Payroll Franchise Opportunity Trends to Follow in South Africa
Ongoing strikes, company restructuring and changing tax legislation are all factors contributing to the challenges that South African firms face when dealing with payroll management. Labour laws are changing and technology advances extremely fast. With such, companies need to stay competitive and this means having to streamline their payroll management functions. Accountants and tax consultants become all the more important in this scenario and taking hold of a payroll franchise opportunity as offered by The Tax Shop is the answer to ensure ongoing business based on the need for innovative and turn-key payroll solutions.
Some of the main trends in payroll and HR for 2015/16, which also drive more companies to seek help from professionals in the form of outsourcing, are briefly discussed below.
Meeting Compliance Requirements
With regular tax legislation changes, including changes to the annual tax tables, companies have the ongoing challenge of staying up to date with legislation and ensuring that their payroll management processes are in line with legal requirements. Smaller companies struggle tremendously to keep up with changes and to adapt their systems accordingly. Non-compliance means penalties, fines and even prosecution. These companies need experts on their side to take over the payroll responsibilities to help them focus on their business at hand rather than tax issues, calculations, on-time salary payments, and payslips, providing for the perfect payroll franchise opportunity for tax consultants and accountants to fill the gap.
It is not unusual to read about companies losing thousands of Rands because of payroll fraud. An increasing number of firms are now making use of forensic experts to find the source of fraud at their firms. Employees, even if well-paid, also struggle to deal with rising living costs and many have debts that they cannot pay. Being desperate, persons in responsible positions are often tempted to steal and sometimes get away with such for years. Such fraud, however, costs the firms money, integrity and also places them at risk of non-compliance. Automation of the payroll system is one solution and another is to outsource to an external professional company. As such, more and more companies are looking for ways to minimise the risk of internal payroll fraud and one solution is to outsource to expert companies, which is why accountants and tax consultants benefit from available payroll franchise opportunities in South Africa.
Real Time Access
Companies are looking at ways to provide their employees with platforms where they can review their salary history and update their details to ensure accuracy on payslips. Outsourcing the payroll function to expert companies that offer online platforms seems to be the going trend. Where the service provider is able to ensure better, but more secure access to salary information and real-time updating it gains a distinct competitive advantage over firms not able to bring their clients into the 21st Century way of doing things. Cloud is an effective way to reduce storage requirements, ensure backups and improve accessibility. The cloud option is expected to become the norm in future, as it allows employees on the move the ability to update information, submit leave applications, and review salary histories from their cellphones.
Better Usage of Human Resources
Outsourcing the payroll function doesn’t mean that companies are doing away with their HR departments. These stay operational, but are more streamlined. Cost savings in terms of personnel are one of the main reasons for outsourcing part of or the entire payroll function. Automation of repetitive tasks and not having to run large departments to manage the function are reasons why so many companies now outsource the function.
Why Payroll Franchises are on the Increase
With HR management being one of the largest expenses of running a business, it has become essential for firms to look at ways they can cut costs. Back-office tasks such as payroll management don’t add to their profit margin. They are thus looking for better alternatives and there is a gap in the market to be filled.
The Tax Shop offers payroll franchise opportunity solutions for professionals wanting to fill the above mentioned gap. With a trusted brand name, ongoing support, superb training and an equally impressive service profile, The Tax Shop is the ideal franchise family. By joining you can offer much needed and in-demand services such as payroll management including functions such as payslip generation, monthly payroll reports, submission of PAYE returns, and online payroll solutions.