across country and company. Pressing questions remain around the still low amount, and its viability in the current economy, the history of oppression that surrounds the current wage structure, and the hackles of industry rising around the impact of the cost to bottom lines.
Perhaps the most important point to raise before discussing budgets and costs, is that the this proposed minimum wage of R3,464 a month for a 40-hour week at R20/hour would still be significantly less than the R5,544 that research shows would be the Minimum Living Level- in 2016. While the proposed increase will positively impact the quality of life for millions of South Africans, it is still not enough. “The current proposed minimum wage is R20 per hour and many would argue it is enough, but the reality is that South Africans in the unskilled job spectrum can barely make ends meet,” says Nicolette Nicholson, South African Payroll Association, Exco. “Enterprise or business may argue it is enough, but this NMW won’t break the poverty and inequality barriers.” However, it is a start towards promoting economic growth. Change is one small step Currently, the minimum wage is set at the sectoral level and the urban/rural level and is done in consultation with the Employment Conditions Commission. The new NMW will apply across all sectors. The Commission has to consider the ability of the employer to carry on business successfully and examines issues such as: the operation of the small, medium and micro enterprise, the cost of living, conditions of employment, income differentials and equality, and the impact of the increase to the enterprise. “The National Union of Metal Workers of South Africa remains opposed to NMW in its current form and Cosatu has pointed out that it is far from solving the challenges of inequality, poverty and unemployment,” says Nicholson. “They have, however, said it is a good start.” Enterprises not regulated under a wage regulating measure, such as the mining industry, are indicating that they will be unable to afford the increase. This view confirms the concerns raised by trade unions and analysts – that the NMW may escalate the unemployment crisis. “The NMW could have a further negative impact on the decline of job losses in the SME market,” concludes Nicholson. “The mines have already said they can’t afford it and may be retrenching staff. It is approximately a R7 difference from the average of R13 minimum wage if one compares rates across different industries and for most organisations the rise will make a significant impact on the bottom line.” There is no clear-cut path through the minefield that the NMW has opened up, but one fact does shine out – millions of people could see a necessary shift in their quality of life. The issues must be addressed to ensure that there is engagement on the NMW across all levels of business and that there is proper support for its success. The long-term sustainability of South Africa depends on it. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, 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 South African Payroll Association (SAPA), in partnership with the South African Board for People Practices (SABPP), has launched the country’s first Payroll Standard. James McKerrell, Chairman of SAPA, will officially announce its implementation at a special SABPP conference to be held on October 26th.
Purpose Like the King IV Report on Corporate Governance, the Payroll Practice Standard strives to codify the requirements for good governance, focusing solely on the payroll function. “Until now,” says McKerrell, “neither employers nor payroll personnel had a concrete reference against which to measure the correctness of their systems and practices. The new standard provides just such a yardstick.” The specification complements the existing SAPA code of conduct. SAPA worked closely with SABPP, the professional body for HR practitioners in South Africa, to develop the document. “SABPP has extensive experience in creating HR standards so they were the ideal partner for this project,” reports McKerrell. The collaboration will also help SAPA establish the standard in HR structures as it will be included and referenced in SABPP’s own HR Standards framework. Overview The standard covers a broad range of requirements to which employers and payroll practitioners must adhere. These include:
Benefits McKerrell foresees that the standard will be eagerly accepted by payroll practitioners. “They are at times asked to take actions that are not conducive to good governance, or are legally or ethically problematic. With this definitive source, they can offer an authoritative response.” By referring to the standard, employers can satisfy themselves that their payroll department and processes comply with legal and governance requirements. It also gives them the ability to audit the payroll function more effectively. Implementation As with King IV, the Payroll Practice Standard is not legally binding. However, McKerrell believes it will see rapid adoption by both employers and practitioners. “Corruption is more easily exposed these days, leading society to call for greater accountability from leaders and business. When an organisation adopts and enforces a progressive standard like ours, they show they are serious about being a good corporate citizen. This is especially true of payroll, where workers’ rights are one of the public’s greatest concerns.” In addition, McKerrell says that SAPA will most likely make familiarity with the standard a requirement for attaining any of its professional designations and include it in its continuous professional development (CPD) programme. “As the profession’s official regulatory body, it is SAPA’s duty to encourage the highest level of professional conduct and service delivery. The Payroll Practice Standard embodies that ideal.” McKerrell looks forward to seeing employers and practitioners embrace the standard and invites them to contact SAPA for more information. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, 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 On April 1st this year, a new Unemployment Insurance Fund (UIF) scale of benefits came into effect as announced by the Minister of Labour in Government Gazette Notice No. 588. The limit for those claiming benefits was increased from R178,464 per annum to R212,539 per annum (or from R14,872 per month to R17,712 per month).
