Acumen International stands with Ukraine and the country's people. Join us

Employ Candidates Compliantly in South Africa

Get Express Quote
  1. Overview: South Africa
  2. Expand without a company set up
  3. Global PEO and payroll
  4. Global HR Compliance
  5. Work permit for hiring expats via PEO
  6. Contractor vs. employee: which is better?
  7. Global Payroll Calculator
Other counrtries

Global PEO and Payroll in South Africa (RSA)

If you are considering entering a new market, it’s critical to consider the unique challenges faced in each country. Not every expansion is equally tricky, but navigating global markets will always require rigorous due diligence. As with any expansion, consider the laws, activities of your company, goals, and risk tolerance levels before moving forward. This will likely include utilizing global PEO and payroll solution in South Africa (officially the Republic of South Africa or RSA), to help reduce risks and costs.

What is a Global PEO (Professional Employment Organization)?

If you’re looking for a way to outsource some of the more tedious aspects of running a business, then a Professional Employment Organization, or PEO, may be right. A PEO can serve as a liaison between your company and its employees, assuming responsibility for HR-related functions such as payroll, taxes, and benefits administration. A global PEO can be a valuable partner in helping your business succeed. Partnering with a PEO can free up your time and energy to focus on more strategic goals, like growing your business.

Ready to get started? Request a quote!

Get Express Quote

Why Use a Global PEO?

Expanding your business globally can be risky, but by partnering with a global PEO, you can stay flexible and mitigate major global expansion risks. This allows your business to enter new markets securely and efficiently while knowing there is always an exit strategy available if needed.

With a global PEO partner, you can test the waters before making a permanent commitment. Before you decide to invest in offices, equipment, and employee training at an overseas location, you’ll get valuable information about whether the location will be successful by seeing how well operations are received via a third party before committing to managing them yourself.

In addition to helping with taxes and payroll, global PEO and payroll provider can also help handle things like relocation, providing temporary housing and support while you find a permanent location for your employees to live.

What Services Does a Global PEO (Professional Employment Organization) Provide in South Africa?

  1. Global Payroll management;
  2. Compliance with local tax rules (file & deposit) of the country where the EOR company is located;
  3. Handling compliant employment contracts: 
  4. Background, education, and other checks; 
  5. Onboarding and termination processes, as well as employee’s compensation;
  6. Arranging visas and work permits for employees;
  7. Ensuring the working process is organized under local labor laws;
  8. Processing workers’ medical insurance and other benefits (day-offs, bonuses, and more);
  9. Global employment process maps, matter maps, employment guides, and other documentation.

Get Express Quote

Difference between a Global EOR and a PEO. Employment Risk Mitigation Strategy

When expanding your business into new countries, there are many benefits to using a global PEO (Professional Employment Organization) or EOR (Employer of Record). A global PEO or an EOR is an alternative to hiring your employees via an in-country legal entity. Instead of hiring your employees, you contract with a global employment solutions provider to hire and manage them for you.

A Global PEO and EOR Partners can handle all the immigration, hiring, payroll, tax, and HR compliance for you, freeing up your time to focus on other aspects of running your business. And if you ever need to leave the country, you can do so without being tied down by any long-term commitments. 

However, both global PEOs and EORs work differently. So, it’s important to understand the differences between the two, so you can find the right one for your needs.

The main difference between a global EOR and a PEO is how they hire the workers. A global PEO assigns employees to the client company for employment so that it can replace the clients in their duties of hiring and managing the employees. The PEO is not a direct employer on paper. An EOR, on the other hand, is an employer of record in the country of business. They hire and terminate employees on behalf of the client company.

PEO EOR
Employment Model Co-employer Sole Employer
Key Services Global employment, payroll, benefits, immigration (visa, work permits), mobility Global employment, payroll, benefits, immigration (visa, work permits), mobility
Local Entity Establishment Required Optional
Liability Shares responsibilities and liabilities Assumes all responsibilities and liabilities
Legal Advice Optional Required
Global Labour & HR Compliance Optional Required

Acumen International – Your Single Point of Truth and Global Employment PEO and Payroll Solution Provider in South Africa

