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FAQ Hub
Your questions, answered
We’ve gathered answers to all your burning questions about payroll and HR. Whether you're a business owner, payroll professional or HR practitioner, you'll find the information you need right here.
Questions about payroll and HR software
What are the benefits of cloud-based payroll and HR?
There’s no one-size-fits-all when it comes to cloud computing. Companies that are considering moving their payroll and HR systems to the cloud have three deployment models from which to choose – private, public or hybrid – and each one provides different capabilities.
The model you choose for your HR and payroll system will depend on your specific business requirements and the evolving technology needs of the organisation.
- The public cloud delivers accessible computing resources over the public internet, but poses risks for sensitive payroll and HR data due to potential downtime or security breaches, which could severely impact business operations.
- The private cloud model is a secure infrastructure exclusively used by a single business. Traditionally hosted on the organisation’s own hardware at its data centre, some companies choose to locate their private cloud offsite.
- The hybrid cloud combines public and private clouds, allowing companies to use the public cloud’s flexibility for non-sensitive tasks, while keeping critical applications and data on-premise, accessible only to the organisation’s users.
Why should my business invest in a payroll solution?
It’s not uncommon for payroll administrators to rely on Excel spreadsheets and laborious manual processes to perform specific tasks, simply because their payroll solution lacks the requisite functionality. But besides managing salaries and employee benefits, payroll is also responsible for legislative compliance. A digital payroll system automates the payroll process, making it secure and legislatively compliant, while ensuring a seamless experience for employees.
What should I look for in a payroll solution?
A payroll solution is on-premise, cloud-based or hybrid software that automates all activities pertaining to employees’ remuneration and benefits. It also helps companies ensure they are compliant with tax legislation, thereby alleviating risk and reducing costs. When it comes to finding the best payroll solution for your business, companies should look for a system that will save time, reduce costs and facilitate investment in engaged employees. A proven, legislatively compliant and comprehensively supported payroll solution is the first step to achieving this objective.
Why is legislative compliance important in payroll?
Managing payroll is complex, and the list of regulations and submissions your business must comply with is a long one. One mistake could cost you a substantial amount in interest, fines and penalties, not only from the South African Revenue Service (SARS), but also the Department of Employment and Labour.
What are the challenges of global payroll?
Expanding your company’s presence to different countries also means having to consider different languages, time zones and cultures, all of which impact the organisation’s global payroll in one way or another and can become a minefield to navigate if not managed correctly. Issues of compliance, compensation and data security for each country of operation also need to be considered.
What is human capital management?
Human capital management is a set of practices related to the HR function. In other words, the management of a company’s employees across the entire employee lifecycle. This includes recruitment and selection, onboarding, employee development, retention, performance management and transition (resignation, retirement, retrenchment or dismissal).
What are the must-have features of HR software?
When choosing an HR solution, it’s crucial to identify your business requirements and objectives, such as automating routine tasks, enhancing communication in remote or hybrid workplaces, empowering employees to manage their personal information, and generating data-driven reports for decision-making. Additionally, ensure the solution integrates well with your existing tools, is scalable for future growth, and is user-friendly with minimal training required.
Why should your payroll include an ESS system?
An ESS (employee self-service) system enables employees to carry out various functions on their own, such as view and download payslips, access their payroll history, and upload payroll and benefits documents, all of which saves valuable time for the payroll department. Hours that would have been spent capturing and updating employee information can now be spent on improving the working environment and reducing staff-related costs.
What’s the difference between ESS and MSS?
Employee self-service (ESS) is a web-based system that enables employees to interact quickly and easily with the various human resource and finance solutions in their organisation. Employees can, for example, view and download payslips, apply for leave and update their personal information. The ESS system can be accessed from any location, on any device.
Manager self-service (MSS) is specifically geared to manager activities. Mid-level managers log in securely to their individual accounts, which gives them immediate access to their employee information and thus enables them to prioritise and complete tasks and functions applicable to their employees.
Just as ESS empowers employees to perform various functions on their own, MSS systems empower managers to make informed decisions related to their employees.
