As U.S. businesses look for innovative ways to maintain a competitive edge in a fast-paced market, offshoring is becoming an increasingly attractive option. One area gaining traction is finance roles, particularly in auditing.

This article compares South African auditing salaries vs the U.S., highlighting the significant cost savings for U.S. businesses when hiring South African talent.

Employment Costs

In the U.S., employers are required to pay for Social Security, Medicare, and federal and state unemployment insurance (UI). Specifically, U.S. businesses pay:

• 6.2% for Social Security
• 1.45% for Medicare
• 6% of the first $7,000 of wages for federal unemployment insurance (FUTA)

A rough estimate of mandatory employer costs is between 10% and 15% of an employee’s payroll, depending on the state.

In comparison, South African employers face much lower costs. The mandatory employer contributions in South Africa include:

• A 1% contribution to the Unemployment Insurance Fund (UIF), which must be matched by the employer. 
• A 1% Skills Development Levy

As a result, the total cost to the employer in South Africa is just 2% of an employee’s payroll.

Audit Roles

The audit function is essential for ensuring financial integrity and compliance within a business. Below are the key roles within this sector:

• Audit Seniors
• Audit Managers

South African Auditing Salaries Vs The U.S.

Let’s break down the roles, their responsibilities, and compare the salaries of auditing professionals in South Africa with those in the U.S.

South African Public Accounting Salaries Vs The US

Let’s compare some roles, their responsibilities, and how offshoring addresses operational challenges.

Audit Seniors

Also known as Senior Audit Associates, Audit Seniors lead audits and ensure compliance with regulatory standards. 

Typically, these professionals have 3-5 years of audit experience at Big 4 and Top-10 audit firms and are fully qualified CAs.

• The average annual salary for newly qualified Audit Seniors is around $89,600 a year in the U.S.
• The total cost of employment after employer contributions is $96,874.40.
• Now compare this to South Africa – the salary is around $42,380.89 a year.
• The total cost, after including employer contributions, is $42,918.96 in South Africa. 

By hiring an Audit Senior from South Africa, a U.S. firm can achieve cost savings of approximately 56%, translating to around $53,955.44 per year.

Audit Managers

Audit Managers oversee audit teams, design audit plans, and ensure the quality of audits. These professionals typically have 7-10 years of experience and possess extensive knowledge of auditing standards.

The average salary for an Audit Manager is:

• Around $111,250 a year in the U.S. – $120,180.63 after contributions.
• Around $54,254.65 per year in South Africa – $54,224 after contributions.

The total savings is around 54% (roughly $65,270.35).

Why Offshoring To South Africa Is A Smart Financial Move

Offshoring audit roles to South Africa offers U.S. firms a cost-effective solution, with several key advantages:

Competitive Compensation

South African audit professionals are paid significantly lower salaries than their U.S. counterparts, yet still maintain high standards of work, resulting in direct cost savings.

Lower Operational Costs

Hiring in the U.S. can be a lengthy, complex process involving multiple layers of background checks, compliance checks, and onboarding procedures. 

South African EORs often streamline this process, offering ready-to-hire professionals. This reduces the time and effort required for recruitment, enabling businesses to scale quickly.

Access To Skilled Talent Pools

South Africa has a large and highly skilled pool of auditing professionals familiar with international standards and practices, offering U.S. firms access to quality talent at a fraction of the cost.

In fact, South Africa’s auditing professionals are some of the best in the world!

Conclusion

Offshoring audit roles to South Africa offers U.S. firms substantial financial benefits. When comparing the costs of employing Audit Seniors and Audit Managers, businesses can save at least 54% in annual costs.

Ready to get started? Take a look at our article on how to hire international employees or our super simple guide to remote employee onboarding.