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Sage Reports On How Payroll Compliance Is To Come Under Scrutiny

Expect the South African Revenue Service (SARS) to clamp down on non-compliant business and personal taxpayers as government struggles to fill a large budget deficit says Rob Cooper, tax expert and Director of Legislation at Sage.





Ensure that your payroll is fully compliant with the laws and regulations around collection of PAYE, as government looks to plug revenue holes.

While you may have previously gotten away with non-compliance, whether unwittingly or otherwise, the law is tightening around payroll compliance and you need to be prepared. Government is focused on acquiring funding for infrastructure investment and social spending, but what does this mean for your business?

Related: How To Get The Most From Your Payroll Solution With The Sage Academy

Tax compliance ruled with a firmer hand


Accounting for more than a third of tax revenue, personal income tax is the single largest contributor to fiscal revenue. SARS has done a good job over the years of bringing employers into the tax net and catching those that don’t comply with the tax regulations and legislation.

Those few companies that are not in full compliance can expect to see the tax authority take an even more robust approach to enforcing compliance.

Timely and accurate submissions keep you in the clear

To remain compliant, businesses must ensure that they register all employees for tax, declare the correct earnings for all employees and include correct calculations of other earnings, deductions (such as PAYE and UIF), and contributions (such as retirement funding or UIF contributions) in their payroll. They must also make sure that annual returns are filed and submitted promptly and accurately.

The risks of getting it wrong include:

  • Censure
  • Interest or fines by authorities (SARS, department of labour, a labour court etc.)
  • Imprisonment in cases of fraud or extreme negligence.

What’s more, compliance is complicated by annual changes in payroll legislative requirements.

Automation solves compliance challenges

Because compliance is complex and the risks of non-compliance are high, even smaller South African businesses can no longer rely on spreadsheets and other manual methods to do their payroll calculations and file returns.

Automated solutions are becoming more essential for keeping reliable records and performing accurate payroll calculations.

Payroll automation software — with solutions available for businesses from start-ups to medium-sized companies and larger enterprises — takes care of calculating the complex formulas for the various deductions, generating compliance reports, and keeping accurate records.

Related: What Should I Know About Dealing With Tax When It Comes To My Business?

That makes it easier to perform accurate calculations, file submissions on time and generate reports and electronic payslips.

Eliminate manual paperwork

Payroll software takes the pain out of compliance, allowing you to focus your energy on strategy, customers, and employee engagement rather than on red-tape.

While mistakes in record keeping and compliance can result in punitive penalties and hurt the company’s brand, an efficient payroll system enhances staff morale, helps to reduce the risks of fraud, and boosts an organisation’s reputation.

It is a worthwhile investment in the business and a foundational element of good governance and sound financial control.

Sage specialises in accounting and business management software development aimed at small and medium sized business, although we do offer expertise and business solutions for larger businesses. Over the past twenty years Sage has become a local leader in business software solutions backed by the strength of the global Sage brand.


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Reimagine The Use Of Technology

The phenomenon of ‘big data’ is rapidly catching up with the world of tax.






As tax professionals we live in a new reality, fueled by the blinding pace of change. The digital revolution is here. Reimagine the future of the tax function through the lens of analytics.

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Enter The 2018 Entrepreneur Of The Year® Competition To Win Prizes Over R2 Million

The Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS aims to honour, benefit and uplift South African SMEs. Now in its 30th year, the competition celebrates excellence in entrepreneurship, serving as an inspiration to others to succeed in the world of business.




Amid the current political optimism, entrepreneurs should be especially inspired by the continued commitment to SME support which emerged as a consistent theme in both the 2018 State of the Nation Address and the National Budget Speech.

This is according to Christo Botes, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, who believes that this continued focus evidences Government’s recognition of the vital role played by entrepreneurs in enabling economic growth.

Continued celebration of excellence in entrepreneurship

Speaking in light of the launch of the 2018 competition in Johannesburg today, Botes says that this long-deserved recognition of the SME sector only further validates the competition’s unwavering commitment to celebrating excellence in entrepreneurship and fostering future economic growth.

“Now in our 30th year, this renowned competition continues to pay homage to the fearless South African entrepreneurs who dedicate themselves to their enterprises and businesses: driving growth, combatting unemployment and contributing towards the country’s economic development.”

“It is therefore wonderful to see the public sector taking the required steps to improving the environment in which these entrepreneurs operate in order to promote further growth in the sector.”

Related: Meet The 2017 Entrepreneur Of The Year® Winners

Botes, who is also executive director at Business Partners Limited (BUSINESS/PARTNERS) has been involved in the competition since its inception in 1988, “Looking back over the last 30 years, this competition has evolved from an internal competition that recognized BUSINESS/PARTNERS’ clients only, to a nation-wide search for outstanding South African-based entrepreneurs, with Sanlam as our valued partner.”

Rewards for successful local business owners

He says that the competition continues to reward successful local business owners for the valuable contributions they make to grow their local communities and economies, and aims to inspire others to do the same. “As our 30th- anniversary year, we’re hoping to see even more entrepreneurs enter.

The competition is open to all South African-based businesses and prizes are awarded for the following categories: Overall Entrepreneur of the Year®, Emerging Business Entrepreneur of the Year®, Small Business Entrepreneur of the Year®, Medium Business Entrepreneur of the Year®, Job Creator of the Year and Innovator of the Year,” says Botes.

Botes adds that this year, the 2018 competition will also recognize a South African entrepreneur for a Lifetime Achievement award.

