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- SARS and related registrations:
- Pay-As-You-Earn (PAYE)
- Skills Development Levy (SDL)
- Unemployment Insurance Fund (UIF)
- Workers Compensation Assistance (WCA/COIDA)
- Monthly payroll processing and payroll reconciliations
- Issuing of pay slips and monthly payroll reporting
- Submitting all monthly statutory requirements (PAYE, UIF, etc.)
- Preparation, reconciliation and submission of EMP501 for 6- & 12-month assessments
- Issuing of IRP5 certificates
- Submission of Annual Workmen’s Compensation
- Submission of UIF Forms at the Department of Labour
- Application for tax directives
Skills Development Levy
SDL is a levy imposed to encourage learning and development in South Africa and is determined by an employer’s salary bill.
Where an employer expects that the total salaries will be more than R500 000 over the next 12 months, that employer becomes liable to pay SDL.
Unemployment Insurance Fund
As of 1 March 2021, the maximum earnings ceiling is R17 712 per month or R212 544 annually.
For employees who earn more than this amount, the contribution is calculated using the maximum earnings ceiling amount. Therefore, the maximum contribution which can be deducted, for employees who earn more than R17 712 per month, is R177.12 per month.
Employers are required to submit their Pay-As-You-Earn (PAYE) Employer Annual Reconciliations Declarations (EMP501) twice a year which will enable the employer to issue employees with their Tax Certificates (IRP5).
Monthly Employer declarations (EMP201) submitted needs to reconcile with payments made to SARS as well as IRP5 generated for staff regarding PAYE, SDL and UIF values.
Above needs to be submitted via e@syFile™ Employer or if you have less than 50 IRP5/IT3(A)s through e-Filing.
Reconciliation declarations should be submitted twice during year of assessment, for the:
- Interim period – which is for the six-month period of the fiscal being 1 March to 31 August
- Annual period – which if for the full fiscal year being 1 March to 28/29 February.
Submission due dates for 2020/2021:
- 13 September 2021 to 31 October 2021 for Period March 2021 to August 2021
- 1 April 2021 to 31 May 2021 for Period March 2020 to February 2021
The purpose of a tax directive is to enable SARS to instruct an Employer, Fund Administrator, or Insurer how to deduct employees’ tax from certain lump sums to a taxpayer or member.
Below are some examples of when a tax directive should be applied for:
- Gratuities paid by an employer (e.g. death / retirement / retirement due to ill health / retrenchment / other);
- Employees’ tax to be deducted at a fixed percentage (e.g. commission agents / personal service company / personal service trust);
- Employees’ tax to be deducted at a fixed amount (e.g. Paragraph 11 of the 4th Schedule (hardship) / assessed loss carried forward);
- Employees’ tax to be deducted on any amount to be included under section 8A or 8C (gains made by directors or employees on share options) of the Income Tax Act;
- Foreign Tax Credits under paragraph 10 of the 4th Schedule to the Income Tax Act. For taxpayers with foreign employment income – allow an employer to apply for a different basis to calculate the amount of employees’ tax to be withheld from the employee’s remuneration on a monthly basis.
- Lump sums paid by pension, pension preservation fund, provident, or provident preservation fund.