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The 2013 Sage Business Index (SBI) survey globally interviewed more than 11 000 SME business decision-makers, revealing that SMEs generally agree that excessive Government bureaucracy and legislation top the list of the least favourable aspects of doing business.

“Regular statutory and legislative changes in the payroll and HR industry present a challenge for small businesses in terms of compliance with the six major Payroll Acts. Manual systems or formulae-driven worksheets often lead to incorrect calculations and deductions which can result in SARS penalties,” says Laurica Kok, GM at payroll software solutions provider Sage Pastel Payroll & HR.

“It is a daunting challenge for SME businesses to keep pace with regular legislative updates. However, automated payroll software ensures that the essential updates are automatically implemented and that payslip calculations are correct, meeting the latest legislative requirements,” adds Kok.

To help overcome this challenge, Kok says Sage Pastel Payroll & HR interprets legislative changes for start-up and small businesses and ensures that they remain compliant via payroll and HR software.

RSS feeds provide information on and notification of legislative and tax changes as well delivering new system functionality releases that ensure companies always process their payrolls on the latest software version.

SMEs generally agree that excessive Government bureaucracy and Government handling of the country’s current economic challenges still top the list of the least favourable aspects of doing business.

The SBI established that globally business confidence is improving but in South Africa managing cash flow is the biggest challenge for growing businesses with government not helping as there remain 4,7-million unemployed, a lack of basic skills and protection of employed people while SME businesses battle with wage and payroll legislation.

Recognising the pressures on SME business in the current difficult economy, payroll and HR software specialist Sage Pastel Payroll & HR has introduced a payroll and HR software solution that businesses can obtain on an affordable subscription monthly payment plan.

SME business contributes significantly to the economic growth in South Africa so there is a need to harness entrepreneurial businesses and ensure that they succeed.

According to the SBI survey, South Africa is generally downbeat about local economic prospects with a low score of 44,10%, which is on a par with the UK and US at 40,65% and 41,53% respectively.

Mobility provides start-up businesses with agility and seeing as the owners are invariably busy managing many aspects of their business, Kok says Sage Pastel My Payroll Online is a lucrative online payroll solution for start-up companies. Online payroll solutions can be obtained on a ‘pay-as-you-go’ basis whereby businesses only pay when they use the system.

“It is important to provide South African companies with more than just a box of software,” says Sumay Dippenaar, marketing manager at Sage Pastel Payroll & HR.

Telephone and e-mail support services can assist users with payroll, legislation and process enquiries.

“Businesses should opt for a payroll provider that offers a national footprint of certified payroll software installers to ensure they benefit from professional installation of their payroll and HR software solutions.”