Related: 4 Success Lessons From The Entrepreneur Who Quietly Grew Pinterest Into A $12 Billion Company

“The purpose of this specially nominated award is to recognize an entrepreneur who has made a significant contribution to the South Africa economy and has grown their business from start-up to large-scale, perhaps even multi-national corporation. We want to reward the individuals who have dedicated their lives to building our economy and inspiring others to do the same.”

What the winners can expect

The 2018 Entrepreneur of the Year® competition, sponsored by Sanlam and BUSINESS/PARTNERS, offers prizes valued at over R 2 million, which includes cash prizes of R 70 000 for each main category winner, and R200 000 for the overall winner.

Competition winners will also receive valuable mentorship support, networking opportunities and national media exposure.

Botes says that in celebrating 30 years of searching for entrepreneurial talent in all sectors of the economy, the competition remains fiercely committed to its cause in 2018.

What the judges are looking for?

“The judges are looking for entrepreneurs that have succeeded against the odds, either by carving out a niche market for their product or service offering, or by succeeding in a very competitive environment. Perseverance and endurance, innovation and agility are some of the qualities we look for in the entrepreneur.”

Botes adds that there are also a number of quantitative competition measures, such as turnover growth, profitability, owners’ equity growth, positive cash flows and job creation that play a part in the competition’s judging process.

Entrepreneurs are encouraged to enter the competition and can do so by downloading the entry form online at They can also interact with fellow entrepreneurs, past winners and entrants on the competition’s social media platforms and The closing date for the competition is 31 May 2018.

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Company Posts

This Podcast Interview Will Inspire Every Business Women On International Woman’s Day

Fumani Mthembi and Teresa Oakley-Smith, both MDs and founders of their own successful businesses, share their personal stories of fighting gender and racial stereotypes in pursuit of a dream. Mthembi and Oakley-Smith, spoke at an Investec Women in Leadership event, entitled, “The Courage to Change.” We bring you this inspirational podcast.

Investec Specialist Bank and Asset Management




International Women’s Day highlights the imperative role women play in business, the economy and households. Whilst women have come a long way in terms of recognising their worth, we’ve got a long way to go – and that starts in the boardroom. According to an EY study, there is overwhelming evidence that links gender parity to innovation and improved financial performance.

Businesses with women in top management roles experienced an increase in “innovation intensity” and were worth, on average, about US$40m more than companies with only male leaders. Yet on average, in SA, women earn about 73% of what men earn. (Ipsos 2017 survey)

In a frank and honest chat with Investec, two inspirational female leaders, Fumani Mthembi and Teresa Oakley-Smith, share their extraordinary business journey from having “a big dream” to surviving through the mean and lean times.

Fumani Mthembi, is a founding member of the Pele Energy Group – South Africa’s largest 100% black-owned independent power production and development firm – and MD of its research and development subsidiary, Knowledge Pele (KP), and Teresa Oakley-Smith, is the founder of Diversi-T, a change management consultancy with a focus on transformation and diversity training.

Listen to the podcast below for the full interview.

Here are some of the stand-out highlights from the interview:

1. Overcoming challenges female entrepreneurs face

Both Fumani and Teresa believe that, based on their respective experiences, men don’t take women seriously.

iwd_teresa_fumani_article-image-option-2“It’s very common in my industry to attend a meeting and have all the men address each other and not you,” says Fumani.“So I’ll be sitting there and they’ll all have their backs turned and they’ll be having a conversation amongst themselves.”

“I’ve had to work twice or three times as hard as male competitors to gain a contract; I’ve had to bend over backwards to actually make sure that my delivery is ten times better,” says Teresa.

2. Breaking down stereotypes

“In households of dual income, often the woman is bringing in more than the man, yet when we have to approach institutions of power, we feel somehow belittled, or we somehow lack our courage in an appreciation of the power we actually hold,” says Teresa.

Related: Feel Like Quitting? These 9 Women Prove Grit Can Lead You To Massive Success

“One of my clients is a very large retail company and they only have one woman out of a board of 40, and I was challenging them by saying: Who does the shopping? Women hold the purse strings, women go to the supermarkets, so why are they not represented? Why are their voices not heard?”

3. Encouraging diversity in the workplace

Teresa work centres around helping employers create work environments that encourage intersectionality, and recognise women’s unique needs.

“Does your company provide proper facilities for breastfeeding women and supply feminine hygiene products in case a female staff member is in need?” asks Teresa.


4. Educating about the need for empowerment

Fumani’s aim when starting her company was to transform society through knowledge and power and make a difference through a legacy that creates a new kind of context in which people like herself – a young, black female entrepreneur – could operate. “We wanted to spread the justice dividend and to use our privilege responsibly,” she says.

In her experience, banks struggle to recognise the need for women to seek finance for start-ups, because “they don’t need to take on that kind of risk. And that’s the thing about this dual economy, and as women we represent that second economy,” she says

“We’re a new risk; the things we want to do in this economy are new. Everything we do and present is new and we can be disruptive. So while we can ask for change, we can also be the change, and we can create these institutions that really understand us.”

 5. Seizing the power within you

Both women agree that recognising the challenge of being a woman in South Africa, should lead to women standing together and reclaiming their power. “We can only own our power if we join together as women of all races, ages and abilities and understand each other,” says Teresa.

Related: A Great Time To Be A Woman In Business

Out of Fumani’s 25-strong staff complement, only five employees are men. She puts that down to the talent and intellect shown by her women employees. But this female-male mix is far from the norm. Why? “What I’ve often seen is that women are very risk averse they’re incredibly bright.

We just don’t want to take a bet on ourselves,” says Fumani. “All these institutions are growing on the back women’s efforts. There’s a reason why 54% of graduate are women – we can do it, it’s just a matter of taking that chance on yourself.”

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