Keeping up with compliance: How to avoid falling foul of regulators

Ian McAlister, general manager at CRS

Regulatory bodies such as Sars do not accept ignorance as an excuse for non-compliance, and the onus is on business owners to ensure they fulfil their legal and regulatory obligations, says Ian McAlister, general manager at payroll and HR solutions and services provider CRS. However, by strategically investing in technology and leveraging the expertise of payroll and HR specialists, companies can create a compliant, thriving workplace.

Invest in robust payroll and HR systems

Technology plays a pivotal role in maintaining compliance. “Modern payroll and HR systems are equipped with features specifically designed to manage complex regulatory requirements, from automatic tax calculations to detailed audit trails,” McAlister explains.

“These systems not only reduce the risk of human error but also provide real-time updates on compliance changes, ensuring that companies remain aligned with the latest regulations.”

Payroll and HR software also helps companies maintain accurate employee records, manage leave and overtime in accordance with legal requirements, and ensure that all statutory contributions are correctly calculated and paid on time.

Additionally, data security and privacy features help companies comply with data protection laws such as South Africa’s Protection of Personal Information Act and the General Data Protection Regulation in Europe.

“In an era where regulatory landscapes are constantly evolving, having robust payroll and HR software is not just a convenience – it’s a critical component of a company's compliance strategy,” McAlister asserts.

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Leverage expert guidance

But even with the best technology systems in place, navigating the complexity of payroll and HR regulations can still be challenging. This is where a payroll and HR consultant can provide invaluable expertise.

As McAlister points out, these experts help build a resilient compliance framework that extends beyond the payroll and HR departments and becomes a core part of the company culture.

“It’s also critical that management leads by example, emphasising the importance of adhering to regulations and instilling this mindset throughout the organisation,” he adds.

By integrating compliance into day-to-day operations, the service provider helps employees understand that it’s not a separate function but a core aspect of their daily work. Clear communication about compliance requirements, company policies and changes in regulations is crucial to ensuring that everyone knows what is expected of them. Payroll and HR teams, in particular, benefit from this approach, as it equips them to implement changes effectively.

Additionally, the provision of user-friendly compliance tools and resources – such as automated alerts for critical deadlines and easy access to the latest regulatory updates – simplifies adherence to regulations. Proactive audits further support this effort by identifying and addressing compliance gaps before they escalate into penalties.

“As payroll and HR regulations continue to grow more complex, the risk of penalties can easily pull employers away from what matters most. By embracing compliance proactively and tapping into expert outsourced support, companies can confidently navigate the changing regulatory environment and position themselves as trusted, responsible employers in their industry,” McAlister concludes.

To start building a culture of compliance, companies should evaluate their current payroll and HR systems to identify gaps and consider consulting with experts to strengthen their compliance strategies. By taking these steps, businesses not only protect themselves from penalties but also foster a trustworthy, efficient workplace where compliance is second nature.