The cause of confusion In previous years, changes to UIF benefits and the value of contributions deducted from employees (and matched by employer contributions) were implemented on the same date, for the same value. So, many assumed that the increase in benefits limits should likewise be applied to contributions limits. But no formal statement to that effect had been issued. As a result, employers and payroll practitioners were uncertain about updating their payroll parameters. In May 2017, the South African Payroll Association (SAPA) published an article by one of its directors, Arlene Leggat, offering clarity. It explained that contributions and benefits are regulated by two separate laws. Contributions are governed by the Unemployment Insurance Contributions Act of 2002 and any changes must be announced by the Minister of Finance through the government gazette. Benefits, however, are regulated by the Unemployment Insurance Act of 2001 and the Minister of Labour must announce changes, also through the government gazette. Like SAPA, various commentators have addressed the issue. Sadly, the very bodies that should supply much needed answers have not only failed to do so but have compounded the problem. Making things worse Leggat refers to an infographic, issued by the UIF at the time of the increase, encouraging organisations to also increase their contribution ceilings. “Lately, we’ve see this erroneous document doing the rounds again, creating more confusion,” she notes. Worse still, it was recently reported that the Department of Labour’s own online U-filing service had applied the new threshold to its calculation for contributions. When asked why, the UIF explained it was an error that was being corrected. “It appears that even the Department of Labour employees are unsure,” observes Leggat. “This demonstrates a lack of communication that must be resolved at the highest level.” The effect of the problem In terms of Section 7(5) of the Unemployment Insurance Contributions Act of 2002, if an employer makes deductions in excess of the payment prescribed by the Act, they must return the amount to their employees even if they’re not refunded by the UIF. However, according to Section (7)(3)(c), if the employer fails to deduct the correct amount, they become liable for the contribution. “This puts employers in a catch-22 situation,” says Leggat. “For companies with hundreds or thousands of employees, it could become a major administrative problem.” The only solution “Our attempts to provide employers with logical answers have little effect if the Department of Labour is as confused as everyone else,” concludes Leggat. “The Minister of Labour, the Minister of Finance or the Unemployment Insurance Commissioner should make a public statement that instructs employers on how to proceed in no uncertain terms.” SAPA formally requests that such a statement be made and invites concerned parties to join its petition of the government to do so. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, 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 Employees whose income is garnished to pay outstanding debts can breathe easier thanks to new legislation that was recently enacted. On 31st July 2017, the State President signed into law the Courts of Law Amendment Act No. 7 of 2017. It amends the Magistrates’ Courts Act, 1944.
The result of a Constitutional Court ruling, the amendments offer greater protection to indebted persons against emolument attachment orders, the issuing and management of which have been poorly regulated in the past. The previous situation An emolument attachment order (EAO) is an order issued by a creditor on an indebted person’s employer, known as the “garnishee”. It compels them to deduct a specified amount from the defaulting worker’s income to pay the creditor. Previously, EAOs were authorised by the clerk of the court and could be easily obtained from almost any court, regardless of where the employee works or resides, and their ability to be present to defend themselves. Any number of creditors could demand such deductions be made, without well-defined limitations. “This lack of control gave credit providers extensive power to garnish workers’ salaries or wages with little consideration for their ability to survive or their constitutional right to justice,” says Arlene Leggat, a director of the South African Payroll Association (SAPA). “The new laws afford employees the opportunity to defend themselves and relieves the economic burden imposed on them.” Highlighted amendments Of greatest significance is that the law now imposes a limit on the amount that may be deducted, which can be no more than 25% of a worker’s salary or wages, regardless of the number of active EAOs against them. “Before, there was no limit,” says Leggat, “and I’ve personally seen workers go home penniless because their entire income was attached to debts. While everyone has a responsibility to pay their creditors, the situation was unsustainable.” It should be noted that the limit applies to basic income and excludes additional remuneration for overtime or other allowances. Further, authorisation of an EAO must be given by a magistrate - not the clerk of the court - at a court that has jurisdiction. Before approving the order, the magistrate must consider whether the order is just and equitable, taking into account various factors such as the size of the debt, alternatives to recover the debt, the worker’s income and their necessary expenses, existing EAOs, and more. Another protective mechanism is a clause that prohibits anyone from requiring a credit applicant to consent to a judgement, installment order or EAO prior to the granting of a loan. Those doing so may be fined or imprisoned for up to 3 years. The same penalty applies to anyone who fraudulently obtains or issues a judgement, installment order or EAO. Payroll’s duty Payroll practitioners should familiarise themselves with all the amendments of the new legislation. “It has a major impact on how they manage EAOs and their service to employees,” advises Leggat. “Employers who are legally obliged to enforce garnishment orders will also benefit from their administrator’s understanding of the law and how it can be applied to relieve their burden.” Payroll practitioners and employers are invited to contact SAPA for more details. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, 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 Author: Cathie Webb, Director, South African Payroll Association (SAPA)
