Local companies which may not have the expertise to deal with unreasonable unions, strikes, unfair dismissal cases, annual wage negotiations or discipline problems have successfully used labour hire to reduce their Human Resource costs and -risks whilst improving employee relations and production in general. Our very competitive fee structure appeals to both the client company and the contractor/consultant. Our internal procedures and systems are geared towards satisfying the individual needs of all our clients. Capital PFS is a properly registered Labour Services Provider with all the necessary statutory authorities:

SARS - IRP30 SARS - Pay As You Earn Tax SARS - Value Added Tax The Services Seta - Skills Development Workmen's Compensation The Unemployment Insurance Fund The Metal and Engineering Industry Bargaining Council The Motor Industry Bargaining Council

The following below indicates how our CONTRACT MANAGEMENT structure operates.

Company

Contract between company & Capital PFS for the service of the Contractor / Consultant Invoice submitted to company for total cost to company Company pays Capital PFS total amount indicated on the VAT invoice without any deductions

Capital PFS

Service Contract between Capital PFS & Contractor / Consultant Structuring of Remuneration package Capital PFS pays net salary after deductions within 24 hours Contractor's personal tax return is taken care of at no extra charge

Contractor / Consultant

SERVICES TO BE RENDERED DURING CONTRACT MANAGEMENT

Towards Company:

Capital PFS becomes a creditor of the Company delivering an all-inclusive VAT invoice for the monthly gross remuneration of the contractors. Capital PFS ensures payment of individual salaries through our electronic banking system. All UIF, PAYE, RSC-levies, Workmen’s compensation fees and Skills Development Levies are taken care of by Capital PFS, and it will not be necessary for the Company to register for PAYE, UIF, SDL or Workmen’s Compensation.

Towards the Contractor/Consultant:

Obtaining initial personal detail to structure individual packages. Updating personal detail with future changes. Auditing reimbursements and crediting contractors/consultants where applicable. Making available an income statement via e-mail or by normal post, setting out our calculations and distribution of the contractor’s remuneration. General tax advice. The contractors/consultants have the choice of joining the Group medical aid and Provident fund of Capital PFS. These funds will provide the contractor/consultant with the best benefits, as they are established funds.

OUR FEE STRUCTURE FOR CONTRACT MANAGEMENT

Capital PFS currently charges a fee per month plus a percentage of the gross income of the contractor/consultants depending on the industry of work. The percentage is to cover the company’s responsibility in terms of statutory expenses such as, Workmen’s Compensation Commissioner, Skills Development Levies and UIF. The fixed fee is to cover all administration done for a client on a monthly base, as well as the finalization of each client’s tax return at the end of the financial year, at no extra charge, provided that the client has been with Capital PFS for at least 6-months, by the time that Capital PFS issues the IRP5’s. An annual, inflation related, increase usually takes place on the 1st of March of each year.