  1. 100 % compliant, quick, easy market entry. Acumen Global PEO is your local legal entity, helping you reduce the cost and time associated with incorporating.
  2. Immediate global employment service coverage in 190 countries
  3. Both a single point of contact and a dedicated account manager for your project for all target countries.
  4. Compliant and secure global employment operations. We help you adhere to all local laws and regulations in 190 countries
  5. A single contract for all in-country services (employment, immigration, legal, etc.)
  6. A single PEO provider assumes full responsibility for your international employees in multiple countries
  7. Payments are made within the UK or to the UK bank company account
  8. Fully compliant with standardized procedures and reporting systems
  9. You can delegate to Acumen Global PEO all HR responsibilities Payroll & benefits administration, background checks, and HR helpdesk
  10. Standard payroll breakdowns for all target countries
  11. As soon as we receive your request for a project in any country, we will send you a payroll breakdown and offer within 2 working hours
  12. Full 100% fee money-back guarantee for the employee or contractor payment delays
  13. Tailored and 100% compliant employment contract drafts
  14. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions
  15. Acumen Global PEO protects your company’s Intellectual Property rights

What Makes Acumen International’s Global PEO and Payroll different?

Our Global PEO&Payroll Client
Employment risks mitigation
Tax compliance & payroll processing
Incorporation costs no need for own
entities
Effort 90% 10%
Coverage 190 countries 190 countries

Get Express Quote

How Much Does a Global PEO Charge?

Payroll taxes and service fees can be a big burden for employers. Many companies choose to use a Global PEO (Professional Employer Organization) to help with these costs. PEOs typically charge a percentage of the total payroll, including employee insurance fees. It can be difficult to determine the actual costs for these services, especially when some employer taxes are only paid on wages up to a certain threshold.

Single Global Service Agreement

A global PEO can cover all your international projects within a single contract and add new employees and services as you expand your global workforce in the new countries.

No Required Minimums

We accept projects of any length, with any number of employees.

Flexible Pricing

Whether you need to scale up or down, we adjust your pricing based on the project employee number.

End-to-end Global Employment Solution

We manage all your global services, including employment, recruitment, immigration, legal and global HR consulting, saving you valuable time. And Acumen International covers the cost and saves you the effort of finding and selecting local employment-related service providers.

A Global PEO Can Help You Replace Numerous Vendors

When it comes to managing the employment side of your business, there are many options available to get the help you need. an ever-growing number of vendors can assist you with various aspects of your human resource services, including payroll, employee benefits, and more.

Working with a professional employer organization (PEO) is a great way to get all the help you need in one place. PEOs can manage all of your employment-related needs, from taxes and retirement plans to background checks and employee discounts.

Partnering with a PEO and payroll provider saves you time and hassle by consolidating all of your HR needs into one relationship. This also gives you peace of mind knowing that experts are handling everything for you so that you can focus on running your business.

Get Express Quote

Global Payroll Management & Compliance Considerations

Managing employees in different countries can be a complex and challenging task. Employees may need to be registered and taxed differently in each country, and there may be other laws that need to be followed. This can make it very hard to keep track of everything and ensure everything is done correctly.

When it comes to payroll, there are many different regulations that you must follow to avoid penalties or litigation. Each country has its laws and regulations, but some standards apply internationally. You must know and adhere to tax deadlines, withholding and reporting laws, and regulations requiring employee tax slip signatures. If you fail to adhere to these payroll compliance rules, you could face severe penalties that could negatively impact your business.

Global payroll management is a complex process that requires careful consideration of various factors. Payroll specialists must consider local regulations and taxation requirements, which can be time-consuming and difficult to navigate. However, by addressing some key challenges and partnering with a Global PEO, organizations can ensure compliant, accurate, and timely payments.

Global Payroll Calculator: Accurate Global Employment Cost Estimation

When hiring employees and contractors across the globe, you may not be choosing the most cost-effective and business-friendly country.

  • Do you know which country is the most cost-effective place to hire employees? 
  • What are the costs of entity establishment and legal representation?
  • What are the payroll costs and management fees?
  • What are your ongoing annual tax compliance costs?
  • Are you fully aware of banking implications?
  • Did you know that labor laws and hidden costs could make your company less efficient when choosing a country to run your business? 
  • Did you know that there could be a more cost-effective country to hire employees in and save up to 50%?

This is because countries have different labor laws, compliance, and tax regulations. What if, instead of limiting your company’s international expansion by cutting through the jungle of local regulatory compliance, tax, labor, and immigration requirements, you could have all the information of 190 countries at your fingertips?

