Page 6 - KZN BUSINESS SENSE Vol3 No3

REMUNERATION STRUCTURING –

ADOPTING LEADING PRACTICE

Tanya Tosen- planning. Conversely, trustees will The Supreme Court of Appeal says for benefits or allowances which additional administration. The
Remuneration always promote better retirement you can Salary Sacrifice employees do not want. This means administration is actually not that
Consultants planning and more risk benefits, hard earned employee remuneration much more, where you are currently
which are indeed important, but It was only confirmed recently, is paid towards benefits which administering the employee benefit
hat should this be more important 30 November 2015 to be exact, the employee does not value. It provider and payroll systems.
can than putting a child through the that the Supreme Court of Appeal may make your employee benefit
Wbe best possible education. The correct has delivered a final judgement broker happy, but it does not mean What is New?
done to answers only come when you on remuneration structuring. The anything for your employee. Rather
remunerate deal with holistic experts that can simple message is that it is absolutely give your employee the choice to The budget 2017/18 had plenty of
employees demonstrate to you an approach of legal to structure remuneration and utilise flexible benefits to maximize bad news for employers, but there
better? The “total reward statements”. to do a salary sacrifice. A word of their package. has been serious relief given for
employee child bursaries’.
simple answer caution before you proceed. Whilst
is plenty. Tough times means no more holy the principle has been confirmed, Flexible Items Tanya Tosen is a remuneration,
Yet many cows the SCA made it very clear that a The most commonly allowed tax and benefit specialist with
employers do not get the most out of This normally starts with package structuring agreement and items to a flexible-package are Remuneration Consultants.
employee package structuring. This economic times being what they correct documentation, which will retirement funding, group life, Previously from Deloitte, she is
is one of those areas where there are are and employers cannot afford to include policies and often a Package disability, income protection, passionate about employee package
“too many experts”, and correctly give employees large increases. It Structuring Tool, is compulsory. funeral cover, employee vehicle structuring, including rollout and
so, as this spans the professional also becomes difficult to give good With no ambiguity, the SCA said it insurance, travel allowance, providing a sustainable model of
functionality of remuneration increases where you are retrenching will simply not believe oral evidence company vehicles, medical aid, gap remuneration best practice. 
specialists, tax advisors, auditors, staff. The question then is, what and the actual legitimacy depends cover, thirteenth cheque etc.
financial planners and trustees. can be done to pay employees on correctly executed documents. tanya@taxconsulting.co.za
Therefore, depending on which better. Conversely, ever offered Why do all companies not do this? www.remunerationconsultants.co.za
professional you ask, you will get an employee a job and needing to What is the Golden Rule? Employers are generally not
different responses, for example, “gross-up” the package because the An employee should be allowed well informed of what legally
tax advisors will comment on that take-home pay is not enough? The to structure their remuneration can be done. In addition, the
there is no tax risk, whilst they have reason is mostly not your costing to meet personal financial functions within the company
no experience in remuneration of the job, but rather not having the requirements. Where this is not who should promote this flexibility
methodology and financial correct package structure flexibility. done, the employer is “paying” are usually concerned about

SOUTH AFRICA’S NUMBER ONE APPLIANCE BRAND

EFY Appliances (Pty) Ltd Our cooling range boasts NO a cleaner, eco-efficient life, and ■ twitter.com/defy_sa
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Dand distributor of major COOLING technology (to manage consumption.
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consumer a full range of kitchen, control, (ensuring you have fresher www.defy.co.za, or follow us on: a part of! 
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appliances for over 112 years. a 4 star freezer.
Established in 1905, Defy debuted We are the only brand to have
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electric stove in South Africa. In the into our side by side fridge freezers,
last 80 years, the brand has further which due to photosynthesis,
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African households through the produce. At DEFY bigger is better,
manufacture of durable goods such as we boast the largest side by side
as gas ovens, washing machines, fridge freezers spanning a full one
dryers and ovens. This has lead to metre, more than enough space for
DEFY becoming the largest white the big hearty family.
goods manufacturer in the country
while presenting the largest product All DEFY units offer an ‘auto
range in South Africa. defrost’ fridge function, which DEFY ambassador Wayde van Niekerk, meets the factory staff DEFY Factory in Jacobs
allows units to automatically
Our innovation has not gone drain excess liquid. DEFY’s well-
unnoticed and we have been renowned chest freezer range offers
awarded one of the KZN Top a multi-mode function, allowing
Business Awards, The Sunday Times you the freedom to convert your
Top Brands and recently the Ask unit between a fridge, chiller and
Africa Kasi Awards, to name a few. freezer.
DEFY’s cooking appliance range Our laundry range boasts
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At DEFY we believe in innovation
DEFY has recently included a through technology; ‘We believe
stylish range of small domestic in Better’. We endeavour to find
appliances that includes a range of solutions to current economic
blenders, juicers and coffee makers, conditions such as electricity and
which are quickly proving to be in water shortages by engineering
high demand. products that help you to live
The DEFY leadership team

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