Category: Payroll

Your payroll administration questions answered

As payroll administrators ourselves, we encounter a few frequently asked questions that employers, business owners or those responsible for payroll administration within organisations struggle with.  Below we have a detailed answer for you on these burning questions you are facing.  We hope that you find them insightful.

  1. Question: At what stage is an employer required to register for PAYE and UIF with the South African Revenue Service?

Answer: An employer is required to register for PAYE and UIF the moment he/she employs an employee whose salary exceeds the tax threshold.  For the 2020 tax year, this threshold is R 79 000 per annum.

  1. Question: If an employer is already registered with SARS for UIF, does the employer also have to register with the Department of Labour for UIF purposes?

Answer: Yes. Although UIF payments are made to SARS and not to the Department of Labour, UIF Registration with the Department of Labour still needs to be completed and a UI19 form, in which the employer declares the amounts paid over to SARS, must be submitted monthly.  The UI19 form can be submitted via e-mail.

  1. Question: At what stage is an employer required to register for SDL (Skills Development Levy) with SARS?

Answer:  An employer is required to register for SDL as soon as the total gross salaries of the organisation (all employees’ salaries) for any 12-month period exceeds R 500 000. Please note that SDL can only be claimed back for training provided from the relevant SETA to which the organisation belongs when the total salaries exceed R 500 000.

  1. Question: I have submitted my W.As. 8 return to the Department of Labour but didn’t receive my W.As. 6 assessment. Why is this happening?

Answer: In most cases where this happens, we find that the e-mail address of the company is completed incorrectly on the return. For many organisations, this has resulted in significant amounts of interest incurred on these amounts.  The original returns are no longer sent to organisations via post and are only sent via e-mail.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

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FIXED AND REIMBURSIVE TRAVEL ALLOWANCES

When determining the best remuneration package for travelling employees, South African employers and employees are continuously considering the benefits between a travel allowance, a reimbursive travel allowance or both. For this purpose, the employees’ tax (“PAYE’’) and income tax consequences of these two allowances are set out in more detail below.

A travel allowance is an allowance granted by the employer to the employee for the use of his or her private motor vehicle for the employer’s business purposes. This includes any fixed travel allowances, petrol, garage and maintenance cards.

A reimbursive travel allowance is any allowance which is based on the actual distance travelled for business purposes and is normally paid by the employer to the employee by multiplying the actual business kilometres travelled by a fixed rate per kilometre.

For PAYE purposes, 80% of the fixed travel allowance must be included in the employee’s remuneration. This percentage is reduced to 20% if the employer is satisfied that at least 80% of the use of the motor vehicle for the tax year will be for business purposes. Employees must keep a record of the actual distance travelled during the year for business purposes by way of a logbook. The full amount of the allowance is disclosed in the IRP5 under code 3701.

In respect of the reimbursive travel allowance, no PAYE is payable on an allowance paid by an employer to an employee up to the rate of 361 cents per kilometre, regardless of the value of the vehicle. The reimbursement does also not have to be substantiated by a logbook. But is only available to an employee if no other form of an allowance or reimbursement (other than for parking or toll fees) is received from the employer in respect of the vehicle. Any excess reimbursed portion (exceeding 361 cents per kilometre) is, however, subject to PAYE just like a fixed travel allowance. Disclosure of this allowance is under codes 3702, 3722 and 3703 on the IRP5.

For income tax purposes, the full (100%) of the fixed travel allowance, as well as the taxable reimbursive travel allowance, will be added together on assessment.

The employee will, however, be allowed to claim actual business travel expenses against the travel allowance (subject to certain limits) and the portion exceeding the claim will be taxable on assessment.

Where no actual costs are claimed, the South African Revenue Service provides a table which sets out fuel costs (per kilometre), maintenance costs (per kilometre) and a fixed cost which may be claimed against a travel allowance depending on the value of the vehicle. However, no fuel cost or maintenance cost may be claimed in instances where the employee has not borne the full fuel or maintenance cost.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

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VYF WENKE VIR DIE BESTUUR VAN JOU KLEINSAKE-BETAALSTAAT

’n Betaalstaat is tipies die nommer een bekommernis vir vele kleinsake-eienaars, wat bekommerd is of hulle dit reg doen. Maar dit hoef nie moeilik te wees nie – hier is vyf top wenke om ’n betaalstaat makliker te maak.

  1. Ken jou groot sperdatums

Die hantering van rekeningkundige sperdatums en werknemeropbrengste is baie minder stresvol as jy vooraf weet wat jy nodig het om aksie te neem. Maak seker dat jy ’n goeie stelsel het, wat jou attent maak op belangrike datums, en as jy iets moet doen. Om vooruit te werk, gee jou tyd om enige bekommernisse of probleme uit te sorteer.

  1. Belê in ’n betaalstaatsagteware

Betaalstaatstelsels soos Sage Instant Payroll of Sage One Payroll sal die hele proses vir jou outomatiseer. Dit sorg vir dinge soos Nasionale Versekering en belastingberekeninge, die generering van betaalstrokies vir werknemers, die byhou van wetgewing en die verskaffing van inligting vir die belastingopbrengste van die einde van die jaar.

  1. Hou tred met die betaalstaat wetgewing

Veranderinge in regulering kan beïnvloed hoe jy jou betaalstaat moet bestuur, so dit betaal om op hoogte te bly van belangrike nuwe wette. Voordele en belasting verander gereeld en terwyl jy nie noodwendig al die besonderhede hoef te weet nie, is dit die moeite werd om op hoogte te bly en advies te kry as jy nie seker is nie.

  1. Kry ’n finansiële rugsteunplan

Om op hoogte te bly met betalings is noodsaaklik in enige groeiende besigheid. Die opstel van ’n goeie kredietbeheerstelsel, die onmiddellike uitreiking van fakture en die ferm najaag van laat betalings sodra dit verskuldig is, sal help om kontantvloei-ontwrigting te vermy.

  1. As alles anders misluk… uitkontrakteer

As dit ’n werklike hoofpyn is om self ’n betaalstaat te bestuur, oorweeg die uitkontraktering aan ’n betaalstaatmaatskappy. Hulle is kundiges in wat hulle doen, en kan jou die moeite spaar om alles self te bestuur en om op hoogte te bly van regulasies en papierwerk.

Verwysing:

“8 Tips For Managing Payroll | Small Business Advice | Sage Singapore”. Sage.com. N.p., 2017. Web. 29 June 2017.

Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg  van die gebruik van enige inligting vervat in hierdie artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde advies. (E&OE)

 

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