Acumen International offers the Global Payroll Calculator to help businesses understand the compliance requirements for conducting business in a new country. Acumen’s research team tracks developments in 190 countries around the globe. It provides up-to-date data on local regulations related to tax, payroll regulations, benefits, hiring practices, compliance requirements, and other labor-related factors that impact an employer’s bottom line. This valuable information makes the Global Payroll Calculator an invaluable tool for businesses looking to expand internationally.

Global Payroll Calculator helps companies reduce labor costs by providing up-to-date information on hiring, compensation, and tax requirements. It is also an ideal tool for quickly locating employees in any country.

Ready to get started? Request a quote!

Get Express Quote

International Global Payroll and Taxation in South Africa

Employment related taxes

Residence (Local & Expat). South African residents are taxed on their worldwide income. Credit is granted in South Africa for foreign taxes paid. Non-residents are taxed on their South African sourced income. The same rates of tax are applicable to both residents and non-residents.

Progressive tax rates apply for individuals.

There are no local income taxes in South Africa.

Social security contributions. No significant social security taxes are levied. Employees are obligated to make contributions to an unemployment insurance fund. The employee’s contribution is withheld by the employer. Employee’s contributions are limited.

Payroll Cycle in South Africa (RSA)

An employer must pay remuneration not later than seven days after:

  • The completion of the period for which the remuneration is payable.
  • The termination of the contract of employment.

Subsection does not apply to any pension or provident fund payment to an employee that is made in terms of the rules of the fund.

Non-payroll taxes in South Africa

An individual trader is liable for value-added tax (VAT) on the same basis as a company. VAT is an indirect tax, which is largely directed at the domestic consumption of goods and services and at goods imported into South Africa. The tax is designed to be paid mainly by the ultimate consumer or purchaser in South Africa. Goods and services are either exempt from VAT or are levied at two rates, namely a standard rate and a zero rate. Very few business transactions carried out in South Africa are not subject to VAT. The tax is collected by businesses that are registered as vendors with the South African Revenue Service (SARS) on all taxable supplies throughout the production and distribution chain. Sales or supplies by non-vendors are not subject to VAT.

Zero-rated supplies. The VAT Act contains a list of supplies of goods or services that are taxed at the zero rate. The list primarily refers to exports and international transport items. However, other specified goods utilised for farming purposes, the sale of an enterprise as a going concern, certain basic foodstuffs, fuel subject to the fuel levy, and deemed supplies by welfare organisations are also zero-rated.

A zero-rated supply made by a vendor is subject to VAT but at a rate of 0%. Under a zero-rated supply, a vendor does not charge VAT on the consideration for the supply and obtains a refund or credit for the VAT paid on taxable supplies utilised in the making of the zero-rated supplies.

Get Express Quote

What Services Can a Global PEO Provide in South Africa?

Acumen International is a global PEO that provides international employment services to companies with employees working in multiple countries, including South Africa. We offer our clients a comprehensive service portfolio that includes:

A single point of contact for all your cross-border payroll administration. A specialized employer organization (GEO) administers a local payroll through the EOR, which gives employees the confidence they will receive statutory employment benefits and protections. Local payroll management is one of the most challenging aspects of running any business, so it’s crucial to work with an experienced GEO having expertise in global payroll.

A Global Employment Organization (GEO) ensures that the employment contract meets local labor law requirements. A GEO also works with employers to help them understand and comply with employment laws in different countries. The GEO also provides resources and training to employees on their rights and responsibilities under the contract.

A Global Employment Organization (GEO) provides work permits and visas for employees from other countries. This makes it possible for these workers to come to the employer’s country and work there for a set period.

A Global Employment Organization (GEO) guides clients on employment law matters such as notice, severance, termination, and statutory benefits.

Global Employment Organization (GEO) provides communication and coordination between the EOR, client company, and employees through regional account managers, allowing for a more efficient and effective working relationship between all parties involved.

A Global Employment Organization (GEO) strives to create global pay strategies and structures that are fair and competitive. They consider many factors when setting pay levels, such as internal business needs and market rates. They also examine how local taxes and regulations can impact those rates to create a cohesive global model.

A Global Employment Organization (GEO) can help align HR programs with global function and business needs.

It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.

Disclaimer: Any of the above information is subject to changes imposed by South African laws. To get the latest updates on taxation in South Africa and in 190 countries worldwide, contact Acumen’s team of global employment experts.

Ready to Get Started?
Get Express Quote