SARS, Employers and Remote Workers

The South African National Treasury’s budget proposals for February 2023 have highlighted intentions to harmonize obligations for both local and foreign employers, particularly affecting remote workers. This move by the Treasury, in coordination with the South African Revenue Service (SARS), could lead to foreign employers being mandated to register as “employers” with SARS. This change is motivated by the growing global trend of remote work, which has been accelerated by the COVID-19 pandemic. It allows employers from different parts of the world to engage South African workers for remote positions, providing mutual benefits.

Currently, there exist disparities in legislation concerning the obligations of foreign employers. The proposed amendments aim to standardize the registration requirements for foreign employers, ensuring parity between resident and foreign employers. Foreign employers who previously didn’t have a “representative employer” in South Africa to handle remuneration and deductions might be required to comply with PAYE deductions, the 1% skills development levy (SDL), and Unemployment Insurance Fund (UIF) contributions.

Practical implications arise from these changes. Foreign employers may lack certain credentials necessary for SARS registration, such as a CIPC registration number or a South African bank account. In response, experts suggest employing an Employer of Record (EOR) company that acts as the in-country employer, managing payroll compliance obligations on behalf of the foreign entity. This arrangement ensures adherence to local employment laws and tax regulations while allowing the foreign employer to maintain control over day-to-day supervision and work-related decisions.

The proposed alignment aims to streamline the regulatory landscape for remote workers and foreign employers in South Africa. The draft Taxation Laws Amendment Bill for 2023, expected in July, will likely provide more specific wording for these amendments. This effort to establish consistent rules for both resident and foreign employers reflects the changing dynamics of the global workforce, driven by the surge in remote work opportunities.

The proposed changes to South African employment regulations seek to address the growing prevalence of remote work by establishing uniform obligations for foreign and local employers. While these changes pose practical challenges, the adoption of an EOR arrangement could serve as a viable solution for foreign employers seeking to navigate the new compliance landscape efficiently. The envisioned amendments represent a broader global trend in adapting legislation to the realities of remote work in the digital age.

Source: BusinessTech South Africa

Future Work at Home Outlook for Australians

The COVID-19 pandemic prompted a massive shift in the global workforce, with many employees transitioning to remote work. In Australia, this shift has led to significant changes in work patterns and attitudes towards remote work compared to working in an office.

Before the pandemic, a Melbourne property surveyor employed 180 staff who worked in the office every day at 9 a.m. Now, employees work from home, allowing for more flexible schedules. For instance, drone operator Nicholas Coomber can start his fieldwork as early as 7:30 a.m., affording him more family time and the ability to pick up his children from daycare earlier.

While corporate leaders such as Jamie Dimon of JPMorgan Chase and Elon Musk of Tesla and Twitter call for a return to in-office work, Australian unions are pushing for remote work (WFH) to become the norm. Unions have taken legal action against Australia’s largest bank and are working with the government to advocate for continued remote work opportunities.

Australia has a history of embracing labor market changes during crises, often setting precedents for other English-speaking countries. For example, Commonwealth Bank of Australia (CBA) faced a challenge from its staff who took the bank to an industrial tribunal to contest a directive requiring office work half the time. Similarly, National Australia Bank (NAB) reached an agreement with a union allowing employees to request WFH, while Canada’s federal workers lacked similar protections.

In the European Union, lawmakers are updating telework protections to align with the post-lockdown economy. However, the demand for WFH remains strong globally. A survey found that employees with WFH experience prefer two days of remote work per week, twice as much as what bosses prefer.

Despite the benefits for employees, there’s a potential for conflict between workers and employers over remote work arrangements. The Australia Institute’s Jim Stanford noted that rising unemployment could shift bargaining power toward employers, potentially leading to a “historic confrontation.”

This shift to remote work has already impacted office landlords, with a notable decrease in demand for office space. Around one-sixth of Australian capital city office space currently stands vacant due to reduced in-person attendance.

Overall, the article highlights the evolving dynamics of remote work in Australia, showcasing the contrast between employee preferences and employer expectations, and the potential for long-term changes in work patterns and labor market dynamics.

Source: Byron Kaye

The Alarming Impact of “Loud Quitting” on Workforce Engagement and Global Economy

BNN Bloomberg reports that, in a recent Gallup survey, it has come to light that a significant number of workers are engaging in what they call “loud quitting” – showing up for work but actively disengaging and taking actions to harm their organizations. This phenomenon is responsible for a staggering 8.8 trillion dollars in losses to the global economy, amounting to nine percent of the global GDP.

While “quiet quitters” still have a chance of being inspired or motivated to become more productive, the situation is more concerning with “loud quitters.” These employees have become a lost cause, as they demonstrate outright opposition to leadership and the organization.

Managers are faced with the daunting task of dealing with this disengagement crisis, as nearly 60 percent of workers worldwide admitted to quietly quitting their jobs. This leaves less than a quarter of the workforce who are actively engaged and contributing positively to their workplaces.