Whenever a worker is retrenched in South Africa, it’s not just one person losing an income. That’s because employees in this country have a high number of dependents. For example, according to the South African Police Union, each 10111 call centre operator supports about 15 dependents. The statistics are probably similar for other industries. That’s why, before any organisation chooses retrenchments, they should do their best to find another way. Alternatives to retrenchment Here are some things businesses might consider, bearing in mind that changes in terms of service require their employee’s consent. • Reduction in work Rather than lose their jobs, employees may be open to working shorter weeks, fewer hours - like half days - or shorter shifts. This means they’ll have some form of income to tide them over, and it frees them up to look for a second job or even another position, making retrenchment unnecessary. • Reduced pay A small reduction in pay across the entire workforce won’t be as hard felt as losing one’s job altogether. Yes, it’s easier to retrench than renegotiate contracts throughout the company. But many have done it successfully. Conversely, freeze increases until the organisation’s fortunes recover. • Voluntary retrenchment Some workers are more desperate to keep their jobs than others, who may have been looking for a reason to move on. Voluntary retrenchment is also a good way of reinvigorating the workforce because those who are no longer aligned with the company’s mission or values are more likely to take the opportunity to leave. • Reduced benefits Although some benefits are required by law, others can often become bloated beyond their value in keeping workers happy and motivated. Reducing benefits gives a business the chance to rationalise their expenditure and, in tough times, employees are more likely to appreciate that necessity. • Redeployment This means either moving willing employees to other departments where their abilities are needed or training them to take on new duties, sometimes completely different to what they were doing in the past. Change is difficult but many workers are keen to extend their skills. • Eliminate overtime Workers are often paid overtime for working after hours or weekends. This need should drop with an ebb in business and companies can safely cancel overtime. However, employment contracts usually require staff to work after hours from time to time without pay, so some extra hours could fall under this clause. • Freeze new hires Rather than reducing the existing workforce, organisations can stop hiring new people. This isn’t always possible because new skills may be required to manage or execute new systems and processes. Again, employers should prefer to up-skill current staff. • Increased duties If a business has enough work but can’t fund the required workforce, the extra duties could be shared by current employees. It’s essential that employers alert them that this is an alternative to retrenchment and that their efforts are appreciated. • Placement assistance programmes Once, business journals lauded companies who helped place employees in new jobs as part of their retrenchment process. Does it still happen? Really, it should. Businesses have large customer, supplier and recruiter databases, as well as strong business networks. All it takes is a bulk email or a LinkedIn post to exponentially increase each retrenched worker’s opportunities. A note to employees There are many ways organisations can avoid retrenchment. That said, new technologies and improved business processes can also lead to positions being made redundant. Skills that were common 5 or 10 years ago may simply no longer be needed in the modern business environment. So, there’s another angle to consider - workers can avoid retrenchment by retraining themselves for jobs that are currently in demand. The unemployment rate in South Africa is one of the highest in the world and, with our current recession, it may get worse. At SAPA, we’re reaching out to employers to not just follow the law but to do their utmost to avoid retrenchments. Sometimes, there’s no other way. But if it’s an excuse to cut costs or improve shareholders’ dividends, this isn’t the right time for such thinking. So please, approach retrenchment responsibly. With the high number of dependents each employee must support, it’s not just one person who will go without. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, 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 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, idele@thatpoint.co.za, 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, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPA please visit: Website: www.sapayroll.co.za Twitter: @SAPayroll LinkedIn: The South African Payroll Association |
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