What are the benefits of using performance management software
Using performance management software offers several benefits, including streamlined goal setting and performance reviews, which improve clarity and alignment across the organisation. It enhances communication by providing a centralised platform for ongoing feedback and employee development, leading to more effective performance tracking and continuous improvement. Additionally, the software enables data-driven insights, helping managers identify trends, address issues promptly and make informed decisions to boost productivity and employee engagement.
Which legislation applies to payroll in South Africa?
No fewer than ten acts regulate the employer-employee relationship in South Africa, and each one incorporates specific rules for payroll. These are:
- Companies Act
- Basic Conditions of Employment Act
- Labour Relations Act
- Income Tax Act
- Skills Development Act
- Unemployment Insurance Act
- Compensation for Occupational Injuries and Diseases Act
- Workman’s Compensation Act
- Employment Equity Act
- Protection of Personal Information Act
Is a locally developed payroll and HR solution better for South African small businesses?
There are four main reasons why South African companies should strongly consider a locally developed human resources and payroll system rather than an international solution:
- Complex South African payroll legislation
- Localisation to unique South African conditions
- Prioritised customisation
- Flexibility supports global expansion
What is a global payroll system?
Just as payroll processing is defined as the process of paying the employees who work for a company, so a global payroll system manages the salaries and benefits of employees across multiple countries. Having a reliable, integrated payroll system that can manage payroll for globally located employees from a single platform is critical for international companies. Cloud technology plays a pivotal role in global payroll systems, enabling international companies to work with one solution or service provider that takes care of the entire organisation’s payroll needs.
What are the benefits of a global payroll system?
An effective global payroll system enables your organisation to:
- Quickly and easily expand to new international markets;
- Hire new staff worldwide;
- Reduce the risks associated with non-compliance of local legislation and regulations;
- Enhance data accuracy, reliability and accessibility;
- Ensure data security;
- Keep accurate track of global processes within the organisation;
- Ensure employees get paid accurately and on time, wherever in the world they are located;
- Create a positive company experience for all employees, in each country of operation;
- Enhance employee retention.
What does payroll global localisation mean?
Global localisation or ‘glocalisation’ can be defined as the global distribution of a product and/or service which has been adapted to suit the specific requirements of the various local markets in which it is offered. When it comes to payroll and HR software, this means tailoring the solution to align with each country’s labour and compliance legislation and regulations.
Why should I invest in an HR solution for my company?
An HR solution automates and streamlines processes around the management of employees, thus simplifying administration while generating meaningful information for decision-making. It is also designed to ensure labour legislation compliance.
What is employee self-service (ESS)?
Employee self-service (ESS) is a web-based system that enables employees to interact quickly and easily with the various HR and finance solutions in their organisation. Employees can, for example, view and download payslips, apply for leave and update their personal information. The ESS system can be accessed from any location, on any device.
What are the most important features of an ESS system?
ESS systems are specifically geared to automating important human resource and payroll tasks, but selecting an employee self-service system is not a five-minute exercise. Although they come with an extensive range of features and functions, not all are necessarily suitable for your organisation. Functionality such as accessibility, a user-friendly interface and the protection of data contained in the system are critical. If you have an ESS system with the correct capabilities, the benefits will quickly permeate throughout the business.
What is performance management software?
Performance management software is a tool designed to help organisations track, evaluate and improve employee performance. It streamlines processes like goal setting, performance reviews, feedback collection and employee development planning. By providing a centralised platform, this software enables managers to monitor progress, identify areas for improvement, and align individual performance with broader business objectives, ultimately driving productivity and employee engagement.
Questions about outsourced services
What is meant by payroll outsourcing?
Outsourced payroll services give you access to a professional team of experts with specialised skills. Fully managed payroll services are specifically geared to optimising the payroll function so that your business can save money. This is particularly beneficial for multinational organisations that have a presence in different countries. A payroll services provider frees human resources, payroll and/or finance personnel from the administrative and legislative burden of managing payroll so that they can focus on tasks that are of more strategic importance to the organisation.
What do payroll services include?
A dedicated payroll services provider is experienced in all the best practices required to manage an organisation’s payroll accurately and efficiently, including across international borders, and will reduce the risk associated with non-compliance. Regardless of the size of the business, handing over the management of the payroll function to a payroll services provider presents a massive opportunity to improve profitability and catalyse growth in the organisation.
What are the advantages of using outsourced payroll services?