It’s not just a matter of job dissatisfaction; the lack of engagement is making people miserable, and it is taking a severe toll on the global economy. Addressing this issue and finding ways to re-engage disheartened employees is vital for organizations and economies to thrive in the long run.

London Workers Reluctant to Return to Office

A recent survey conducted by Bloomberg Intelligence reveals that nearly 75% of London workers prefer the flexibility of remote work and would contemplate quitting their jobs rather than giving it up.

The study, which included responses from 500 employees, highlights that 40% of respondents would require a raise of at least 16% to reconsider returning to the office.

The motivation behind the survey was to gain insights into the employees’ perspective on remote work, especially considering the significant impact it has on various industries, such as real estate with multinational tenants in prime spaces.

The survey’s results indicate a strong desire for remote work among London workers, with 95% already receiving work from home options from their employers.

Moreover, 70% of respondents believe that remote work is here to stay, becoming a permanent fixture in the workplace.

The data also shows a shift in attitudes towards remote work across different age groups. In June 2022, only 44% of the older generation favored permanent work from home arrangements, but that number has now risen to 77%, bringing it closer to the preferences of younger workers.

Various factors contribute to this trend. The survey reveals that reasons for employees preferring remote work include issues such as costly commutes, rail strikes, and overall convenience. Additionally, the opportunity for salary increases is a key consideration for those considering a return to the office. However, networking and knowledge transfer for younger staff are crucial aspects that motivate some employees to come back to the physical office.

The survey’s findings strongly suggest that remote work is likely to remain a dominant feature of London’s workforce. The allure of flexibility, cost-saving benefits, and the ongoing pandemic’s influence have solidified the preference for remote work, indicating a substantial cultural shift in the city’s working lifestyle.

Google Prefers In Office to Work at Home Workers

Joanne Lipman and Tom Gimbel join Brian Sullivan on CNBC’s Last Call to discuss Google’s decision to implement tough tactics in transitioning from full remote work to a hybrid model.

Lipman acknowledges the argument for returning to the office, highlighting the importance of serendipity and the limitations of productivity during Zoom meetings. However, she cautions that strict mandates requiring employees to be in the office can be arbitrary and may backfire.

Gimbel supports the idea of mandating office attendance, emphasizing the need for leadership and the challenges faced by companies like Google in switching their stance on remote work. He argues that these companies baited and switched their employees, falsely promising a permanent shift to remote work.

The discussion also touches on the consequences of these mandates. Lipman mentions that such policies disproportionately harm women and people of color, who benefitted from the flexibility of remote work, leading to increased participation in the workforce. She warns that forcing employees back to the office would result in losing valuable contributors.

Gimbel counters by suggesting that some employees who haven’t had the opportunity to work remotely should be considered. However, Lipman cautions that discriminating against those who prefer remote work or have limited face time in the office may result in losing talented individuals.

Workers Compete to Work from Home

The competition for work-from-home jobs has become intense in certain cities across the United States. According to LinkedIn’s Workforce Insights Report, Bend, Oregon, is one of the top cities where remote job applications have significantly increased. Nearly 75% of job applications in Bend are for remote roles, compared to just 42% two years ago. This trend is mirrored in other regions as well.

Nationally, only 11% of open positions on LinkedIn offer remote work, but they attract almost half of the total job applications as of May. The top ten cities with the highest interest in work-from-home jobs, based on the share of applications for remote-specific openings, are Bend, Oregon; Asheville, North Carolina; Wilmington, North Carolina; Myrtle Beach, South Carolina; Spokane-Coeur d’Alene, Washington; Sioux Falls, South Dakota; Medford-Grants Pass, Oregon; North Port-Sarasota, Florida; Wausau-Stevens Point, Wisconsin; and Crestview-Fort Walton Beach-Destin, Florida.

These cities, often referred to as “Zoom towns,” experienced an influx of residents during the COVID-19 pandemic when remote work became widespread. Bend, in particular, attracted tech workers from Silicon Valley and Seattle. However, as several big tech companies like Google, Microsoft, and Apple increase their return-to-office requirements, remote work opportunities may become scarcer. Individuals who relocated during the pandemic might have to let go of their newfound flexibility or explore alternative options.

The report suggests that if workers in these cities are unable to secure remote jobs, there may be an increase in entrepreneurship, a return to larger metropolitan areas, or a shift towards hybrid or in-office work. The competitive job market is likely to reshape the dynamics of remote work in these regions.

Source: CNBC

Transcription Jobs Outlook in 2023

In this video, Jennifer Marie discusses the current state of transcription job opportunities in 2023. She addresses the question of why she hasn’t been posting about transcription jobs lately and shares her observations on the availability of work. Jennifer highlights that there is currently a shortage of transcription jobs, with many companies either not hiring or placing individuals on waiting lists. She debunks misleading claims from certain YouTube videos that promise high earnings, stating that transcription requires a lot of work and doesn’t make you rich overnight, mentioning CastingWords, CrowdSurfWork, TranscribeMe, Scribie, Rev, and other companies.

