To prevent penalties, here are eight facts you should know about payroll in South Africa.
1) Employers must be registered with SARS AND the Department of Labour.
SARS is not the only location where you need be registered as an employer.
Every South African employer should be registered as an employer with both SARS (for PAYE, UIF, and SDL) and the Department of Labour (for UIF).
2) You must file your monthly returns with both SARS and the Department of Labor.
People frequently overlook their employer registration with the Department of Labour, as well as their documentation filings to the Department of Labour.
Your monthly returns must be submitted to both SARS and the Department of Labour.
3) The amount of UIF you must pay is limited.
According to South African law, you must donate 1% of your employees' salary.
You also remove 1% of your employee's salary as a contribution to UIF.
This translates to a total contribution of 2%.
However, employers are frequently unaware that there is an R177.12 cap.
No matter how much your employee earns, the maximum amount for your UIF payment will not exceed R148.72. Your employee's contribution is similarly limited at R148.72.
4) Monthly PAYE payments are due on or before the 7th of each month, even if it is a weekend.
In terms of PAYE, there are two monthly deadlines.
To begin, you must submit your Monthly Employer Declaration (the EMP201).
Then, by the 7th of the next month, you must pay your PAYE. If the 7th falls on a weekend, you should pay before the weekend.
5) Your Employer Bi-Annual Reconciliation Declaration must be submitted twice a year.
The EMP501 (Employer Bi-Annual Reconciliation Declaration) is due twice a year (due by 31 May and 31 October). You can file it using SARS's Easyfile system.
6) Tax certificates for employees are due once a year.
Every year, you must prepare your employees' tax certificates (the IRP5 forms). This is due on May 31.
7) If you do not accurately compute your tax, your employees may be paying too much.
If your tax computations (on the IT12 returns) are incorrect, your employees will pay too much or too little tax. Employees will either receive a refund or must pay when completing their annual tax return to SARS.
8) You are not required to do everything yourself.
Keeping track of all your Payroll needs might be difficult.
Simply join up for Payroll services from Tundra Tax & Accounting , our payroll professionals will manage your payroll requirements.
Tundra will manage all of your annual, biannual, and monthly submissions to SARS and the Department of Labour.