Your Year-End Business Checklist: 10 Essential Tasks

“You can dream, create, design and build the most wonderful place in the world, but it requires people to make the dream a reality.” (Walt Disney) Faced with rising demand, every successful solo-business person or freelancer will start wishing they had someone around who could help. But deciding to hire means planning for ongoing salary costs, statutory contributions, written contracts and record-keeping. Do it deliberately, with preparation and you will gain capacity and potentially, increased profit. Do it without preparation and you can pick up expensive legal and tax problems. When’s the right time? First, make a list of tasks you believe you could hand over. Then look for areas that could be improved if you had someone to help with them. For example, if admin, scheduling or basic service work is stopping you from completing billable hours, then that’s a clear sign that something needs to change. You may want to consider hiring if you find yourself regularly turning away clients, or when your quality slips because you are over-stretched. You should also consider whether you have a steady pipeline that has areas of potential growth. If the need is temporary, a contractor might be a better bet. Taking that next step If you have decided to hire, then the next step is calculating just how much you can afford to pay. A salary is not just the monthly wage. You need to include a budget for additional costs you may need to carry, like equipment, training and the chance that the hire won’t be productive from the outset. Who to hire first When choosing who to hire, you should closely examine just where you’re getting stuck and then look for an employee who removes the biggest bottleneck. Common first hires include an administrative assistant to help with invoicing, scheduling and emails and a junior specialist or apprentice who can do the routine parts of your core service. Your job advert should cover that bottleneck and list the main tasks and skills required. You should avoid the temptation of writing vague or overloaded job descriptions in the hope of finding a jack-of-all-trades. While these people may exist, they won’t be looking at entry-level jobs. Key registrations as an employer Before the first payday, you will need to register as an employer with SARS so you can withhold PAYE (pay-as-you-earn) tax. You will also need to register with: The UIF (Unemployment Insurance Fund) where both employers and employees contribute 1% of pay The Compensation Fund (COIDA), which covers workplace injuries If your annual payroll exceeds R500,000 you must register for and pay the Skills Development Levy (SDL) – 1% of payroll. After that, you should set up your payroll processes as these need to be in place before the first pay run. Payroll mistakes are common and costly and your accountant (that’s us) can help you to set these up correctly. Contracts and labour law basics Every employee should ideally have a written contract that sets out salary, hours, duties, leave and notice period. Even small, first-time employers must follow The Basic Conditions of Employment Act (which sets minimums for working hours, leave, and overtime) and the Labour Relations Act, which governs fair dismissal procedures and dispute resolution. If you need help, ask us. Tax obligations and paperwork As an employer you must deduct PAYE from salaries and submit monthly EMP201 returns to SARS, pay your share of UIF and submit monthly UIF returns, pay SDL if you meet the threshold and submit the relevant returns, issue IRP5s to employees at year-end and reconcile with SARS (EMP501). While this may sound like a lot, as your accountants, we are here to help with it all. Legal structures Now might also be the time to restructure the way you do business. A sole proprietor can hire staff, but you remain personally liable for the business and any mistakes your employees make can become a very real and very personal problem. A private company (Pty) Ltd meanwhile separates business liabilities from personal assets and may be a sensible step once turnover and payroll grow. You can register a company with CIPC if you want that separation. Other options include a partnership and a trust. Not sure which to choose? Ask us.  Last word This may all sound like a lot, but try not to get bogged down in the details. Hiring is a practical step toward growth. It adds cost and complexity, but the right staff member can free you up to bring in more work, raise standards and, ultimately, build a business that lasts. Plan, register, document and manage carefully, and your first employee will be a value-add rather than a risk. And remember – we are here to help with all of the technical aspects.

“The South African Revenue Service is always ready to assist taxpayers to fulfil their legal obligations.” (SARS) Acknowledging that taxpayers often find it difficult to settle tax debt due to financial challenges, SARS has launched an expedited debt compromise process to help eligible taxpayers settle outstanding tax debts swiftly and on more favourable terms. The normal debt compromise process remains available to all taxpayers, and learnings from this expedited process will be used to enhance the broader system. What is a debt compromise? A compromise is a written agreement between SARS and a taxpayer in which SARS agrees to accept a reduced amount as full and final settlement of a tax debt. Once the taxpayer pays the agreed amount and complies with the terms, SARS waives the balance of the debt. However, if the taxpayer defaults or fails to remain compliant, SARS can reinstate the full debt. Expedited debt compromise eligibility criteria The process applies to non-disputed tax debts older than 12 months. You must be a client of a registered tax practitioner. Your tax returns must be up to date (even if payment is outstanding). The following exclusions apply: entities subject to specific legal processes (such as liquidations, estates, and business rescue cases), companies that are deregistered, cases subject to criminal investigation and audit, as well as cases within the write-off process, taxpayers who have had a compromise in the past three years, and taxpayers who have the means to pay but refuse to do so. Submission requirements Taxpayers applying for the expedited tax debt compromise process must provide comprehensive relevant supporting documentation with their applications, which must be submitted by 31 December 2025. These documents include: Latest Annual Financial Statements (not older than one year) Last six months' bank statements Cashflow forecast for 12 months List of Assets and Liabilities at market value Debtors’ age analysis Details of any connected persons Details of assets disposed of in the last three years Disclosure of future or contingent interests in assets Details of assets under the taxpayer's control (including through trusts) Current and projected income for the next three years Application letter with clear motivation, including the proposed settlement offer amount, and the source of funds to pay the offered amount Collection Information Statement (CIS) request with reasons and proof to compromise the debt. It is important that disclosures are accurate – if they aren’t SARS might not even consider the application. SARS has committed to resolving qualifying applications within four weeks, using dedicated teams and enhanced workflow management. Approved compromise settlements may be paid either in full (once-off payment), or in instalments as agreed by SARS. Act now to avoid escalation From 1 January 2026, SARS will escalate enforcement against taxpayers who remain non-compliant and have not applied for compromise. Such enforcement may include civil judgments against the taxpayer, writs of execution, collection of money from third parties such as banks, attachment of taxpayer assets, holding directors or members personally liable for the debt, sequestration or liquidation of the taxpayer, or preservation of assets against the debt. To support this intensified enforcement, SARS is engaging 260 legal collectors and 30 legal practitioners. If you are struggling with long-overdue tax debt, this expedited tax debt compromise process may offer your best chance to finally resolve it – on favourable terms, nogal. Contact us without delay, as applications close on 31 December 2025 and can only be submitted by registered tax practitioners.