Jennifer provides details about each platform, including the availability of work, pay rates, and country restrictions for application.

Additionally, Jennifer suggests alternative options for finding transcription work outside of dedicated platforms. She mentions websites like Upwork, Freelancer, LinkedIn, Fiverr, and PeoplePerHour, where freelancers can search for transcription gigs or create their own gigs to offer transcription services. Jennifer notes that the transcription job market has become more competitive due to advancements in AI transcription software, but human transcription still offers better accuracy in certain cases.

Jennifer concludes the video by sharing her thoughts on the current state of transcription jobs and expressing her commitment to sharing more opportunities as she comes across them. She encourages viewers to check out her transcription playlist for further learning and invites them to subscribe to her channel for future tutorials.

Overall, Jennifer provides valuable insights into the transcription job landscape in 2023, offering viewers a realistic view of the opportunities available and guiding them towards platforms that are actively hiring.

Intel Stock Plummets as CHIPS Act Passes the House

EXCERPT:

Dave: Intel just reported second quarter earnings after the bell. Yahoo Finance’s Jared Blikre, here on the same day that the CHIPS Act passes the House, which really benefits Intel, and shares are plummeting, Jared.

Jared: Dave, ironic that there is no boost from that. Let’s take a look at the numbers because I actually… Let me begin with a quote from the CEO Pat Gelsinger. Gelsinger, “We must, and will, do better.” And we’re gonna go over those numbers. See if they can improve upon them. Adjusted EPS for the second quarter coming in at 29 cents. The estimate was for double that, 69 cents. More than double that. And then, just going down the numbers, client computing revenue 7.7 billion.

The estimate was for 8.8 billion. Data Center, 4.6 billion, estimate 6.4 billion.
Now on to the forecast. This is where it gets a little bit scary. Seeing adjusted revenue of 65 to $68 billion. Previously, they saw 76. The estimate on Wall Street was about 74 and three quarters billion. Also they are seeing adjusted EPS of 2.3 dollars, $2.30. Previously, they saw $3.60. Estimate was for $3.39. Adjusted gross margin for the full year seeing 49% and the estimate was for higher at 51.8%.

Finally, capital expenditures, $23 billion, whereas before they saw 27 billion. The Street had an estimate a little bit lower than that. They are in the midst of a turnaround strategy right now. And execution wise, we gotta wonder if this is just an idiosyncratic story or if this is just about the industry as a whole.

I want to go to the YFi Interactive, and we’re seeing the shares down about nine, 10% right now. Actually,7 3/4, but let’s check out a year-to-date chart, is down 23%. CHIPS being very highly levered to the economy. We did get that negative GDP print earlier today. That’s backwards looking, but everybody wants to know, are people still buying chips and are our manufacturers able to deliver them to market?

Bitcoin Trades Below $23,000 Following ECB Rate Hike

EXCERPT: Welcome back to Yahoo Finance Live. Let’s take a look at the YFi Interactive to get a check on how the cryptos are doing this morning. You can see it is, yikes, spread across the board.

We take a look at the Etherium down 6% intraday. We also take a look at the big fish over here. That is, of course, Bitcoin down 6 1/2%. Down to about 22,600. Although, that is still far above where we were when you consider how far we went down in 2022.

But, of course, all this action coming after Tesla reported earnings yesterday. And Elon Musk’s company dipping 75% of its Bitcoin holdings out of crypto and into Fiat. Again, I mean, I don’t know if it’s a good thing that we’re talking about car companies and and their Bitcoin holdings, but that was pretty notable from yesterday.

Earnings are showing a Fair Amount of Strength

EXCERPT:

Speaker 1: There’s a lot to unpack in this market, but just broadly speaking, wondering how you’re viewing the earnings that we’ve gotten so far. Again, we’re very early into this earnings season. We’ve got the banks and we’ve got some of these large companies like Tesla reporting and hitting the tape as well. Any noticeable trends that you’re seeing?


Speaker 2: Well, I think when we take a look at earnings across the board, for the most part, we’re seeing a fair amount of strength. And I think investors coming into this earnings season were concerned about the deceleration and growth, and we’re seeing it, but it’s not nearly as bad as feared.

Right now, we’re going to expect EPS to finish this quarter, up around 9%. And it’s coming from sales growth that’s 13 to 14%. That’s a big number. A part of that margin contraction is coming from financials. So it’s not broad-base. There are certain groups which we’re seeing that margin pressure, but generally speaking, we’re seeing a fair amount of strength across the board. I think banks is one area where we’re seeing a little bit more increase in reserves, and I think investors are looking ahead to see if there is recessionary impulses in that process. But for the most part, we’re feeling comfortable with this coming earnings season.