Teryl @ Work

National Payroll Week has focused +Accsys (Pty) Ltd   on all things payroll. I sat down to talk to Cathie Webb, our Chief Operations Officer, who is a director of South African Payroll Association (SAPA), as well as on the executive of the Payroll Author’s Group (PAG). Having published articles and blogs on the Employment Tax Incentive (ETI) bill last year, I thought it would be a good idea to discuss this with Cathie. She confirms that, in late 2013 when the Minister of Finance approved the ETI Bill, it was designed to encourage business to employ youth, and to supplement the pool of employable and skilled workers available in South Africa. Cathie says “The ETI allows business to reduce their PAYE burden according to a formula which incentivises employment of people earning under R6000 per month.  According to SARS, in the first month of implementation, 56 000 new jobs were created*”. “As this number may include interns, who would have formed pa...

The last part of the article on ETI, and we are still waiting for some finalisation, which I will post when I receive it. How does an employer deal with part pay periods? The incentive must be pro-rated to match the calculation of remuneration.  For example, if an employee starts on the 15 th of the month, and earns R2000 in the first month with the company: His remuneration must be grossed up to R4000 per month The ETI on this value calculated (R1000 in the first 12 qualifying months of employment) This results in a R500 ETI for the employer on this employee for this month Does it run for 24 Months from Date of Employment? Confirmation of this is required, but it appears that the Employer may claim for each employee for up to 24 months, even if they are not consecutive (ETI qualifying months, not months of employment) What happens if an employee leaves the organisation? Assuming all other qualifying factors are in place The next employer can start ...

How is the tax incentive calculated? Assuming qualification: Year One : Employee remuneration of : R2 000 or less - 50% of monthly remuneration R2 001 to R4 000 - R1 000 R4 001 to R6 000 is based on a formula Year Two: The incentive is halved : References and Links SA Treasury - Employment Tax Incentive Bill Accsys - Full article

While there has not been agreement from all parties on the Employment Tax Incentive (ETI) Bill, and the roll out, it was formally published on 4th November, 2013.  With the January go live date, there are still some issues that need to be finalised, but simply put, the concept is as follows: The incentive runs from January 1st, 2014 to December 31st, 2016 The employee must be between 18 and 29 years old on the last day of the relevant month The employee must earn a wage of less than R6 001 per month The incentive can only be claimed in the months when the remuneration is under R6 001  The employee must have been engaged after October 1st, 2013 The employer must be eligible by being  Registered for PAYE In good standing with SARS Not local, provincial or national government Limited to South African citizens and valid asylum seekers, the main driver is for youth employment, however, the incentive also applies to employment in Special Economic Zones (SEZ) ...

There are always ways to make money out of unsuspecting people.   Last week SARS issued a warning to all tax payers to be aware of fake tax practitioners offering guaranteed tax refunds for a rather large share of the refund. SARS Media Release 15th October, 2013 I know that, no matter how simple your tax is, it is stressful to submit returns.   It is important to note that if a fraudulent practitioner submits on your behalf, you, as the taxpayer, are still ultimately responsible, and SARS is still able to recover any shortfalls from the taxpayer who might have paid over a portion of the refund to the fraudster. Should you not wish to do it yourself ( and it really is easy with eFiling): Make sure that you use a bona fide practitioner and check their credentials thoroughly.   Remember, if they say it is guaranteed, you should be immediately suspicious or Taxpayers are able to visit any SARS branch, with all the relevant documents, and a SARS official will su...