Managing payroll is a time-consuming, complicated task that involves more than just paying employees. There are numerous legal requirements to comply with, which means the risk of making mistakes is high. Additionally, as your company grows, so does the expense of managing your payroll in-house. The cost of calculating salaries, printing payslips, keeping up with legislation, maintaining software and ensuring your data is secure can quickly escalate out of control. Fully managed payroll services are specifically geared to optimising the payroll function so that your business can save money. Consequently, businesses are increasingly outsourcing their payroll function to improve efficiency, reduce operating expenses and alleviate risk. Regardless of the size of their organisation, all employers want their employees to be paid accurately and on time, every time. This enhances employees’ trust in the company, improves job satisfaction and drives a positive culture within the organisation.
How do I find a good payroll services provider?
While there are several qualities to consider when choosing a payroll services provider, certain attributes should be at the top of your list:
- Accuracy: Make sure your chosen payroll services provider has the credentials to guarantee that your workforce will be paid accurately and on time, every time.
- Legislative compliance: Payroll legislation and regulations are not only extremely complex, but also change frequently. Your chosen payroll services provider should have the resources to stay up to date with each change as it happens.
- Security: The payroll services provider must understand the importance of data security, and be able to manage and process your sensitive information securely to prevent it from being compromised.
- Customised services: Select a payroll services provider that offers a comprehensive range of services that are customisable to your specific business needs, and can be adapted as your company grows.
- Reputation: One of the best indicators of a payroll service provider’s reliability and track record in the industry is how long it retains its clients. A long-standing relationship is a sure sign of a company with a tried-and-tested operating history that can deliver on its promises.
What does an EOR do?
The EOR and its client each have different responsibilities. The EOR is liable for employment issues such as payroll, tax, labour, social security and all other employment-related statutory compliance. The company where the employee works retains control over business operations, managing employees’ day-to-day tasks, and the approval of remuneration and leave.
What is the difference between an employer of record and a professional employer organisation?
An employer of record (EOR) and a professional employer organisation (PEO) both assist companies with payroll and HR functions, but they differ in scope and responsibility. An EOR becomes the legal employer for tax purposes and handles compliance, payroll and benefits administration, typically for companies expanding into new countries or hiring remote workers. In contrast, a PEO co-employs the workforce, sharing responsibilities with the client company, but the company retains more control over day-to-day management while the PEO handles HR, payroll and compliance support.
What is HR outsourcing?
Not every company – especially smaller to medium-sized businesses – has the resources to set up and run a fully-fledged HR division. Consequently, they look to an outsourced HR services provider to manage their human resources function. Many business prefer to use outsourced HR services because their HR function is too complex to manage in-house. In this way they are assured that all their employees’ needs are taken care of efficiently and professionally.
What does an HR services provider do?
Outsourced HR services give you access to a professional team of experts with specialised skills. Depending on your organisation’s business needs, an outsourced HR services provider will proactively manage one or all aspects of your HR function, from onboarding new employees and administering their compensation and benefits, to managing their training and development and a whole lot more.
What are the benefits of using outsourced HR services?
Human resources is a multifaceted function that involves onboarding new employees, administering their compensation and benefits, managing their training and development and a whole lot more. As your business expands, the change in processes that usually accompanies this growth can cause uncertainty among your employees. As you focus your attention on enhancing production and operations efficiencies, it’s just as important to ensure that your HR processes do not fall by the wayside. Partnering with an HR services provider offers a host of benefits, including cost savings, legislative compliance, an engaged workforce, better talent recruitment and improved employee performance. Additionally, it frees up valuable time to focus on core business activities.
What is an employer of record (EOR)?
An EOR is a global employment services provider that helps companies legally employ people in other countries. The EOR does this by hiring the employees on the company’s behalf. By taking care of payroll, HR, benefits, taxes and local compliance, an EOR frees the company to focus on its core business.
What are the benefits of using an EOR?
By making use of an EOR a company can expand its operations into another country without having to set up a local entity, which can be expensive and take several months to accomplish. Working with an EOR allows businesses to employ and pay workers in other countries quickly and affordably.
Other benefits of using an EOR include:
- Save on company tax
- Save on local infrastructure
- No local company registration or red tape
- Tap into a team of global legislation experts
Questions about CRS, Payroll, HR and more
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