Yesterday morning we pushed the pay button making sure our staff receive a Christmas bonus before Christmas so at least they and their families can enjoy themselves. Basically the bonus is a double salary or a 13th cheque as it is often called. Having staff takes on a different kind of responsibility as you were once a staff member yourself and know exactly what it feels like. Uncertainty and expectations are at an all time high with staff not knowing what to expect and even if there is going to be a bonus or not.
This year with Christmas falling on a Thursday it means we have 2 days off being the 25th and 26th, but back at work on Saturday the 27th. Sunday the 28th we will still process orders from home so the paperwork is ready for Monday morning. I also have an important packaging business meeting on Sunday the 28th so there is no real time off this year. Next year will probably be more hectic than this year with an additional business to run.
I don't really care for a bonus myself due to the tax man who takes a 46% chunk so it would be massively diluted. This is why we need a new accountant on our side as I truly believe we are over paying and there are other solutions. 46% tax in my book is just far too much to be paying and the scary part is there are stories or rumors circulating that personal and business taxes are set to rise in February again next year. You start to wonder is it all worth it and what is the point of working harder when you are just giving half away.
The month of November saw another 126 businesses liquidated in South Africa which some will say the numbers are decreasing which is good news. The other side of the coin is that there are less businesses to liquidate so as a percentage the numbers are still coinciding what has been seen previously. The economy is not improving with unemployment remaining at an all time high officially over 34% and unofficially somewhere between 50% and 60%. No one really knows as guessing how many people reside within the borders is pure guesswork with many foreigners not even documented.
Our business has managed to keep it's head above water which has been a team effort that would not be possible without the staff. Employees can make or break a business and we have a good bunch of people who all pull together when required. They may bitch and moan like everyone else does ,but they are grateful for the employment. One just has to drive to work in the mornings to see the hundreds of unemployed standing on the street corners hoping someone stops and offers them a days work.
For many years the majority of our staff never received any type of bonus and were lucky if they received any type of increase. The business back then was transforming and has had it's financial struggles and why we took it over. Some of those struggles still exist today yet we are working through those challenges and will slowly steady the ship. I do think if the company had stayed as it was it would no longer be around and we were the only hope. At the time it was a gamble, but you have to be able to back your ability knowing you have what it takes to do things differently from the previous business owners.
Knowing in what areas that can still be improved are key yo any business growth combined with the areas where savings can still be found. A business has to be continuously evolving improving wherever possible or you could find yourself becoming a liquidation statistic. The plans for 2026 are simple by adding more business to what is already here and making sure what we have keeps on performing.
Posted Using INLEO
The situation is the same in my country. Taxman takes around 40 - 45% and you are basically working to pay almost half of your earnings to the state. It wouldn't be such a big problem if services would be free and of high quality, but the reality is far from that.
This is too high and unfair especially when you have paid tax and then purchase items that include another 13% vat. When you think about it you are paying closer to 60%.
You must have some kind of terminal illness giving your staff a Xmas bonus . Are you OK?
Been running a fever for a few days lol.
Running a small business through tough times like these is no joke 😔. Your team sees your effort and heart. That's worth more than any bonus. Brighter days are coming, friend, keep holding on💪. Wishing you a peaceful Christmas 🎄✨
Tax can be ridiculous high indeed , we always try to lose money on paper and make sure we got money back from the tax , but that was back in 1996 . Not sure if those kind of tricks are still possible.
We are getting a new accountant in the New Year and the aim is to try and recoup most of the tax.
Good luck with the new accountant , hope he can make it happen for you :)
We were advised to find a Jewish or Muslim accountant and we are doing exactly that.